How many bank accounts should you have?

[Surely]

Well, in the sense that just about everything isn't 99% certain, sure. But just letting your money sit in an account getting eaten alive by inflation is not really a great idea.

You have to make your money work for you, and it's definitely hard to do.

That I can agree with.

However, it's good to have a good amount of cash that is easily accessible just in case you need it quickly. If it's tied up in an investment, it's not always easy to pull it out quickly enough. Or there may be fees tied to those investments (selling fees or early-out penalty fees) that make them less attractive in the short term.

 

[eric/]

That I can agree with.

However, it's good to have a good amount of cash that is easily accessible just in case you need it quickly. If it's tied up in an investment, it's not always easy to pull it out quickly enough. Or there may be fees tied to those investments (selling fees or early-out penalty fees) that make them less attractive in the short term.

Well yeah, but I just don't see how having a savings account really does anything unless you have a difficult time without having two accounts. The real deal breaker is when they want you to maintain a minimum balance in the savings. That essentially ties up whatever amount of money that is, so you're really kinda paying to have a savings account.

 

[Surely]

Well yeah, but I just don't see how having a savings account really does anything unless you have a difficult time without having two accounts. The real deal breaker is when they want you to maintain a minimum balance in the savings. That essentially ties up whatever amount of money that is, so you're really kinda paying to have a savings account.

I don't have a difficult time with money, and I have a saving account. I've explained my reasons as to why I have multiple accounts earlier in the thread. Some people do it because it helps them to stay more organized, some people do it because it helps them to not spend that money, some people do it to prevent fraud.

I do it for organizational purposes and to prevent fraud.

The minimum balance that I need to have in my accounts for no fees is pretty low for me, so that part doesn't matter.

In fact, with my business bank accounts, as long as I have a checking account and a savings account, and as long as I transfer $100 from the checking to the savings once a month (it's set up automatically), there are no fees at all on any of my accounts. No minimum deposit required in either account. I can transfer the $100 back to the checking right away if I'd like.

 

[bradl]

I'm going to *slightly* take this offtopic. If I remember correctly in the US the FDIC or NCUA insures bank accounts for up to $250,000. If that is true, if you had a high amount of income (read: over 8 figures before the decimal), wouldn't you need x accounts * $250K to equal the money going in to have it insured?

If so, for someone with that amount, that's a high number of accounts to have.

BL.

 

[iJohnHenry]

I'm going to *slightly* take this offtopic. If I remember correctly in the US the FDIC or NCUA insures bank accounts for up to $250,000. If that is true, if you had a high amount of income (read: over 8 figures before the decimal), wouldn't you need x accounts * $250K to equal the money going in to have it insured?

If so, for someone with that amount, that's a high number of accounts to have.

BL.

That's why the Cayman Islands has banks.

 

[macuser27]

1 business 2 current 1 isa and the best of all

1 the missus knows **** all about

 

[Cineplex]

Well yeah, but I just don't see how having a savings account really does anything unless you have a difficult time without having two accounts. The real deal breaker is when they want you to maintain a minimum balance in the savings. That essentially ties up whatever amount of money that is, so you're really kinda paying to have a savings account.

The number one reason for having a savings account is to protect against theft. If you keep all your money in a single checking account (which is not bright) than someone could clean you out of all your money at once. Since anyone who has gotten a check from you has the routing and account number...it wouldn't be hard to steal your money if they know you well. That being said, accounts do offer fraud protection and such....but you'll still be broke while it is sorted out. Only you know the savings account number.

 

[Tech198]

depends on the rich people....

 

[LizKat]

Actually the thread title made me think of those insane "clothing haul" videos that are (or were) all the rage for teen girls where they film themselves having come home from the mall with stuff from three, four, five clothing shops. I guess like clothing store hauls, once you get past two or three bank accounts, some sort of compulsion might kick in. I try to keep it simple, not wanting to end up with the bank account equivalent of this:

 

[sliceoftoast]

I currently have 4

• Main savings account, used to deposit my work pay, general purchases
• Secondary Savings account, used only for PayPal i transfer money in here before making any PayPal purchases
• Term Deposit, lock money away and invest it
• Credit card
• Home Loan

 

[dogslobber]

I've been trying to work out what a good number of bank accounts to have is. At the moment I have three; a checking account, an everyday savings account and a retirement savings account.

Curious to see how many accounts people here have and what they use them for.

You don't need a bank account if you use a check cashing service.