How many bank accounts should I have? | Multiple checking accounts (2024)

By Citizens Staff

If you’ve heard your friends and family talk about having multiple bank accounts, you may be wondering if it's a good idea for you. At minimum, most people have at least one checking and one savings account because, starting out, that’s really all you need. However, as you venture further into life, your goals and responsibilities grow, and you may find you need another account to help with organization. A second checking or savings account can provide you with more control over your spending by allowing you to dedicate specific accounts for defined expenses.

Keep reading to find out if having more than one bank account could make your life easier.

With direct deposits coming in and automatic payments going out, managing your money can feel overwhelming. A smart way to keep it simple is a percentage-based budget like the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.

.If you’ve ever made a mortgage or rent payment without realizing your credit card payment was hitting your account that day, you may benefit from keeping your needs and wants in separate checking accounts. This way, you can confidently swipe for the things you want without worrying about cutting into an important bill.

Take a look at our 50/30/20 calculator to see what this budgeting strategy would look like for you. When using multiple checking accounts for budgeting, each account should have its own specific purpose. Designate one account for paying bills only, and avoid accessing it for everyday spending. Another account would be your “everyday” spending account for items like groceries, gas, and impulsive purchases. This way, you can better keep track of both accounts without worrying if buying groceries will make your rent check bounce. It could also help you to rely on a credit card less as you're more closely managing your finances.

As an entrepreneur, having separate accounts for your small business can make your bookkeeping life a lot easier. It can help you track your business-related expenses like gas for your ride-sharing hustle or shipping costs for your online store. Once tax or audit time rolls around, you’ll be glad everything is in its own place.

Just like the name suggests, this is a break-only-in-case-of-emergency account. Unlike your regular checking account, an emergency fund is built to provide a financial cushion in case you lose your job or are unable to work. Ideally, you should be able to pay your bills and financial obligations for three to six months from this fund.

If you find yourself transferring money out of your checking account more than once or twice a month, you may need a separate account for your emergency fund. Keeping emergency funds separate from the account you use for daily spending — and having a separate debit or ATM card for the account — can help ensure that the money will be there and readily accessible when you need it most.

Once you’re ready to open a second (or third) checking account, you’ll want to think about which type of account will best help you reach your financial goals. You could simply open another basic checking account, but you may be missing out on benefits that other types of checking accounts provide. Here are a few options to consider:

• Checking accounts with interest often require a higher account balance — but they can also earn money while providing you with convenient access to your funds. When you open an interest checking account in addition to your basic checking, you can use the basic account for bills while maintaining a higher minimum balance in the interest checking, using it only for smaller everyday expenses.
• Banking packages reward customers who have multiple accounts. Rewards may include waived fees on money market accounts, automatic transfers between accounts, or goal tracking options. Usually, the second checking account in a package is an interest checking account to help increase your funds.
• Joint checking accounts are often used by spouses to pay bills or other shared expenses. Another common reason to keep a separate personal checking account is to pay off any debt you don't want to pass on to your spouse. However, having a joint bank account doesn’t mean you have to get rid of your own checking and savings accounts. Talk to your partner about paying for shared expenses with the joint account and keeping your personal stuff separate. It just might save you from an argument — or keep your surprise anniversary gift an actual surprise.

While the perks of having more than one checking account are many, it’s important to keep in mind that having more than one bank account means more accounts to manage and monitor. If you think keeping track of multiple accounts will be hard for you, consider using a financial app like Mint™ or Personal Capital® that can help you keep track of all your finances in one place.

Having multiple checking accounts could also mean more maintenance — and more fees — from the bank if you fall below the minimum balance requirements or inactivity thresholds. Be sure to stay on top of your finances to avoid paying any unnecessary fees or losing out on accruing interest.

Planning to take a family vacation? Upgrade your home or yard? Help your kids pay for college expenses down the road? Instead of keeping the money you’ve accumulated toward these financial goals in one account, you could open a separate checking account for each one. Not only will having separate accounts make it easier to quickly see how close you are to your goal — but you’ll be able to access the funds when you need them without worrying about taking money away from your other goals.

Really, there’s no hard and fast rule about how many checking accounts any one person should have. The number and type of accounts that works for you will depend on many factors, including your financial goals, spending habits, and comfort level with monitoring and managing multiple accounts.