Most of us are willing to do just about anything in order to save money. Building wealth and avoiding debt are great plans to have so that you have money for your future and not be in debt at the same time. Many financial advisors feel that have multiple bank savings accounts can be a great tool in saving money while others feel that it could lead to financial disaster. This article will take a look at the pros and the cons of having multiple accounts.
Pros To Having Multiple Bank Savings Accounts
Opening up several different savings accounts is easy. Banks and other financial institutions allow for people to have more than one account and having your money spread out over several different financial institutions. There are several reasons why this is a good idea. The first reason could be that you have many different savings goals. Having more than one account will allow for you to keep track of how much money you are saving towards each of your goals. If you have three goals you could have three savings accounts. It is that simple.
Another reason is that you need to separate your savings. Many of us have a savings account but often times end up spending the money and when we have an emergency we will end up not have the money. A separate savings account could lead to your having money when you need it.
The FDIC for up to a certain dollar amount insures each bank account. If your bank accounts reach this dollar amount you might have to open a new account to avoid no longer having your money insured.
Cons To Having Multiple Bank Savings Accounts
Even though there are many different reasons that point to having several bank savings accounts you will find that there are also disadvantages to having several accounts as well. The first of these cons is that it might be hard for you to reach and keep the minimum balance requirements per the bank.
If you are the type of person who likes to have relationships with your bankers you might find that this is more difficult when you have more than one bank account. This is because you are bouncing between bank accounts and you do not get the personal attention from the bank advisors.
Another major con is that the amount of interest you can lose could be quite a bit. The reason behind this is that certain accounts pay more interest on larger balances. If you are spreading your money throughout several accounts you could be losing interest because your balances are smaller.
If you are the type of person who is very organized and detail oriented you might find that having several bank savings accounts might be beneficial to you. However if you are not this type of person you might find that having more than one account might be confusing for you and you might end up losing track of money. Losing money can be a bad thing so it is recommended that you do what is best for you and your financial solution after visit here.