When it comes to how people keep their money in a bank, you would think that most Americans have just two accounts – a savings and checking account, right? According to a Mercator Advisory Group survey, on average, consumers own 5.3 accounts across all types of financial institutions. Why would you need to have so many banking accounts? Here are six good reasons:
- Expense oversight – Having two or more checking accounts can help keep your expenses in line. One account can be used for all monthly bills and automatic payments, and the other for all everyday costs, including groceries, gas, and impulse purchases. Or, if you're self-employed, you will need to keep your personal and business expenses separate. This allows you to manage your costs better and avoid overdrafts.
- Different accounts for different goals – Just as there are various financial goals you have for saving money, there are savings accounts to accommodate those goals. One account may be for an emergency fund, another for a new home down payment, and a third for a college savings plan. And since each has varying degrees of access needs, you can place each in an account that gives you the best rate based on those needs.
- Take advantage of bonuses – Banks want your business, and they will sometimes offer cash incentives to get it. You usually have to open an account and maintain a minimum balance over a certain amount of time to get the bonus, but this can amount to hundreds of dollars over multiple accounts.
- Different bank product and service offerings – Maybe one bank offers the convenience of an ATM near your home or work, while another doesn't charge fees for certain types of transactions. Find the bank accounts that work best for you and your goals.
- Need multiple withdrawals from savings accounts – Some banks limit the number of withdrawals or deposits you can make from a savings account per month or statement cycle. If you know you will need more than the allowable limit, having more than one savings account may help you get around this restriction.
If you would like to find out more about opening a savings or checking account at NASB, give us a call at 1-800-677-6272.