How many bank accounts are too many?

There is no set rule as to how many bank accounts you should have, but all the accounts you do have open should serve a specific purpose for your budget or savings goal . You should be able to manage these accounts by consistently depositing or contributing to each account.

Is it bad to have lots of bank accounts?

In general, having multiple accounts is not a bad thing but you want to make sure you are able to manage all of the accounts you have open. Certain banks or financial institutions might also have a limit as to how many accounts you can open simultaneously.

Advertiser Disclosure

How Many Checking Accounts Should You Have?

April 19, 2024

6 min Read

Written by Caitlyn Moorhead

Edited by Elizabeth Constantineau

A mature smiling man in his mid 40's takes a picture with his smart phone of a check or paycheck for digital electronic depositing, also known as "Remote Deposit Capture", fees, America, money, payment, avoid fees, bills, debt

RyanJLane / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

If you are trying to stay on a budget, you may have heard about the benefits of having multiple checking accounts. But how many checking accounts should you have? While you can open as many accounts as you like, most financial experts agree that having two checking accounts is a good place to start.

Quick Take: How Many Checking Accounts Do You Need?

Multiple accounts can be beneficial across the board — whether they are high-yield savings, CD accounts or money market accounts. When it comes to having more than one checking or saving account, it can help you better manage your money and your daily personal finances. Here are some key takeaways:

When you open an account, either a personal checking account or a business checking account, you can easily see what you are spending and what you are saving through your account balances.
While having several banking accounts has some risks if you aren’t careful, it can be helpful to have separate accounts for varying reasons such as paying bills, earning interest or even avoiding fees from certain banks and credit unions.
You can have one checking account for bill payments and necessary expenses such as rent, groceries or student loan debts.
The second account is for your discretionary spending or things you want but don’t necessarily need. These expenses can include dining out, entertainment, shopping, streaming services and memberships.
Everyone’s wants and needs may look slightly different, but the premise is the same. Needs are things you cannot live without such as food, shelter and electricity, while wants are things you like to have but aren’t mandatory.

Is It Bad To Have Multiple Checking Accounts?

It is not a bad thing to have multiple checking accounts. It can help you set budgets for different short-term and long-term goals.

Make sure you keep track of any accounts you have and what you use them for to ensure all of your financial needs are covered.

Two Checking Accounts Can Help You Stay on Budget

Opening multiple checking accounts at the same bank or different financial institutions can help you stay on track and avoid overspending on non-necessities. Having two checking accounts and three savings accounts can be the ticket to isolating where you spend and where you save. The three savings accounts are for short-term goals, long-term goals and an emergency fund.

Having the money for your discretionary spending for items you want in a separate checking account can help ensure that you don’t spend more than you had budgeted on them. If all of your money is in one account, it is much easier to lose track of what it is getting spent on. Furthermore, separate savings accounts can help hold you accountable for your goals. You will clearly be able to see whether you are putting enough money away each month and which accounts are better for earning interest. From there you can make adjustments as needed.

Using Your Checking Accounts Effectively

There are several ways to use multiple accounts effectively and efficiently. It’s not just about having options but using each account for a specific purpose. Here are some tips to consider when opening more than one checking account:

Having more than one account can help you stick to your budget, track your spending and grow your savings more effectively.
Before jumping into a new money management system, review your spending habits and your financial goals. What you hope to accomplish may dictate how many accounts you open.
It doesn’t have to be all business with your checking. You should also open an account for fun spending on things you want or future goals. This account would have a budgeted cap that you wouldn’t go over, but it’s still nice to know you don’t have to sacrifice all the things you want.
Having this money set aside into a separate account can not only help you avoid overspending on luxuries like a vacation but may actually motivate you to use it.
Rewarding yourself for hitting your goals is important and having it designated in its own account may entice you to follow through.

Managing Multiple Banking Accounts

While there are numerous advantages to having multiple bank accounts, there are a few drawbacks. For instance, you’ll need to be diligent about not overdrawing one. Forbes Advisor recommends people “set up alerts for each account.” Low balance alerts and reminders can prove critical in avoiding unwanted overdraft fees. Also, it is important to review your statements to ensure there has not been any fraud or wrongdoing.

Forbes also encourages people to do their research before opening more than one account and take advantage of incentives offered by banks. You will want to remember that the Federal Deposit Insurance Corporation (FDIC) insures up to $250,000. This is the total for all of your accounts at a single bank. So, if you are hoping for this added protection and keep large amounts of money in each account, it might be worth putting your larger accounts at different banks.

Final Take To GO

It’s not bad to have multiple checking accounts open. In many cases, money experts suggest you have at least two accounts to help divide up your necessary and discretionary spending. Though there are no specific limits as to how many you can have open, make sure you can manage them to better reach your financial goals. This means keeping an eye on your account balances, spending and savings.

FAQ

Here are the answers to some of the most frequently asked questions about bank accounts.

How many bank accounts are too many?
- There is no set rule as to how many bank accounts you should have, but all the accounts you do have open should serve a specific purpose for your budget or savings goal. You should be able to manage these accounts by consistently depositing or contributing to each account.
Is it bad to have lots of bank accounts?
- In general, having multiple accounts is not a bad thing but you want to make sure you are able to manage all of the accounts you have open. Certain banks or financial institutions might also have a limit as to how many accounts you can open simultaneously.

Crystal Mayer contributed to the reporting for this article.