11/16/2022
There is no doubt that in order to achieve your personal goals, you need to be in the habit of saving and organizing your finances as best as possible. While many experts recommend having only one bank account, others propose having several.
Since it comes down to what works best for you, here we will review the reasons to have more than one account.
Why have multiple bank accounts?
Americans have a motto that refers to multiple accounts: "Don't keep all your eggs in one basket". It is part of the popular wisdom on diversification and transferred to the financial world.
From the point of view of past crises, having several funds may make more sense for those who were affected.
Savings account with a
high yield of 4.65% APY, with no monthly service fee, that you can open from a minimum amount of $100.
Fee free online account with interest payments of
up to 3.30% APY and a $300 gift for new customers who sign up for the Rewards Checking Account.
Online interest-bearing checking account with a minimum of
0.10% APY and no fees, with free debit card, free online transfers and use of ATMs without charges.
Savings account with a profitability well above the average, with total availability of your money and with the possibility of requesting an ATM card to withdraw money.
Money market account with a higher profitability than savings accounts, with total availability of your money through checks and transfers.
Those who have the opportunity to save, run businesses or have considerable capital, do well to have several bank accounts.
This is because in the US financial system there are no restrictions on the number of accounts in one or more banks, which allows you to complement the services of each instrument and also obtain different benefits.
In our experience dealing with personal finance, the way to take advantage of multiple accounts requires a clear purpose for each one. In this sense, you can take advantage of these banking products for the following purposes:
Separate family expenses.
A joint account is one of the best options for separating family expenses from each spouse's personal expenses. Thus, each one has his or her own personal account and in turn holds an account for both of you where the corresponding deposits are made for the expenses of the family unit.
Having all your money covered by the FDIC
In the event that you have an accumulated fortune that exceeds $250,000 USD, you will need to have another account in another bank to keep your money insured.
This is because the Federal Deposit Insurance Corporation (FDIC) covers a maximum of $250,000 per account holder per bank, so if you have a larger amount in one financial institution, whether in checking, savings or CDs, you will only be covered up to that limit.
Have more options to manage your money
Many people or merchants need to have more than one instrument for their daily operations. Since savings and money market accounts have certain limitations on monthly withdrawals, it is feasible to have more or supplement with a checking account.
In this case, we suggest you set specific goals for retirement, savings or investment actions to keep your personal finances healthy.
Get more benefits
As part of their commercial strategy, banks always make promotions about advantages of contracting their products. You may want to take advantage of interest on a savings account, the fact of having an ATM closer to your home or workplace, a welcome bonus and more.
Separate business from personal
It makes a lot of sense to differentiate personal expenses from those related to your business. Many entrepreneurs do not see the importance of this strategy and end up compromising their business and personal capital.
In addition, this administrative division helps you better understand your profitability and makes it easier to deduct expenses at tax time.
Saving for different projects
One of the fundamental reasons for having multiple accounts involves personal goals. Whether it's buying a house, going on a trip, starting a business or building up an emergency fund, these things require you to be organized.
In this situation we recommend using money market accounts, savings accounts or CDs if you have a plan and want to execute it from start to finish.
If you find it confusing, simplify
Having several accounts might be beneficial for some, but for others it might not be such a good idea. In any case, the ideal is to have 4 or 5 financial instruments that serve to efficiently structure your personal finances.
You can take advantage of a checking account for daily expenses, an IRA for retirement, a savings or money market account for emergencies and a certificate of deposit to rise your savings.
If having this variety of accounts becomes confusing or complicates your life, it's best to simplify matters. The other difficulty is that you'll have to deal with the bank's conditions, which may require a minimum balance or a direct payment, leading to fees you don't want to deal with often.
We think the minimum essentials for someone with solid finances include a savings account and a checking account. If the products you manage now don't give you what you need, you can always turn to Busconomico's comparator to find the most attractive instruments.
English: Para qué puede servirte disponer de varias cuentas bancarias