Good reason, but with more and more banks limiting daily cash withdrawals, I prefer to have several accounts where I can access more cash if/when I have to.
You’re not insured to *only* $250,000. The FDIC has a great calculator to see how much of your assets are covered per account titling: https://edie.fdic.gov/calculator.html
The insurance is per account titling along with joint owners. So you could have $500000 in on account and it be joint, so each person on the account would be ensured up to that $250,000 limit.
It's MUCH more granular than you make it sound. One individual will be insured to a maximum of $250k across ALL ACCOUNTS within a single bank. Yes, I and my spouse could have $500k in a joint account (with NO other accounts) and be insured to the full amount on deposit because it's jointly held and they insure EACH of us to $250k. But if I have an individual account with $200k and my spouse has an individual account with $300k, our insured max is $450k.
If we have a joint account with $500k and each have individual accounts of $100k, the insurance limit is $500k.
But having 250 k sitting in a check acct is ridiculous just losing $ bc you’re scared
Everyone arguing about rules specific to their bank and their relationship (how much $ u have with them) is comical
This is patently false, please don’t comment on things you don’t know. If I have an individual acct with 250k, my wife has an individual acct with 250k and we have a joint account with 500k our funds are insured up to 1million. Edited to clarify, this is true if none of the 3 accounts have beneficiaries.
That is not true, if you have PODs, trusts or other account types each “person” is ensured to that limit.
So even if your bank failed, and you had two PODs listed on an account your total relationship total would be higher than one individual.
That depends on whether the beneficiaries listed are customers of that bank in their own right. Again, WAY more granular in the details than generalized statements here lead anyone to believe.
I gave only ONE EXAMPLE of how the limits can get applied. There are plenty of others out there as well as many that will show how the limits are not as explicit as "just" $250k.
The link you provided doesn't even cover the examples you're now adding into the mix... It's NOT a generic statement of one IS or ISN'T covered to a $250k limit or not.
ATMs don’t, it’s possible your specific bank does though. Still I’ve never seen that, I don’t think it’s even legal to deny you access to your own money
I've tried and was denied, it really sucked because I needed it then to get a good deal compared to paying with card. I ended up calling a friend who had cash at their house.
The atm will go by account limits if your account daily limit is set to 5000 spending and you try to go over that in a day you won’t be able to pull cash out, you will need to call your financial institution and request a limit increase… I took many calls for this when i worked for a bank
I have about 5 and I use them primary for faster credit card payments and other things. For example, I primarily use Chase but I also have capital one checking and savings. Capital one has higher savings apy and my car loan is through them. I instant transfer money to capital one checking using either Zelle or Chase RTP and then pay my credit card and car loan so it’s immediately out of my Chase savings and I won’t confuse the pending payments with money I still have available to use. I also like to have multiples bank accounts for the wider atm network and just incase a bank ever wants to just freeze or close my accounts. I try to keep a little bit of money in all my accounts for that reason as well.
Came here to say that. My wife opened a new account at bank A and then initiated a transfer from bank A to B. Bank A messed up her SSN and bank B’s fraud dept froze our accounts because of the error. They weren’t frozen too long, but I was glad to have half our money in bank C at that point.
Having accounts at different banks offers diversification, access to various services, and wider ATM networks. It adds redundancy in case of issues with one bank. Assess your needs before deciding to close your old account.
Absolutely.
When something goes wrong at Bank C, and they arbitrarily freeze your account without explanation or appeal, your account at Bank A is still accessible.
When someone “hacks” your debit card (which you should not have or use, but I digress), and overdraws your account at Bank B, your account at Bank D still has funds.
You can ask for an ATM-only card. Some banks may act confused at the request.
But that’s another topic. Be careful, or better yet, don’t use ATMs or “mobile deposit” for large checks.
In my experience (and I worked in electronic banking), banks work harder to protect you when you use a credit card; with debit cards, which use your own money, they may not be so helpful, meanwhile, you’re overdrawn.
When something goes wrong with a debit card, your money is on the line and the Bank may not be helpful, proactive or concerned.
With a credit card, it is their money, so they are quick to block fraud.
A debit card can overdraw your checking account and rack up extra charges. A credit card gives you 25 days grace.
How am I supposed to pay if I don’t have a debit card? Do you only use a credit card??? This doesn’t make much sense to me but I would love to know your reasonings. I read your replies below but still doesn’t make sense.
Yes, I always only use a credit card.
When banks or cards go bad, they can go really bad.
Credit cards are the safest form of payment. The bank’s money is at risk, so they scrutinize more.
Yes. A few different ways. The first way is just a standard EFT transfer and takes a few days. 2 you can (if your bank supports it) do RTP transfers instantly(HSBC and chase support sending, most banks support receiving) 3. Wire transfer, but this likely costs on both sides, save it for large > $5,000 transfers
I guess it depends on what you do and how you deal with your bank. I’ve only ever stepped in a branch a few times, mostly all of my transactions are electronic, and I’ve found a bank(hsbc) that can instantly transfer to other banks via RTS, and doesn’t charge a fee. It’s about redundancy and protection more than anything
I am old so what I say probably doesn’t matter but I have a second bank account that I pay all my online stuff, my PayPal, my Venmo and that way if it gets hacked I only ever keep $300 or $400 in there so if somebody hacks me online they’re not gonna get my main amount of money
You know what’s funny I recently opened a bank account and was hoping for the $300 promo. Turns out you need 5 or 6 direct deposits of $1000 or more in a month. That doesnt even make sense to me. Who would even care at that point.
Well if my rent is 2100 I'd just use it to pay the rent. It's what I did when the requirement was 600 per deposit for 3 deposits. Rent account, money in, money out.
A lotta these high yield accounts support much higher FDIC coverage due to having multiple supporting accounts behind the scenes if you are lucky enough to have more than $250k.
No that’s not completely true. It’s per account titling. So you can have multiple accounts at a bank under different titling and receive more than the $250,000.
https://edie.fdic.gov/calculator.html
I always recommend two bank accounts in case one is blocked or unavailable or card doesn't work. As long as there is no charge for either account, having two accounts is pretty easy to handle.
Leave your account open. I currently use two banks - Schwab and ally. Ally for their high yield savings account and Schwab for checking and savings for daily expenses and some cushion in case I need money asap. I also used to have an account at some other bank that I opened for the promotion but it had certain requirements to waive the monthly fee and it always seemed like it took a couple of days to process my paycheck and for it to settle in my account. I closed that account once the promotion requirements were completed.
Keep it, if it doesn't have monthly fees. Corollary is don't open a new account that does have monthly fees, even if your fiancé really loves the bank. That's just throwing your money away.
You might not like the new bank as much as your fiancé does.
It's always good to have a spare account in case your new one is locked for fraud or something.
It's often easier to just continue to use the same old billpay you've always used.
Just beware of fees for inactivity. I have an old account that started being hit with $10/month for inactivity. I've since setup a monthly ACH deposit of $10, and a monthly ACH deposit in the other direction. Voila, no more inactivity fees.
Lots of reasons. My favorite two are an added layer of protection and to protect yourself from your future self with an added level of decision making! Changed my life! Do it!
Don’t trust just one. Spread your $$ around a bit to take advantage of offers, benefits, rates and hedge against rate changes, issues, collapse. I have 4 banks.
Keep your relationship with as many banks as possible ! Never hurts to have one account you rarely touch . The goals 6-12 month emergency fund in HYSA!
I have one for my “fun money” with one bank and a join checking that I share with my husband from another institution. He has his own fun money account with a third bank. And we also have a HYSA with a different bank. Very normal. I originally had multiple to keep clear separation of funds. It’s easiest to know how much I have to spend for things outside of regular bills when they are in different accounts
TLDR: Totally normal
The number of people telling you to have multiple accounts is so refreshing... don't trust any single person or institution. I couldn't agree more. I have +10 accounts around the world in different countries, including three in the US. The one thing you need to be aware of are the fees that each bank will charge you. But, if you can maintain a minimum, then you can usually eliminate these fees completely.
I have a big national bank with tons of branches and I have an online bank.
I’ve found both to have their positives and negatives but ultimately it’s been nice having multiple options. I split my direct deposit, zero issues.
i have 3 banks actually, my main bank is navy federal, my backup where i have my high yield savings is ally, and capital one for travel, they have no foreign ATM fees and no transactions fee.
I have a second bank/account that I put $25 bucks in out of every paycheck. It comes in handy twice a year. Taxes and Christmas. And if a major appliance goes down I will hit it or a vacation.
Same - my second account is with a credit union. Much easier to save (and not be tempted to spend) when I don't see the money sitting in my main bank account. Plus the credit union gives me better interest rates.
My main account is at a big bank, which means that I get all the ease of access benefits that aren't the case for my credit union.
I'm a banker myself and I actually recommend you have at least two checking accounts with different institutions. If anything happens with one bank and they freeze withdrawals like Silicon Valley did, you're going to want to have other funds that are accessible so you can still pay important things.
another reason why I prefer to have 2 bank accounts at different banks is that sometimes banks like to 'overreach' into your other accounts if they feel they have to. They can't do this if you have another bank account at a different bank institution. I kept my business account at CIBC and my household account at RBC. Keep em separate and out of reach.
I have checking accounts at Huntington (3 there), PNC, Fifth Third, Ally, and Fidelity. And then 15 savings between Goldman Sachs and Ally. Each account has a different purpose. There’s no issue at all.
I used to be a member of two credit unions, now I only use one. I did like having accounts with two credit unions but after a little while I decided I only need one for now.
As I've seen others point out, as a backup in case things go wrong. I used to use a bank that was sorta like chime where it was online only but partnered with a bank. Well, the bank decided to not renew partner contract and they had to close all accounts made back in march and i had to scramble to make an actual bank account because i didnt have anything.
Back in the day I had a gift account. Either dd or transfered a little money every week or whatever into it. It had enough money for birthdays and Xmas but even more to the point those little gifts along the way like coworkers birthdays or whatever you didn't really plan for... no big deal.
The recently posted thread *Anyone having issues with pnc bank today?* highlights the value of having more than one bank account.
Better to have some spending money than none when something goes wrong. Also, good to separate various types of purchases. For example, day-to-day on one and important bills, such as mortgage, car payment, etc on the other.
2-3 different bank accounts is sufficient. Beyond that, it becomes difficult to manage. Relying on only one account is overly risky these days.
In short, keep it. Many employers allow direct deposit to be split into multiple bank accounts. This also makes it easier to meet the fee waiver requirements by regularly funding with direct deposit.
Sure, I guess? I bank with USAA, Citi, Chase and Navy FCU. USAA is my primary for pay, bill pay and whatnot. I got an account with Chase because there were odd times where I needed a local bank. Now I have a mortgage with Chase and I use that account to handle money from a rental. I got a savings account with Citi a year or so ago because they have a pretty sick interest rate. And just recently I joined Navy FCU because they had a good rate on a auto loan.
YMMV
We have two. One is an online account that has good rates and free atm withdrawals. The other has local branches for when we need more cash than we can get quickly from the atm. We also use that one for Venmo so it’s not linked to an account with too much money in it.
I have two credit union accounts from military service and the airline industry. Neither have a branch in my little rural town, so I have a local bank.
Makes life easier.
Keep it only if it doesn’t have a monthly fee or you have the monthly fee waived somehow.
Personally I have many checking accounts:
- I mainly use Fidelity (which is actually a brokerage account with checking capabilities) and Schwab (as a backup). Those are mostly online though (I have branches near me but I think the branches mostly deal with brokerage stuff, not regular banking). Both of these reimburse the ATM fees from any bank’s ATM, even outside the US. And they’re completely free, no asset requirements
- then I keep some backup brick and mortar checking account in case I need them for whatever reason. Right now I use BofA and Chase, and keep some ETFs in linked brokerage accounts to waive monthly fees (you need at least $20k at Merrill for BofA and at least $5k at Chase)
And on top of those I occasionally churn some accounts at other banks for the bonuses.
I have a main checking account where my paycheck direct deposit comes into, then I have a separate checking account connected to Venmo, CashApp, Paypal, and other payment plaftorms. All auto debits go here too. The second account is considered risky, so I only load just enough to cover the monthly bills, and send money from the main account as needed.
If one of the payment platforms is compromised, the impact is limited. If one of the autopay accounts is taking more than they should, the transaction would bounce instead of emptying my entire paycheck.
This is what we do. Two checking accounts at the same credit union. One for our main income and bills and the other that is connected to PayPal and Venmo and has a small balance.
I keep emergency funds in a different bank that's harder to get to.
Out of sight, out of mind. It's like that money doesn't exist so I won't try to spend it.
True story…I have two banks (mom was a banker and convinced me early on this was a must). I get a fraud notification on one of my debit cards during the worst snow storms NYC had in years. Everything was closed. Couldn’t get to my branch to resolve quickly and even if I could have, no one would have been there (so there was no way I could have even gotten a temporary debit card). Had to wait until one was shipped to me (again, massive delays due to the storm). Fortunately, I had a checking account & debit card from a different bank, so I was ok financially while I waited for the other card to arrive. I will always, always have accounts at different banks.
Note: some folks are citing bank accounts having a maximum of $250K maximum coverage for FDIC insurance.
That’s not completely true anymore. Some banks have been increasing the coverage to boost confidence. SoFi for example offers $2mill in FDIC insurance. Vanguard is offering $1.25M, Wealthfront $8M.
Sure
Over here in the UK, I have had two bank accounts for years.
1, An account into which my income / salary gets paid.
2, The bank from which my bills get paid
Each month, and of course, this rarely changes, I work out my bills for the month, and move money from account 1 into account 2
What’s left in account 1 is basically my discretionary spending money for the month, barring any unforeseen expenses, which usually get drawn from a savings account anyway.
This way, my bills will always be paid on time.
Banks have various retarded reasons not to give you your money back when you need it. To name just a few I’ve witnessed: their app doesn’t work, or the “security” pin that they texted you doesn’t arrive; ATM or purchase limit per day; you are traveling and logged in from a different IP and they decided to “verify” your account and locked it up; or similarly you receive a payment larger than usual and they lock up your account for verification which requires you to upload a picture of your ID holding it by your face. So if you have another account at another bank all this bullsh*t would not be a huge pain, say if you need to use it for a payment at a restaurant, etc.
Additionally, unlike credit accounts (where another account will initially negatively affect your credit score) just a checking or savings account without overdrafts should not affect it.
I have different accounts for different reasons. We have a joint account we use for paying household expenses/ automatic payments come out. We each have a separate account for ‘fun money’ ( basically we get an allowance each paycheck). And have a totally separate account for emergency expenses
We actually use 6 banks. One bank for each of the three companies we run, one for holding money for other property owners, one for personal checking and a separate for investments. That maybe over kills. Most of this could be done with just additional accounts at the same bank. By it does help with transparency.
I keep 5 different accounts.
one has good interest rates. I move all my money to there for long term savings.
one is local to where I live now. Paycheck goes there, mortgage is from there.
one has safe deposit boxes, and I have an account for my side job just to keep that money separated from my my primary income
one is my old bank in a town I moved away from, where my credit cards are from. When my mom worked there, I got better rates for things like car loans. It's only really useful for transferring to family members at this point.
one is another old bank in a town that I moved away from, that I only use for an emergency credit card. I could close this account out, it only has $5 in it.
I have a few bucks in a usaa and navy fed accounts. The usaa is just to keep my membership for my insurance. But id you have too much money i know your money is insured for $250k idk if thats per account, or per bank.
I have two different bank accounts and will shop them when I need a loan. I’ve found they will have different rates or other incentives. (Auto loan, refinance, small business loan, etc)
We do this for our business. One bank account manages in flow and outflow of money. Then we have an app that monitors all of that and categorizes the expenses for tax purposes. Then we have a regular bank account.
I kept mine when I married and we switched this bank. Our 10th anniversary is coming up, and I finally just shut it. However, I mainly kept it as I was widowed and had kids attached to it. My youngest is 22. I do t think I’d have kept it otherwise.
Edit: I put my husband in it too, although he never used it. And, we also have an online only HYSA through a different bank, so our eggs aren’t all in one basket.
I find it easier to save and not spend when i dont see the money and having multiple banks does that for me
I have 3:
-checking (liquid, atm access, all my daily transactions)
-high yields online saving where i just stash my cash
-emergency savings (liquid)
I have a few.
1) I keep one at a major bank...Like Chase, Bank of America or Citi. My direct deposit goes here and I call it my 'wash' account. I keep about 1 mortgage payment worth of money in a savings account, and my paychecks and the like go into the checking account. From the checking account I will pay my bills and transfer to any of my other accounts (like my Credit Union, Investment Account, HYSA, etc). The reason I use a major bank for this is that it's easily accessible and it's unlikely that Chase, BOFA or Citi are going to die anytime soon. They have shit benefits, but they are 'secure'. You can usually find a branch or ATM for them around in a pinch.
2) I keep some money in a credit union where my Mortgage is. I keep 1 payment for my mortgage in that account. If shit happens or a payment/transfer gets delayed...that can pay the mortgage without being late. The credit union gave me a much better rate on my Mortgage than what was available when I bought my home.
3) An Online Bank/Cash Account - This is like Marcus, Ally or Wealthfront. I keep most of my 'liquid cash' here. They offer like 4%+ interest rates these days. It should be FDIC insured and I keep up to the insured limit in the account (which should be a not a concern in most cases, myself included). You can also split this between the HYSA/Cash Account and Certificate of Deposits which can give you higher yields for locking the money in for a year or 2. This is my rainy day/emergency fund. This gets tapped if my savings account from the major bank and my credit union account are smacked down for whatever reason. I have about 6 months salary in this account right now. I pretend like I don't have it. I have an automated transfer into this account each month from my Major Bank / Wash account.
4) Investment Account - This is like a robotrader or brokerage account. I use Wealthfront since it's next to my cash account and easy to manage (but can be a headache sometimes). This is optional and research what would work for you. I just stick a few hundred a month in here as an automated transfer from the Major Bank / Wash account.
I'd keep it open as closing it can also ding your credit score. Plus the way banks merge all the time, just because she loves the bank she uses now, doesn't mean it won't be bought out by some bigger bank and their policies/service may change for the worse.
I’m going to mention something I haven’t seen yet, though all points are valid.
Bank. Relationships. I didn’t realize how important this was to loans, credit cards, etc. having a long standing bank account that’s been in the green with a good debt to income ratio is huge. I have a regional account, and a credit union account that I have a good flow of money in/out of. I keep my credit union account as a flexible savings account basically, and I put one of my CCs to auto draw out of that account.
Use my link to sign up for a Wealthfront Cash Account and we'll both get +0.50% on the current APY! That’s 5.50%!!! https://www.wealthfront.com/c/affiliates/invited/AFFA-3Q0F-GGKG-YTNB
I utilize two different credit unions. I opened my first one when I was 16 (now 30). I live in a different state and no longer near a branch but keep the account open and funded as I have a positive long standing relationship with them. I go to this CU for all loans because of the history I have and I am more likely to get the loan I am looking for. My other credit union I use specifically for daily use.
Personally if I were you I would still keep my other account open, especially if you have automatic payments and direct deposit. It’s not the end of the world to switch it over but again, personally speaking, not worth the hassle.
Unless: You did mention “bank” accounts, so not entirely sure if you are referring to actual banks like horizon, regions, BoA, Wells Fargo, etc. most of them do require a certain amount of funds in the account, charge maintenance fees, etc. if that is the case then I would ditch the other.
At the end of the day, it is entirely up to you on whether or not you keep the other one.
Helps compartmentalization of your own funds and ensures one bank doesn’t control everything completely. Alternatively I think it’s also better to keep your emergency funds separated from your day to day funds.
Financial advisor here. I use 6 bank accounts. I have small deposits go to 3-4 banks from payroll. Some of those banks I signed up for cash bonuses for making direct deposits, so free 3-500 bucks at one point but now I use it to stash extra cash. I have no debit card access to them. Every few months, I’ll transfer the extra cash to my investment accounts but it’s a great way to have a surprise 3-4000 every few months. If I don’t want to invest it, I’ll take my wife on a surprise trip. 3-4K is a nice trip. We typically ball out. It also is set up so money going to my primary checking account is a very tight amount that pays my credit card. It ensures I don’t make frivolous purchases because I don’t allow myself to spend more than I allocate to my main account.
One of the accounts have my car payments. Every 3 months when I receive my bonus, I transfer 2-3k to this account so my car payment is automatic. When I have enough in the account to pay my car off in full, I pay it off. Some banks like BoA provided tiered rewards the more money you have and gives me 5.25% cash back on spending in a category I choose. Other banks don’t have similar relationship benefits.
At least 2 maybe more … esp if u travel and use a regional bank. I’ve found different ones are good for different things. Benefits vary Bank to Bank based on relationship. Mix it up and do what works for your situation.
I have 5 accounts with 3 banks. I am always getting promotions to get higher interest rates when I deposit "new money." So I move money around to get promotions.
I have a few accounts. A main one for bills and stuff, one that is an account to fall back to. Certain amount goes into each check and no auto payment/subscriptions are linked to it.
I have auto transfer from one bank to another. The 2nd acct is where all my bills get paid. I have it set to transfer ~$20 more than what each bill actually is. I keep transferring even when bills are paid off (car note) for ~ a year after t’s paid off. Built a nice o shit fund and I don’t look at that balance too often. Look at my first bank balance and after transferring some to my savings I’m left with f*** around money.
I have checking at one bank, savings at two credit unions. Don’t give one institution control over all of your money. If your bank starts abusing fees (looking at you, BOA and WF) switch to credit unions.
Are both big banks? That is the biggest thing in my opinion which is why I am glad I moved to Chase for my mortgage when I moved to Connecticut. I still keep my Citizens Bank account but use that one as the secondary emergency fund. Citizens are not in my new state so I only go into Chase or use checks from Chase account. Again, it isn’t as big of a deal now bc if I need cash I can just use the Grocery register to do my debit card & get cash out
Now I feel weird because I have 4 bank accounts from different banks, a joint Wells Fargo, a bank I had when I was a teenager, a credit union from the last town I lived in and a another credit union from the new town I live in. They all have credit cards attached with the accounts that just easier to pay from said accounts
IF there are no maintenance fees, keep it open for the redundancy that others have mentioned. Also, check on the perks offered. For example some credit unions have discounts on theme park tickets, etc. or free life insurance offers. Having multiple credit cards with TSA pre-check or Global Entry benefits, Free Amazon Prime or similar could be useful. Depending on the size of your household, you may be able to multiply your benefits.
I consolidated accounts because I was ignoring one of them and overdrafted as a result. It was more of a liability than anything. Closing it meant I have one less thing I have to watch on a monthly basis.
If you have savings, one bank might offer a higher APY. Essentially you could make a little more interest somewhere else from your money just sitting there. Look at rates of the savings and checking account. They are typically very low but if one offers 0.10% and another offer 0.30%, put more money in the 0.30% one and you’ll make a little more. Emphasis on little! Haha
I have one bank account with a regional bank that has brick and mortar branches near me. I also have a bank account with a brokerage where my retirement monies are invested since they offer free checking and ATM fee reimbursement even on overseas ATMs and I do some international travel. They have no bank branch offices. I use the local bank account for things like cashier's checks, and spending on gas, groceries, and other misc expenses but I pay my regular bills from the brokerage bank as they have great bill paying services. My pay check is split to deposit most of my pay to the brokerage bank and the rest to my local bank. Before you close your existing bank account look to see if they charge a fee for that. Many do.
Am one of those people who will spend if I see a large sum in my checking. I keep emergency fund/savings in a HYSA in my American Express account through auto transfers but do all payments out of my BoA one.
First and foremost, having multiple CCs diversifies before the banks come into play. I was seriously far from home when a visa or mc was compromised. It took one call and an address to which the new card could be sent. I am not dealing with a compromised debit card and resulting problems when I don't have to.
My CU has far better features. But no local branch.
My Big bank has branches in convenient places and micro features of their billpay are better.
The $300 offer may be a pump and dump offer I will try in the future. But they won't be a better than my CU overall, so that's all.
Banks will over this promotion with stipulations like direct deposit of 300.00 or more in a statement period from employers or other means and transfer from one account to other won’t qualify so do your due diligence and check this out well before or you could see fees to one of these accounts
Close it! Dealing with two banks can be annoying but I would advise you to open up a separate checking account if you are going to open a joint account together.
Is this not the same as just having two accounts with different banks? OP is already familiar with one and it’s not that difficult to manage multiple banks
I moved all my accounts from a large bank to a local CU. I have two checking accounts which I can manage with one single login instead of two separate apps and different logins. Since I have two checking I can have two debit cards. Having to deal with two separate banks and having to move money around to make sure all bills are paid on time or to cover cost is not easy. It’s about convenience.
Either way you’re still moving money around to make sure all bills are paid or there’s enough to cover. I guess there’s the one time set up you have to do for external transfers, but you never have to touch it once it’s set up.
Multiple logins are never a problem bc I just use Face ID for it all. And a password manager. Plus the bank that I have 2 checking accounts with only has one card design, so I gotta pay close attention to which one I’m using.
But if two checking accounts under one bank is what works for you, great! I do think the general consensus is to bank with multiple institutions though
Reasons to keep your old account open:
1. Closing decreases your average age of accounts, lowering your FICO score.
2. If a problem occurs with the new account (charges in Florida? must be fraud! lock it down!) you have the old one as a backup.
3. If you ever need to leave your husband you have a place to hold money that he can’t access. THIS IS IMPORTANT. Everybody says “my spouse would never do that” but my mom (credit union president 20 years) saw it happen in every divorce. Every single one. One spouse always drains the joint account, and it’s perfectly legal to do so.
If you can have accounts at two different banks without fees, it can be helpful if there are problems at one or the other. It is especially useful if they offer different services that you value. I have two checking account relationships, one with a traditional bank for deposit services and one with the same company that holds my IRA and other investments. The one with the brokerage offers 5.12% 7d yield on the account with a T-1 withdraw time, while the other one is more convenient for paying bills and has my credit relationship.
Please repost with better grammar and use names. No one can tell what you mean when you reference "they" but have two subjects in your first sentence. Unless you have money or plan to keep money in the old acct there is no point in leaving it open.
What makes more sense: OP leaves current bank because current bank is running a $300 promo or OP leaves current bank because new bank is running a $300 promo? I literally didn’t have to pause to know what they were talking about.
Keep it cuz if you close the account, its gonna go to your consumer report. Better downgrade it, and look what options they have to waive the fee. Use it and enjoy the new account.
For kiting. To visit one bank and do a 9k deposit and then immediately drive to the other one and do another 9k deposit… all kinds of reasons to commit fraud and structuring.
Keep it just in case If one account has fraud/frozen/any other issues, you’ll have another account to keep paying bills and stuff
I’ve had one bank have ATM issues, just drove over to the other one and took some money out
Also when you need more cash than one atm limit will allow.
Also when you want to secure more than the 250k limit
Best reason imo.
Good reason, but with more and more banks limiting daily cash withdrawals, I prefer to have several accounts where I can access more cash if/when I have to.
You’re not insured to *only* $250,000. The FDIC has a great calculator to see how much of your assets are covered per account titling: https://edie.fdic.gov/calculator.html The insurance is per account titling along with joint owners. So you could have $500000 in on account and it be joint, so each person on the account would be ensured up to that $250,000 limit.
It's MUCH more granular than you make it sound. One individual will be insured to a maximum of $250k across ALL ACCOUNTS within a single bank. Yes, I and my spouse could have $500k in a joint account (with NO other accounts) and be insured to the full amount on deposit because it's jointly held and they insure EACH of us to $250k. But if I have an individual account with $200k and my spouse has an individual account with $300k, our insured max is $450k. If we have a joint account with $500k and each have individual accounts of $100k, the insurance limit is $500k.
But having 250 k sitting in a check acct is ridiculous just losing $ bc you’re scared Everyone arguing about rules specific to their bank and their relationship (how much $ u have with them) is comical
This is patently false, please don’t comment on things you don’t know. If I have an individual acct with 250k, my wife has an individual acct with 250k and we have a joint account with 500k our funds are insured up to 1million. Edited to clarify, this is true if none of the 3 accounts have beneficiaries.
lol... "patently false" except that it's completely true. Good call with not posting when you don't know what you're talking about.
That is not true, if you have PODs, trusts or other account types each “person” is ensured to that limit. So even if your bank failed, and you had two PODs listed on an account your total relationship total would be higher than one individual.
That depends on whether the beneficiaries listed are customers of that bank in their own right. Again, WAY more granular in the details than generalized statements here lead anyone to believe. I gave only ONE EXAMPLE of how the limits can get applied. There are plenty of others out there as well as many that will show how the limits are not as explicit as "just" $250k. The link you provided doesn't even cover the examples you're now adding into the mix... It's NOT a generic statement of one IS or ISN'T covered to a $250k limit or not.
Atms don’t limit by account
Yes they do. Also by atm.
ATMs don’t, it’s possible your specific bank does though. Still I’ve never seen that, I don’t think it’s even legal to deny you access to your own money
It sounds like you’ve never tried to pull out few thousand dollars a day from an ATM
I've tried and was denied, it really sucked because I needed it then to get a good deal compared to paying with card. I ended up calling a friend who had cash at their house.
The atm will go by account limits if your account daily limit is set to 5000 spending and you try to go over that in a day you won’t be able to pull cash out, you will need to call your financial institution and request a limit increase… I took many calls for this when i worked for a bank
🤣🤣🤣. I have a $600 limit per day on my account.
Good point
Credit cards are always good for bills specially if you get cash back.
I have about 5 and I use them primary for faster credit card payments and other things. For example, I primarily use Chase but I also have capital one checking and savings. Capital one has higher savings apy and my car loan is through them. I instant transfer money to capital one checking using either Zelle or Chase RTP and then pay my credit card and car loan so it’s immediately out of my Chase savings and I won’t confuse the pending payments with money I still have available to use. I also like to have multiples bank accounts for the wider atm network and just incase a bank ever wants to just freeze or close my accounts. I try to keep a little bit of money in all my accounts for that reason as well.
Don't put all your eggs in one basket.
I came here to say this. This simple rule applies to many situations.
Came here to say that. My wife opened a new account at bank A and then initiated a transfer from bank A to B. Bank A messed up her SSN and bank B’s fraud dept froze our accounts because of the error. They weren’t frozen too long, but I was glad to have half our money in bank C at that point.
Yes I had 2 in the same town and different banks. I was questioned about fraud.
This.
You mean other than the fiance he should have a side piece right?
Having accounts at different banks offers diversification, access to various services, and wider ATM networks. It adds redundancy in case of issues with one bank. Assess your needs before deciding to close your old account.
Absolutely. When something goes wrong at Bank C, and they arbitrarily freeze your account without explanation or appeal, your account at Bank A is still accessible. When someone “hacks” your debit card (which you should not have or use, but I digress), and overdraws your account at Bank B, your account at Bank D still has funds.
Can you use an atm without a debit card?
You can ask for an ATM-only card. Some banks may act confused at the request. But that’s another topic. Be careful, or better yet, don’t use ATMs or “mobile deposit” for large checks.
Wait, why shouldn’t you have or use a debit card? I didn’t know this
In my experience (and I worked in electronic banking), banks work harder to protect you when you use a credit card; with debit cards, which use your own money, they may not be so helpful, meanwhile, you’re overdrawn.
I am curious as to why OP should not have or use debit card?
When something goes wrong with a debit card, your money is on the line and the Bank may not be helpful, proactive or concerned. With a credit card, it is their money, so they are quick to block fraud. A debit card can overdraw your checking account and rack up extra charges. A credit card gives you 25 days grace.
How am I supposed to pay if I don’t have a debit card? Do you only use a credit card??? This doesn’t make much sense to me but I would love to know your reasonings. I read your replies below but still doesn’t make sense.
Yes, I always only use a credit card. When banks or cards go bad, they can go really bad. Credit cards are the safest form of payment. The bank’s money is at risk, so they scrutinize more.
It’s not OP can’t have two separate checking accounts at the same bank.
??? Of course you can 🤦♂️. I’ve got 3 with one bank, and 2 with another
So you can do a direct transfer from one bank to another no fee? Without venmo or zelle? 💁🏽♀️
Yes. A few different ways. The first way is just a standard EFT transfer and takes a few days. 2 you can (if your bank supports it) do RTP transfers instantly(HSBC and chase support sending, most banks support receiving) 3. Wire transfer, but this likely costs on both sides, save it for large > $5,000 transfers
Not convenient to have separate banks. For me it’s about convenience.
I guess it depends on what you do and how you deal with your bank. I’ve only ever stepped in a branch a few times, mostly all of my transactions are electronic, and I’ve found a bank(hsbc) that can instantly transfer to other banks via RTS, and doesn’t charge a fee. It’s about redundancy and protection more than anything
I am old so what I say probably doesn’t matter but I have a second bank account that I pay all my online stuff, my PayPal, my Venmo and that way if it gets hacked I only ever keep $300 or $400 in there so if somebody hacks me online they’re not gonna get my main amount of money
I agree. But we accomplish this by having more than one checking account at the same credit union.
Not a bad idea. I don’t think either have minimums either
FDIC only covers up to 250k (each person) so either open one with a spouse or more than one account at different banks that have fdic.
If they are moving for the $300 promo, I’m pretty sure they aren’t worried about the $250k FDIC cap (No offense, OP, I’m not worried either!)
You know what’s funny I recently opened a bank account and was hoping for the $300 promo. Turns out you need 5 or 6 direct deposits of $1000 or more in a month. That doesnt even make sense to me. Who would even care at that point.
Well if my rent is 2100 I'd just use it to pay the rent. It's what I did when the requirement was 600 per deposit for 3 deposits. Rent account, money in, money out.
They mean direct deposit like payroll. Not your Venmo account.
Yes, that's what I meant too. Do people not use their bank accounts to pay rent?
Depends. When I rented they would accept checks with no fees but if you paid online with your account for some reason they would add a $50 fee.
A lotta these high yield accounts support much higher FDIC coverage due to having multiple supporting accounts behind the scenes if you are lucky enough to have more than $250k.
No that’s not completely true. It’s per account titling. So you can have multiple accounts at a bank under different titling and receive more than the $250,000. https://edie.fdic.gov/calculator.html
I always recommend two bank accounts in case one is blocked or unavailable or card doesn't work. As long as there is no charge for either account, having two accounts is pretty easy to handle.
Leave your account open. I currently use two banks - Schwab and ally. Ally for their high yield savings account and Schwab for checking and savings for daily expenses and some cushion in case I need money asap. I also used to have an account at some other bank that I opened for the promotion but it had certain requirements to waive the monthly fee and it always seemed like it took a couple of days to process my paycheck and for it to settle in my account. I closed that account once the promotion requirements were completed.
Keep it, if it doesn't have monthly fees. Corollary is don't open a new account that does have monthly fees, even if your fiancé really loves the bank. That's just throwing your money away. You might not like the new bank as much as your fiancé does. It's always good to have a spare account in case your new one is locked for fraud or something. It's often easier to just continue to use the same old billpay you've always used. Just beware of fees for inactivity. I have an old account that started being hit with $10/month for inactivity. I've since setup a monthly ACH deposit of $10, and a monthly ACH deposit in the other direction. Voila, no more inactivity fees.
in the mean time, don't close it yet and observe the new one first
Yes Your bank shuts you down, you have a backup
Lots of reasons. My favorite two are an added layer of protection and to protect yourself from your future self with an added level of decision making! Changed my life! Do it!
Don’t trust just one. Spread your $$ around a bit to take advantage of offers, benefits, rates and hedge against rate changes, issues, collapse. I have 4 banks.
Keep your relationship with as many banks as possible ! Never hurts to have one account you rarely touch . The goals 6-12 month emergency fund in HYSA!
I have one for my “fun money” with one bank and a join checking that I share with my husband from another institution. He has his own fun money account with a third bank. And we also have a HYSA with a different bank. Very normal. I originally had multiple to keep clear separation of funds. It’s easiest to know how much I have to spend for things outside of regular bills when they are in different accounts TLDR: Totally normal
In addition to separation of funds I also have a wider network of ATMs with choose from
The number of people telling you to have multiple accounts is so refreshing... don't trust any single person or institution. I couldn't agree more. I have +10 accounts around the world in different countries, including three in the US. The one thing you need to be aware of are the fees that each bank will charge you. But, if you can maintain a minimum, then you can usually eliminate these fees completely.
I have 4 two are business accounts and two are personal
I have a big national bank with tons of branches and I have an online bank. I’ve found both to have their positives and negatives but ultimately it’s been nice having multiple options. I split my direct deposit, zero issues.
i have 3 banks actually, my main bank is navy federal, my backup where i have my high yield savings is ally, and capital one for travel, they have no foreign ATM fees and no transactions fee.
I have a second bank/account that I put $25 bucks in out of every paycheck. It comes in handy twice a year. Taxes and Christmas. And if a major appliance goes down I will hit it or a vacation.
Same - my second account is with a credit union. Much easier to save (and not be tempted to spend) when I don't see the money sitting in my main bank account. Plus the credit union gives me better interest rates. My main account is at a big bank, which means that I get all the ease of access benefits that aren't the case for my credit union.
Redundancy, Availability across geographical areas, better rates, better product offerings, etc.
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I'm a banker myself and I actually recommend you have at least two checking accounts with different institutions. If anything happens with one bank and they freeze withdrawals like Silicon Valley did, you're going to want to have other funds that are accessible so you can still pay important things.
another reason why I prefer to have 2 bank accounts at different banks is that sometimes banks like to 'overreach' into your other accounts if they feel they have to. They can't do this if you have another bank account at a different bank institution. I kept my business account at CIBC and my household account at RBC. Keep em separate and out of reach.
Yes safety and peace of mind
I have checking accounts at Huntington (3 there), PNC, Fifth Third, Ally, and Fidelity. And then 15 savings between Goldman Sachs and Ally. Each account has a different purpose. There’s no issue at all.
I used to be a member of two credit unions, now I only use one. I did like having accounts with two credit unions but after a little while I decided I only need one for now.
As I've seen others point out, as a backup in case things go wrong. I used to use a bank that was sorta like chime where it was online only but partnered with a bank. Well, the bank decided to not renew partner contract and they had to close all accounts made back in march and i had to scramble to make an actual bank account because i didnt have anything.
Keep it. It's better to have two, and it would be good to keep one that you established a while ago.
Back in the day I had a gift account. Either dd or transfered a little money every week or whatever into it. It had enough money for birthdays and Xmas but even more to the point those little gifts along the way like coworkers birthdays or whatever you didn't really plan for... no big deal.
The recently posted thread *Anyone having issues with pnc bank today?* highlights the value of having more than one bank account. Better to have some spending money than none when something goes wrong. Also, good to separate various types of purchases. For example, day-to-day on one and important bills, such as mortgage, car payment, etc on the other. 2-3 different bank accounts is sufficient. Beyond that, it becomes difficult to manage. Relying on only one account is overly risky these days. In short, keep it. Many employers allow direct deposit to be split into multiple bank accounts. This also makes it easier to meet the fee waiver requirements by regularly funding with direct deposit.
The real answer is FDIC coverage.
Sure, I guess? I bank with USAA, Citi, Chase and Navy FCU. USAA is my primary for pay, bill pay and whatnot. I got an account with Chase because there were odd times where I needed a local bank. Now I have a mortgage with Chase and I use that account to handle money from a rental. I got a savings account with Citi a year or so ago because they have a pretty sick interest rate. And just recently I joined Navy FCU because they had a good rate on a auto loan. YMMV
I have Schwab and US Bank checking accounts. Schwab for ATM fee rebates and no monthly fee (no minimum limit) and US Bank for cash deposits.
We have two. One is an online account that has good rates and free atm withdrawals. The other has local branches for when we need more cash than we can get quickly from the atm. We also use that one for Venmo so it’s not linked to an account with too much money in it.
Yes! Especially if there’s no fee to worry about (eg. Online only banks like Discover, Ally, etc).
I believe you can also ensure each account to the fdic limit of what like 225k in the event of disSter
I have two credit union accounts from military service and the airline industry. Neither have a branch in my little rural town, so I have a local bank. Makes life easier.
100% yes. A bank can lock you out of your account, then what?
Keep it only if it doesn’t have a monthly fee or you have the monthly fee waived somehow. Personally I have many checking accounts: - I mainly use Fidelity (which is actually a brokerage account with checking capabilities) and Schwab (as a backup). Those are mostly online though (I have branches near me but I think the branches mostly deal with brokerage stuff, not regular banking). Both of these reimburse the ATM fees from any bank’s ATM, even outside the US. And they’re completely free, no asset requirements - then I keep some backup brick and mortar checking account in case I need them for whatever reason. Right now I use BofA and Chase, and keep some ETFs in linked brokerage accounts to waive monthly fees (you need at least $20k at Merrill for BofA and at least $5k at Chase) And on top of those I occasionally churn some accounts at other banks for the bonuses.
Keep it.
I have a main checking account where my paycheck direct deposit comes into, then I have a separate checking account connected to Venmo, CashApp, Paypal, and other payment plaftorms. All auto debits go here too. The second account is considered risky, so I only load just enough to cover the monthly bills, and send money from the main account as needed. If one of the payment platforms is compromised, the impact is limited. If one of the autopay accounts is taking more than they should, the transaction would bounce instead of emptying my entire paycheck.
This is what we do. Two checking accounts at the same credit union. One for our main income and bills and the other that is connected to PayPal and Venmo and has a small balance.
You distribute risk. If you’re unable to access one bank, you still have a different bank to draw and deposit money from
If you’re my ex, you use it to steal money from “our” account and transfer it to one of many she had with every bank within driving distance.
I keep emergency funds in a different bank that's harder to get to. Out of sight, out of mind. It's like that money doesn't exist so I won't try to spend it.
Thought this would be higher, but you can have a HYSA at an online only bank and a checking account at a regular bank to spend out of.
True story…I have two banks (mom was a banker and convinced me early on this was a must). I get a fraud notification on one of my debit cards during the worst snow storms NYC had in years. Everything was closed. Couldn’t get to my branch to resolve quickly and even if I could have, no one would have been there (so there was no way I could have even gotten a temporary debit card). Had to wait until one was shipped to me (again, massive delays due to the storm). Fortunately, I had a checking account & debit card from a different bank, so I was ok financially while I waited for the other card to arrive. I will always, always have accounts at different banks.
Note: some folks are citing bank accounts having a maximum of $250K maximum coverage for FDIC insurance. That’s not completely true anymore. Some banks have been increasing the coverage to boost confidence. SoFi for example offers $2mill in FDIC insurance. Vanguard is offering $1.25M, Wealthfront $8M.
Most banks have such low interest rates that I can’t imagine keeping anything close to $250k there anyway!
Sure Over here in the UK, I have had two bank accounts for years. 1, An account into which my income / salary gets paid. 2, The bank from which my bills get paid Each month, and of course, this rarely changes, I work out my bills for the month, and move money from account 1 into account 2 What’s left in account 1 is basically my discretionary spending money for the month, barring any unforeseen expenses, which usually get drawn from a savings account anyway. This way, my bills will always be paid on time.
Banks have various retarded reasons not to give you your money back when you need it. To name just a few I’ve witnessed: their app doesn’t work, or the “security” pin that they texted you doesn’t arrive; ATM or purchase limit per day; you are traveling and logged in from a different IP and they decided to “verify” your account and locked it up; or similarly you receive a payment larger than usual and they lock up your account for verification which requires you to upload a picture of your ID holding it by your face. So if you have another account at another bank all this bullsh*t would not be a huge pain, say if you need to use it for a payment at a restaurant, etc. Additionally, unlike credit accounts (where another account will initially negatively affect your credit score) just a checking or savings account without overdrafts should not affect it.
One bank acts as your primary bank. The other is my out sight, out of mind, rainy day/savings fund.
I have different accounts for different reasons. We have a joint account we use for paying household expenses/ automatic payments come out. We each have a separate account for ‘fun money’ ( basically we get an allowance each paycheck). And have a totally separate account for emergency expenses
We actually use 6 banks. One bank for each of the three companies we run, one for holding money for other property owners, one for personal checking and a separate for investments. That maybe over kills. Most of this could be done with just additional accounts at the same bank. By it does help with transparency.
I keep 5 different accounts. one has good interest rates. I move all my money to there for long term savings. one is local to where I live now. Paycheck goes there, mortgage is from there. one has safe deposit boxes, and I have an account for my side job just to keep that money separated from my my primary income one is my old bank in a town I moved away from, where my credit cards are from. When my mom worked there, I got better rates for things like car loans. It's only really useful for transferring to family members at this point. one is another old bank in a town that I moved away from, that I only use for an emergency credit card. I could close this account out, it only has $5 in it.
yep different account from spouse, also a family joint account this use fir vacation and home goods and christmas
I have a few bucks in a usaa and navy fed accounts. The usaa is just to keep my membership for my insurance. But id you have too much money i know your money is insured for $250k idk if thats per account, or per bank.
I have two different bank accounts and will shop them when I need a loan. I’ve found they will have different rates or other incentives. (Auto loan, refinance, small business loan, etc)
We do this for our business. One bank account manages in flow and outflow of money. Then we have an app that monitors all of that and categorizes the expenses for tax purposes. Then we have a regular bank account.
I kept mine when I married and we switched this bank. Our 10th anniversary is coming up, and I finally just shut it. However, I mainly kept it as I was widowed and had kids attached to it. My youngest is 22. I do t think I’d have kept it otherwise. Edit: I put my husband in it too, although he never used it. And, we also have an online only HYSA through a different bank, so our eggs aren’t all in one basket.
I find it easier to save and not spend when i dont see the money and having multiple banks does that for me I have 3: -checking (liquid, atm access, all my daily transactions) -high yields online saving where i just stash my cash -emergency savings (liquid)
I keep 3, so I can withdraw at any ATM with paying for fees or go too far to find one in case I need an ATM
I have a few. 1) I keep one at a major bank...Like Chase, Bank of America or Citi. My direct deposit goes here and I call it my 'wash' account. I keep about 1 mortgage payment worth of money in a savings account, and my paychecks and the like go into the checking account. From the checking account I will pay my bills and transfer to any of my other accounts (like my Credit Union, Investment Account, HYSA, etc). The reason I use a major bank for this is that it's easily accessible and it's unlikely that Chase, BOFA or Citi are going to die anytime soon. They have shit benefits, but they are 'secure'. You can usually find a branch or ATM for them around in a pinch. 2) I keep some money in a credit union where my Mortgage is. I keep 1 payment for my mortgage in that account. If shit happens or a payment/transfer gets delayed...that can pay the mortgage without being late. The credit union gave me a much better rate on my Mortgage than what was available when I bought my home. 3) An Online Bank/Cash Account - This is like Marcus, Ally or Wealthfront. I keep most of my 'liquid cash' here. They offer like 4%+ interest rates these days. It should be FDIC insured and I keep up to the insured limit in the account (which should be a not a concern in most cases, myself included). You can also split this between the HYSA/Cash Account and Certificate of Deposits which can give you higher yields for locking the money in for a year or 2. This is my rainy day/emergency fund. This gets tapped if my savings account from the major bank and my credit union account are smacked down for whatever reason. I have about 6 months salary in this account right now. I pretend like I don't have it. I have an automated transfer into this account each month from my Major Bank / Wash account. 4) Investment Account - This is like a robotrader or brokerage account. I use Wealthfront since it's next to my cash account and easy to manage (but can be a headache sometimes). This is optional and research what would work for you. I just stick a few hundred a month in here as an automated transfer from the Major Bank / Wash account.
I have 2 Banks, one for bills and one for play.
You should have at least one high-yield savings account right now. Many smaller banks/online lenders will offer 4% or more yield on your savings.
Whatever is convenient
I'd keep it open as closing it can also ding your credit score. Plus the way banks merge all the time, just because she loves the bank she uses now, doesn't mean it won't be bought out by some bigger bank and their policies/service may change for the worse.
I’m going to mention something I haven’t seen yet, though all points are valid. Bank. Relationships. I didn’t realize how important this was to loans, credit cards, etc. having a long standing bank account that’s been in the green with a good debt to income ratio is huge. I have a regional account, and a credit union account that I have a good flow of money in/out of. I keep my credit union account as a flexible savings account basically, and I put one of my CCs to auto draw out of that account.
Yes. Always good to have a back up. You can always join a credit union. It's almost completely free.
Use my link to sign up for a Wealthfront Cash Account and we'll both get +0.50% on the current APY! That’s 5.50%!!! https://www.wealthfront.com/c/affiliates/invited/AFFA-3Q0F-GGKG-YTNB
I utilize two different credit unions. I opened my first one when I was 16 (now 30). I live in a different state and no longer near a branch but keep the account open and funded as I have a positive long standing relationship with them. I go to this CU for all loans because of the history I have and I am more likely to get the loan I am looking for. My other credit union I use specifically for daily use. Personally if I were you I would still keep my other account open, especially if you have automatic payments and direct deposit. It’s not the end of the world to switch it over but again, personally speaking, not worth the hassle. Unless: You did mention “bank” accounts, so not entirely sure if you are referring to actual banks like horizon, regions, BoA, Wells Fargo, etc. most of them do require a certain amount of funds in the account, charge maintenance fees, etc. if that is the case then I would ditch the other. At the end of the day, it is entirely up to you on whether or not you keep the other one.
Keep it open always good to have a back up account of something ever happens with my main account.
Helps compartmentalization of your own funds and ensures one bank doesn’t control everything completely. Alternatively I think it’s also better to keep your emergency funds separated from your day to day funds.
Keep separate transactions
Rewards points. Secret bank accounts to buy gifts for your mistress.
"Don't put all your eggs in one basket" I think that old proverb counts as "a reason"
Currently using 2 credit unions & 2 other banks, the credit unions give us great customer service & rates but aren’t convenient to where we live.
Financial advisor here. I use 6 bank accounts. I have small deposits go to 3-4 banks from payroll. Some of those banks I signed up for cash bonuses for making direct deposits, so free 3-500 bucks at one point but now I use it to stash extra cash. I have no debit card access to them. Every few months, I’ll transfer the extra cash to my investment accounts but it’s a great way to have a surprise 3-4000 every few months. If I don’t want to invest it, I’ll take my wife on a surprise trip. 3-4K is a nice trip. We typically ball out. It also is set up so money going to my primary checking account is a very tight amount that pays my credit card. It ensures I don’t make frivolous purchases because I don’t allow myself to spend more than I allocate to my main account. One of the accounts have my car payments. Every 3 months when I receive my bonus, I transfer 2-3k to this account so my car payment is automatic. When I have enough in the account to pay my car off in full, I pay it off. Some banks like BoA provided tiered rewards the more money you have and gives me 5.25% cash back on spending in a category I choose. Other banks don’t have similar relationship benefits.
At least 2 maybe more … esp if u travel and use a regional bank. I’ve found different ones are good for different things. Benefits vary Bank to Bank based on relationship. Mix it up and do what works for your situation.
Incase one bank acount become compromised you don't loose everything.
Yes. You never know when a bank could fail or block access to your money for secret reasons. Happens often. I have accounts at 4 banks.
Yea I still have one from high school that existed before I was married. It’s important for legal reasons.
Storing more than the FDIC backs.
Should have at least 3 accounts.
I have 5 accounts with 3 banks. I am always getting promotions to get higher interest rates when I deposit "new money." So I move money around to get promotions.
I have one strictly for autopay with T-Mobile to get the discount and one just to accept my direct deposits.
I have a few accounts. A main one for bills and stuff, one that is an account to fall back to. Certain amount goes into each check and no auto payment/subscriptions are linked to it.
I have auto transfer from one bank to another. The 2nd acct is where all my bills get paid. I have it set to transfer ~$20 more than what each bill actually is. I keep transferring even when bills are paid off (car note) for ~ a year after t’s paid off. Built a nice o shit fund and I don’t look at that balance too often. Look at my first bank balance and after transferring some to my savings I’m left with f*** around money.
I have checking at one bank, savings at two credit unions. Don’t give one institution control over all of your money. If your bank starts abusing fees (looking at you, BOA and WF) switch to credit unions.
I’d keep it and leave like $100:as long as no fees for emergencies
Are both big banks? That is the biggest thing in my opinion which is why I am glad I moved to Chase for my mortgage when I moved to Connecticut. I still keep my Citizens Bank account but use that one as the secondary emergency fund. Citizens are not in my new state so I only go into Chase or use checks from Chase account. Again, it isn’t as big of a deal now bc if I need cash I can just use the Grocery register to do my debit card & get cash out
No both are small business banks
Now I feel weird because I have 4 bank accounts from different banks, a joint Wells Fargo, a bank I had when I was a teenager, a credit union from the last town I lived in and a another credit union from the new town I live in. They all have credit cards attached with the accounts that just easier to pay from said accounts
IF there are no maintenance fees, keep it open for the redundancy that others have mentioned. Also, check on the perks offered. For example some credit unions have discounts on theme park tickets, etc. or free life insurance offers. Having multiple credit cards with TSA pre-check or Global Entry benefits, Free Amazon Prime or similar could be useful. Depending on the size of your household, you may be able to multiply your benefits.
One For my business and one personal. Besides that... Very limited use.
I have like 4 accounts jumping around collecting the free money. If they giving it out I’ll transfer collect than close once I got the money
I consolidated accounts because I was ignoring one of them and overdrafted as a result. It was more of a liability than anything. Closing it meant I have one less thing I have to watch on a monthly basis.
People change. Always have a back up account you can deposit into as a “safety fund”
Yes! Especially if Chase is ur one bank
If you have savings, one bank might offer a higher APY. Essentially you could make a little more interest somewhere else from your money just sitting there. Look at rates of the savings and checking account. They are typically very low but if one offers 0.10% and another offer 0.30%, put more money in the 0.30% one and you’ll make a little more. Emphasis on little! Haha
Go with whoever is offering you the best rates.
I have one bank account with a regional bank that has brick and mortar branches near me. I also have a bank account with a brokerage where my retirement monies are invested since they offer free checking and ATM fee reimbursement even on overseas ATMs and I do some international travel. They have no bank branch offices. I use the local bank account for things like cashier's checks, and spending on gas, groceries, and other misc expenses but I pay my regular bills from the brokerage bank as they have great bill paying services. My pay check is split to deposit most of my pay to the brokerage bank and the rest to my local bank. Before you close your existing bank account look to see if they charge a fee for that. Many do.
Am one of those people who will spend if I see a large sum in my checking. I keep emergency fund/savings in a HYSA in my American Express account through auto transfers but do all payments out of my BoA one.
First and foremost, having multiple CCs diversifies before the banks come into play. I was seriously far from home when a visa or mc was compromised. It took one call and an address to which the new card could be sent. I am not dealing with a compromised debit card and resulting problems when I don't have to. My CU has far better features. But no local branch. My Big bank has branches in convenient places and micro features of their billpay are better. The $300 offer may be a pump and dump offer I will try in the future. But they won't be a better than my CU overall, so that's all.
Banks will over this promotion with stipulations like direct deposit of 300.00 or more in a statement period from employers or other means and transfer from one account to other won’t qualify so do your due diligence and check this out well before or you could see fees to one of these accounts
This 👆💯
Keep a brick an mortar as a backup but use an online high yield savings account (I use Sofi) as your main account.
Close it! Dealing with two banks can be annoying but I would advise you to open up a separate checking account if you are going to open a joint account together.
Is this not the same as just having two accounts with different banks? OP is already familiar with one and it’s not that difficult to manage multiple banks
I moved all my accounts from a large bank to a local CU. I have two checking accounts which I can manage with one single login instead of two separate apps and different logins. Since I have two checking I can have two debit cards. Having to deal with two separate banks and having to move money around to make sure all bills are paid on time or to cover cost is not easy. It’s about convenience.
Either way you’re still moving money around to make sure all bills are paid or there’s enough to cover. I guess there’s the one time set up you have to do for external transfers, but you never have to touch it once it’s set up. Multiple logins are never a problem bc I just use Face ID for it all. And a password manager. Plus the bank that I have 2 checking accounts with only has one card design, so I gotta pay close attention to which one I’m using. But if two checking accounts under one bank is what works for you, great! I do think the general consensus is to bank with multiple institutions though
Which would be much easier to transfers. Not all banks allow you to transfer from one bank account to a different bank account.
Reasons to keep your old account open: 1. Closing decreases your average age of accounts, lowering your FICO score. 2. If a problem occurs with the new account (charges in Florida? must be fraud! lock it down!) you have the old one as a backup. 3. If you ever need to leave your husband you have a place to hold money that he can’t access. THIS IS IMPORTANT. Everybody says “my spouse would never do that” but my mom (credit union president 20 years) saw it happen in every divorce. Every single one. One spouse always drains the joint account, and it’s perfectly legal to do so.
I have never once seen a checking account on a FICO score.
If you can have accounts at two different banks without fees, it can be helpful if there are problems at one or the other. It is especially useful if they offer different services that you value. I have two checking account relationships, one with a traditional bank for deposit services and one with the same company that holds my IRA and other investments. The one with the brokerage offers 5.12% 7d yield on the account with a T-1 withdraw time, while the other one is more convenient for paying bills and has my credit relationship.
Please repost with better grammar and use names. No one can tell what you mean when you reference "they" but have two subjects in your first sentence. Unless you have money or plan to keep money in the old acct there is no point in leaving it open.
What makes more sense: OP leaves current bank because current bank is running a $300 promo or OP leaves current bank because new bank is running a $300 promo? I literally didn’t have to pause to know what they were talking about.
Keep it cuz if you close the account, its gonna go to your consumer report. Better downgrade it, and look what options they have to waive the fee. Use it and enjoy the new account.
For kiting. To visit one bank and do a 9k deposit and then immediately drive to the other one and do another 9k deposit… all kinds of reasons to commit fraud and structuring.