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You can’t take the decision to open an extra bank account lightly.
Having a bank account is necessary to carry out many transactions and keep your money safe. We believe that if we have another account it will be better for our finances, but this is not always the case. We are going to point out 3 pros and cons of having more than one bank account. In the end, the decision is up to you.
1. Difficult to keep track of your money
If monitoring a bank account already requires time and effort to avoid fraud or unknown movements, having two requires double concentration. If you have money spread over two or more banks , you could neglect one and put your capital at risk.
2. You may incur more fees
When you have one account and manage all your money in it, it’s easier to avoid maintenance fees for the number of deposits and direct transfers you receive. Now just think about your winnings and divide them into two accounts or three. You are more likely to pay fees when splitting your money.
3. Increases the risk of fraud
As noted by USA Today, while any bank account will have strong security and fraud protection measures in place, the more you have, the more likely you are to be a victim of fraud. You give criminals the opportunity to access your money or personal information in more than one place. And if you’re a victim of identity theft from a mobile device, you can compromise all of your accounts at once.
1. You can reach different savings goals
If diversification is about amplifying your savings goals, then it may be a good option. You can have different savings accounts for different goals: an emergency fund, a down payment on a house, travel, among others. You can also have investment accounts for retirement. Certificates of Deposit (CD) are also a term savings option with which you can achieve different goals.
2. You expand your profit opportunities
It’s normal to look for specific things from a bank, you might want competitive interest rates, great customer service, or low fees. As mentioned by MSN Money, an online bank may offer you a higher interest rate on your savings, but not ATMs. You can combine it with a physical bank for the cash you want to have more available to you. In one account your money grows and in the other your capital is available to you.
3. It allows you a better banking transition
According to a study by The Ascent, more than 48% of consumers said they are unlikely to switch to a new bank, even if they have reason to believe it would be better. Opening more than one account allows you to try a new bank while enjoying the benefits of the old one. Having the good of both worlds will make it easier to decide which one is best for you.
Take into account all points of view, but always be clear about your objectives. If it is not necessary to open an extra account, it is best to stick with one bank. If you want to increase your chances of saving, then review the options that exist for you.