There’s an old adage that says, “The more money you have, the better.” But realistically, the same can’t be said if you’re considering getting several bank accounts. When your bank accounts start to increase, keeping track of all your finances becomes difficult. But with that said, we’re not trying to imply that people who have lesser accounts are in the benefit.
Mostly, people have a savings account and a checking account. To go the extra mile, you can also get an account that has no fee for the ATM and facilitates you better when you’re doing a foreign transaction.
If you’re wondering, “should I have more than one bank account?” then you’ve clicked on the right article!
First and foremost, you should know that there are pros and cons to both of these approaches.
The ultimate decision will depend on an individual’s financial personality.
Multiple Goals for Saving Money
One of the most prominent reasons people get several bank accounts is because they have several savings goals. For example:
If you’re trying to save two months’ worth of income for an emergency, Saving for a vacation, or Saving money for a house’s down payment
Then getting three different accounts can be a good idea for you.
Preparing for the Worst
You can also get a different bank account if a particular payment method is only supported by one bank and can get you money in the quickest of ways. This can be useful when you’re trying to get quick cash. But make sure that you keep a small amount in this account!
A Bank Can Fail
Even though insurance might reimburse all that you lose when a bank fails, getting access to that money again could take time. To ensure you don’t have to wait for an extended period, you can try to keep the money in a different bank account.
Minimum Balance Requirements
Most people prefer keeping multiple bank accounts for the convenience they can provide, but some also have a minimum balance requirement. Opening one can be easy, but maintaining the minimum balance in four or five different ones can be difficult.
Building a Relationship Can Be Hard
Multiple banks can offer lower interest rates to customers with multiple bank accounts. But the sole reason people want different bank accounts is that they want to get an account in another bank. For a reason like this, building a relationship in one particular bank can be difficult.
As we stated earlier, your decision to get multiple bank accounts depends on your goals and how you want to spend your money. If you’re organized, and different accounts can help you save money better, getting a separate account might be a good idea. However, if you think you won’t be able to maintain the minimum balance, try not to get one.
If you’re still wondering, “should I have more than one bank account?” go over the information mentioned above again for more clarity!