Unfortunately, having all of your bank accounts at one bank is not the best idea. Here are five reasons why you should open multiple banks accounts:
1. A scheduled bank outage could leave you in a predicament
Banks usually need scheduled maintenance that could last a whole day or even more which depend on the severity of security issue. During these times, withdrawal channels are offline which could cause havoc for your finances if you have all of your accounts at the same place. That’s why some financial experts recommend having at least 2 separate bank account for this unavoidable inconvenience.
2. Owning a business
When you have a business you should separate personal finances from your business finances, so as not to “accidentally” use your business accounts for personal use and vice versa. By doing this, you make your life easier in terms of bank statement monitoring and tax calculations.
3. Credit Card Defaults. Your credit card issuing bank may take your money in your savings account.
Sometimes a bank may be able to take your savings account balance without heading to the courts assuming your savings account and a credit card are run by the same bank.
If you have your credit card at a bank separate from your savings account, the credit card bank would have to go to court to obtain access.
4. Multiple accounts may make your money easier to manage
Having multiple accounts for your specific goals is sometimes the easiest way to manage and achieve your long and short term goals.
You can set up accounts in separate banks for your various goals example car down-payment or vacation goals. You can transfer to these funds and see your money grow and achieving your goals.
5. One bank isn’t likely to offer the best product for your bank account needs
To attract customers, other banks offer the lowest interest for car/housing loan while traditional banks usually offer the best credit cards.
If all of your accounts are still at the same bank, you should consider opening at least one other account in case of an emergency.
If this post helped you, please share them in social media so we can help others too!