How many checking accounts should you have?
For most people, one checking account is enough to cover everyday needs: receiving paychecks, paying bills and managing expenses. However, a second account can be helpful in specific situations, such as opening a joint account with a partner or family member or keeping business finances separate from personal spending.
What to look for in a checking account
- Minimum balance requirements: Some accounts require a minimum balance to avoid paying monthly maintenance fees. Make sure the minimum is manageable and that you’re aware of any penalties for falling below it.
- Access to funds: Look for accounts that offer convenient access to your money, including a debit card, ATM availability, online banking and local branch access — especially if you regularly withdraw cash.
- Fees: In addition to maintenance fees, there may be other charges such as overdraft fees, non-sufficient funds (NSF) fees and foreign transaction fees. Choose a checking account with zero fees.
Earn a welcome bonus or rewards with these bank accounts
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
1% cash back on up to $3,000 in debit card purchases each month. See website for details by clicking “Learn More”.
Information about the Discover® Cashback Debit Checking has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication
Information about the Discover® Cashback Debit Checking has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication. *Click here for important disclaimers and disclosures.
How many savings accounts should you have?
Savings accounts play an important role in your financial health but many people don’t take full advantage of using more than one. Ideally, you should have at least two: one for emergency savings and another for future goals, like a vacation or a down payment on a home.
While traditional savings accounts are common, they typically offer little to no return on your money. Meanwhile, online high-yield savings accounts can offer APYs far above the national average. This makes them ideal for long-term savings, as your money can grow more effectively over time.
That said, it may still make sense to keep your emergency fund only in a traditional account for quicker access. Since high-yield accounts are usually online-only, transferring funds to your main checking account in an emergency, for example, could take a few days.
What to look for in a savings account
- Minimum balance requirements: Check if there’s a minimum deposit to open the account or to maintain daily to avoid fees.
- Withdrawal limits: Some savings accounts only allow you to take out cash a maximum of six times per month.
- Fees: You can definitely find a no-fee savings account these days.
LendingClub offers a variety of products, including savings accounts and CDs.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Annual Percentage Yield (APY)
4.20% (with monthly deposits of at least $250), or 3.20%
Reasons why you should have multiple accounts
There are many reasons why having multiple bank accounts can be a good idea for you.
Separate finances from significant other
Couples or family members often benefit from a joint checking or savings account for shared expenses, like rent or groceries, while still maintaining personal accounts for privacy and individual spending.
Separate personal and business finances
If you freelance, own a small business or have a side hustle, having a separate business account can help you track income, expenses and taxes more clearly. It can also make budgeting and bookkeeping easier.
Goal-based savings
You may want to open separate accounts for measuring specific savings goals, like a vacation, wedding, home down payment or holiday gifts. This can make savings more organized and motivating. Some online banks even let you label each savings account with the intended goal.
Bank incentives
Many banks offer sign-up bonuses, referral rewards or cash-back perks. Opening accounts at different institutions allows you to benefit from various promotional offers and features that suit your financial habits.
Pros and cons of having multiple bank accounts
Having multiple bank accounts can be of benefit to you, but we point out the drawbacks as well.
Pros
- Better organization of finances
- More control over shared finances
- Access to different account features, like high APY, ATM access, etc.
- Ability to take advance of different bank perks or promotions
Cons
- More to manage: multiple logins, statements and account activity to track
- Increased risk of fees
- Potential for disorganization
- Funds spread too thin
Tips for managing multiple accounts
Having more than one bank account can be a smart financial move, but it takes some organization to avoid confusion or missed payments.
Label your accounts
One of the most important things you can do is clearly define the purpose of each account. For example, you can label one as you “emergency fund” and another for “everyday expenses.” If your bank or budgeting app allows nicknaming, take advantage of the feature.
Automate transfers and payments
Another tip is to automate transfers and bill payments. Also, set up recurring transfers from your main checking account into your savings accounts. This way, you’re saving consistently without having to think about it. You can also automate bills like rent or your monthly credit card payment, so they’re paid out of the correct account on time.
Stay on top of your accounts
To stay on top of your balances and avoid overdraft fees or missed deposits, make it a habit to review your accounts regularly. You can use a budgeting app or a spreadsheet to track which account is for what, especially if you’re juggling accounts across different banks.
Monarch is great if you’re looking for an easy platform. Both the app and the website present information clearly and don’t feel overly crowded. Honeydue is also great for couples looking to budget together, as you can view each other’s bank accounts, credit cards, loans and investments, as well as any progress on shared goals.
Monarch
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Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
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Free trial
7-day free trial is available before subscribing
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Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
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Categorizes your expenses
Yes, but users can modify
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Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
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Security features
Utilizes industry-leading security practices, according to Monarch’s website
Pros
- Easy-to-navigate money-tracking dashboard, including a net-worth tracker
- Easily syncs to your bank, credit cards and other financial accounts
- Users can add collaborators for free
- Seven-day free trial
Cons
- Subscription is pricier than competitors
- Recommendations in the “advice” tab are generic
Honeydue
Information about Honeydue has been collected independently by CNBC Select and has not been reviewed or provided by Honeydue prior to publication.
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Cost
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Standout features
Allows couples to see both partners’ bank accounts, credit cards, loans and investments (and each partner can select what to share with the other) so you can manage money together and see everything at one glance
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Categorizes your expenses
Yes, but users can customize
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Links to accounts
Yes, you and your partner’s bank and credit cards
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
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Security features
Data encryption, Touch ID and multi-factor authentication
Pros
- Free to use
- Helps couples manage their money together, track spending, coordinate bills
- Syncs to you and your partner’s bank accounts
- Choose what accounts you want to share
- Users set up monthly spending limits in each category and are alerted when they or their partner is reaching limit
- Bill payment reminders
- Chat and send emojis to your partner through the app
- Offers joint bank account
- Security features include data encryption, Touch ID and multi-factor authentication
Cons
- Some reports of app being buggy and transactions not showing up immediately
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
