Moneyadviceblog » Budgetingtitle_li=Budgettitle_li=Money » How Many Bank Accounts Should I Have?

If you want to get your finances right, you may have thought about getting another bank account. This is very common to think about having different bank accounts, which is something serious that you should consider.

So, you may be asking yourself how different bank accounts may be an advantage; in this article, we will teach you why it is important.

Look At Your Goals

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The best way to look at your bank accounts is to have a goal or purpose. You should have a ‘main’ account where your paycheck will be deposited and maybe another for spending and saving.

It will help you have better clarity, and you won’t be digging into your savings to pay for your groceries. It will be easier to stick to your budget.

How Many Bank Accounts Should I Have?

How many accounts can you have? Or how many should you have? There are so many options when it comes to bank accounts, there are different types of bank accounts, and depending on the institutions, you may have up to 5 accounts.

But, you cannot have 5 accounts without having a real purpose for each one of them. So, let us go through the different purposes that you may find interesting.

1. Checking Accounts

This is the basic account that every bank will provide you as you register yourself as a client in their institution.

Your checking will be mainly for your everyday expenses and to pay bills. It is the fastest access to your money compared to saving accounts that usually have limits and allow you to access a certain amount of money over a time-lapse.

Some accounts will need you to deposit a minimum amount, while others have monthly fees services.

If you own a business, you may have different checking accounts or want a different account for bills and regular personal spending. Having different accounts for bills and fun money can be very advantageous to ensure that all of your bills are covered every month.

It will help you guard yourself against overspending and blowing off your bills.

2. Saving Accounts

There are different types of saving accounts;

Regular saving accounts; This is one of the basic accounts to store your money- most banks will allow you to store some funds with little interest and withdraw the money at any time.

Online savings account; There are more online-only banks now; these banks typically offer sweeter deals with higher interest rates and low monthly fees (if any at all). It allows you to have quicker service with a touch on your smartphone.

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Certificate Of Deposit

This one is quite similar to a saving account, except your money is frozen in the account for an estimated time between 6 to 18 months; it all depends on the terms you have selected.

If you need quick access to your money, this is not the perfect match for you, you should revise your options, but if you need a high-interest rate and do not need that money right now, then this is exactly what you need in your life.

Money Market Account

A money market account allows you to have a higher interest rate than a saving account while still making purchases. So, if your goal is to save, this one is for you.

There is a lot to talk about when it comes to bank accounts; some may think that they are trivial, but they all serve a different purpose, and you should be able to know what the best account for you to benefit from all the advantages that they may offer you. Let us know in the comments if you want to read part 2 of this article….