Here Are The Pros And Cons Of Owning Multiple Bank Accounts
When it comes to having multiple bank accounts, some people can easily manage their finances without having to worry about a thing. On the other hand, some people struggle to manage even one bank account. It is completely normal and varies from person to person, but when banks provide amazing incentives, you often find yourself wondering what it would be like if you open another bank account. Opening another bank account could be for various reasons; maybe you are looking to try out a new bank or maybe your employer requires you to have a bank account in a particular bank. But, in the end, it all boils down to the individual; it depends on them if they want to have multiple bank accounts or not. If you are thinking about jumping on the bandwagon but are confused about whether you should go for it or not then here are the pros and cons of having multiple bank accounts.
- You get to avail the numerous benefits that different banks offer, such as a fixed profit rate for your savings or a series of discounts on your favorite stores. Some bank accounts also offer insurance and lockers for you to keep your precious items in.
- When you own multiple bank accounts, you can easily use them for a goal that you have in mind. For example, if you want to save money every month, you can add a small percentage of your income into that separate account without worrying about using it up.
- Banks have limited the number of free withdrawals. So when you have multiple accounts, you can easily withdraw cash from your ATMs without worrying about the added costs.
- The first con that comes to having multiple accounts is managing them all together. Sometimes you’ll forget an ATM card so you’ll withdraw your amount from another account but may forget to transfer that amount back to compensate. There’ll also be a risk of losing track of your finances when they are divided into multiple accounts.
- Apart from that, you’ll have to pay additional fees for all your bank accounts. While you pay all the additional costs, you don’t get the most out of the interest charges since your finances are divided, so that is a significant con that stops people from starting multiple accounts.
- Last but not least is the average monthly balance target. Almost all banks have this pre-set condition, which consists of you making sure you hit your average monthly balance. If you are unable to hit the said target, then you’ll have to face penalties. For people with unstable incomes, this can easily become a nuisance.
So, with this list of pros and cons listed in front of you, would you consider starting multiple bank accounts, or are you good with one?
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