Is it really beneficial to have multiple bank accounts? At one point or another, you may have wondered how many bank accounts you should have. With so many checking and deposit accounts to choose from, it can be tricky to decide if you have too few, too many or just enough. The short answer to this conundrum is that the number of accounts you should have depends on your financial goals and your ability to meet account requirements. Read on to discover the benefits and considerations of opening several accounts online and find out which of our accounts will work best for you.
When considering whether or not to open multiple bank accounts, it's important to remember that certain accounts could be more effective for meeting long-term rather than short-term savings goals. Additionally, some accounts offer the benefit of a higher interest rate, while others give you more flexible access to your funds. The challenge when determining how many bank accounts you need is to make sure that all are being used efficiently to grow your funds.
How many checking accounts should you have? This is truly up to you. Some people prefer to have one checking account and multiple deposit accounts; others prefer to have one main account and a second interest checking account to save more on the funds they have allocated for short-term spending goals.
How many savings accounts should you have? Savings accounts are a great way to plan for multiple short-term goals. Since there are minimal balance and withdrawal requirements compared to other deposit accounts, you can open as many as you need to efficiently manage your budget and goals. For example, use one to save for college, a second to save for a home, a third for an emergency fund, a fourth for an upcoming vacation and a fifth to build up retirement funds until you can contribute them to a certificate of deposit.
How many money market accounts should you have? If you're saving for a long-term goal, you may only need one money market account as you can regularly contribute to the account and build up the balance. However, you can choose to open more than one to save for various long-term goals.
How many CD accounts should you have? Since funds in certificates of deposit must be kept untouched until they mature, there may be benefits to opening more than one CD, especially if they mature at different dates. This can allow you to stagger your CDs to mature when you need them for various goals.
Need some help fitting saving into your budget? Come in for a Citizens Checkup at your nearest Citizens branch.
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Disclaimer: The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.