How many bank accounts do you need? For example, some people keep one checking account and one savings account, both at the same bank.
However, what if you have other savings goals? What about taking advantage of other benefits? Are there advantages to how many bank accounts you can have? According to the experts at SoFi, “While there is no limit on how many bank accounts you can have, how many bank accounts you should have can depend on your organization preferences.”
Multiple Purposes
Having several bank accounts can allow you to save for multiple purposes. For example, if you have one savings and one checking account, you may not feel that your dream vacation fund fits into either type of account.
Having a specific account for a vacation, a big ticket purchase, or an emergency fund can help you achieve that financial goal. So instead of seeing one significant amount of money that you are mentally dividing into small goals, you can visually see your specific account grow. That is powerful, and it helps keep you on track.
Liquid Money
Having multiple bank accounts can give you liquidity. If all of your money is tied to investments, you don’t have access to cash for an emergency. So that extra bank account is an investment. So this is a savings investment that is there if you need it.
Perks
Every bank account offers different perks. Some offer free ATM fees. Others will allow you to use your debit card in foreign countries without excessive fees. Some online accounts have a higher interest rate.
Ideally, you can pair your savings goal with the correct bank account. That account is ideal for your travel account with the low exchange rate fees. The higher interest rate account would be suitable for that emergency savings account. You won’t be touching that money unless it is an emergency. The account with the free ATM fees would be ideal for your regular account. Those fees can be 10 to 20 percent of that $20 you take out of the ATM.
Frequency Of Use
A money market or savings account with a high interest rate may seem appealing, but those accounts can limit your monthly transactions. Therefore, if you need more than the allotted number, this will cause you trouble. You will need a different account for this frequent use.
High Balances
The FDIC will insure your deposits up to $250,000. If you are in that position, you need at least one other bank account. Therefore, you need to be safe with your money.
Long-Term Goals
Many bank accounts cater to short-term goals. However, if your goal is to save for retirement or pay for a vehicle in cash, this is a long-term goal that will require a different bank account.
You will want an account that yields a higher interest rate. That money will sit in the bank. Allow that money to maximize savings with a higher interest rate.
Variety
Some people like to bank in a cornucopia of places. Having a variety of banks will require some organization. But, it will allow you to maximize the opportunities for the best growth possible with your hard earned money.
Getting multiple bank accounts can help you achieve your financial goals. Figure out those goals and add as many bank accounts as necessary to grow your money and achieve your financial goals. Look no further than SoFI Invest (SoFi Bank) to experience premium banking & account services.
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