4 Great Reasons to Have Accounts at Multiple Banks

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Why limit your money’s potential? 

It’s great to have choices, and that’s especially true when it comes to banking. There’s a great big world of banks to explore out there. You can keep your money with a traditional brick-and-mortar bank, where you might get to know all the tellers and visit regularly to access a safe deposit box. Or you could stick your cash into an online-only bank, where you’ll be dazzled by the 24/7 customer service chat and slick mobile app. You may even have a reason to dip your toes into offshore banking. Ultimately, it pays to take advantage of multiple banks. Here’s why.

1. It can be easier to save for big goals

If you have a lot of jobs for the money you’re bringing in, having multiple bank accounts with different institutions can be helpful. Let’s say you have a big savings goal, like a dream wedding or buying a house in the next few years. If you have a separate savings account at a different bank than you use for your bill-paying activities, you can funnel the money you’re saving over to the other bank and not have to worry that you’ll accidentally mix it up with the cash to cover your everyday expenses. If you automate savings transfers from one bank to another, it could make meeting your goals even easier.

2. You can keep separate finances if you’re married

If you’re married and intend to keep some of your finances separate from your spouse, you might each consider keeping the original checking account you entered the marriage with, and perhaps opening a joint account at a third bank that you can each add money to in order to pay joint bills like insurance or a mortgage. Having this separation in your finances is good, as you’ll each be free to spend your own money in the ways that make you happy while still coming together for shared financial goals.

Plus, women in abusive relationships are particularly subject to financial abuse (data from the Center for Financial Security at the University of Wisconsin-Madison found that 99% of domestic violence survivors had experienced financial abuse). Having your own bank account at a completely separate bank can offer additional protection.

3. Small business owners have different banking needs

If you own a small business, you’re already well aware of how important money management is to your success. Some banks offer better accounts and services for small businesses than others, so if you’re currently keeping both your personal and business checking accounts at the same institution, diversify! Chances are, your business banking activities are more involved than your personal ones, so find a bank that offers account management tools that can help your business grow and succeed, such as limits on spending for employee debit cards, if you have such a need.

4. You can take advantage of different banks’ benefits

The last great reason to use multiple banks is that you’ll get to reap different perks from different banks. For example, I currently have accounts with both a big national bank as well as a newer online-only bank. The national bank offers a huge variety of services, including auto and mortgage loans and excellent credit cards. It’s very convenient for me to keep bank accounts with this bank, as it’s easy for me to keep track of my credit card accounts with them at the same time.

But my online-only bank offers a high APY on savings accounts, so every time I get paid, I transfer the money I’m saving for quarterly freelance taxes and an eventual home purchase to that account, where I get to watch it grow even faster. If you’re considering opening a new account with a new bank, have a look at the best bank bonuses out there to see if you can make a little extra money in the process.

You work hard for your money, so give it the chance to grow and work hard for you. A great way to do that is by taking advantage of different banks and their account offerings.

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