4 min read
Is One Checking Account Enough?
-
-
Copied link to Clipboard!
There are so many reasons to have more than one bank account. Most of us use money in different ways, so it may make sense to open additional accounts. The situation can become more complicated if you are married or more than one person uses your account. Use this guide to help you open the right number of bank accounts.
Lesson Notes:
- Having more than one bank account can help you manage your finances and take advantage of certain perks and rewards.
- However, having too many bank accounts can get you into trouble if you lose track of your finances.
- Learn how to set up the right number of accounts based on your needs and lifestyle.
LESSON CONTENTS
How Many Bank Accounts Should I Have?
Experts recommend having at least two bank accounts, including a checking and savings account.
Most individuals use their checking account for regular and everyday purchases, such as buying groceries, paying bills and indulgent purchases like going to the movies. Many financial institutions offer free checking accounts and debit cards.
Many people also put a portion of their income into a savings account. This saved money is usually kept aside for a separate purpose. This could include an emergency fund, saving for a down payment on a home or a vacation fund.
If you don’t plan to use the money in your savings accounts, you may want to look at options that will pay you higher dividends or interest. Look for high-yield savings accounts or credit unions that offer dividends on top of interest.
You can also see what the rates are on your financial institution's money market accounts or certificates of deposit.
Ideally, your accounts should allow you to use online and mobile banking for convenience. Take into account other benefits and features like courtesy pay, overdraft protection and no/low balance requirements.
Reasons to Open Additional Banks Accounts
Two bank accounts might not be enough. There are several reasons to open multiple bank accounts.
Couples and Joint Accounts
If you are married or share an account with your significant other, you may want additional accounts. Some couples have individual accounts as well as a separate checking account for joint or household bills and living expenses. This can be a great choice if you and your partner like to manage your money separately.
Many people like to maintain their financial independence in a relationship. Doing so gives you control over your personal finances while still enjoying the perks of living in a two-income household. You will both have to decide how much you are going to contribute to the joint account every week or month and how that money will be used.
Deposit Insurance
It’s always important to make sure the money in your account is insured in case something happens to the bank or credit union. The Federal Deposit Insurance Corporation (banks) or National Credit Union Association (credit unions) will insure your money up to $250,000 per depositor or share owner, per insured institution, for each account ownership category (single accounts, joint accounts, etc.).
New Account Perks and Benefits
Not all accounts are created equal. Some banks and credit unions offer discounts and perks to new members when they open an account, such as competitive interest rates on personal loans, debt forgiveness, zero ATM fees or a higher rate of return. However, you may have to meet certain requirements to access these benefits.
Consider opening an account to take advantage of these perks, but be careful not to overextend your finances.
Tracking Expenses
Having a bank account makes it easy to track your finances. Some people like having an extra account if it helps them track their finances according to different categories. If you are self-employed, you can use a business account to track expenses and income for tax purposes.
If you tend to spend a lot of money in specific spending categories such as medical care or home improvement, you can use a separate account to track your spending over time. Just sign-in to your account online to see a complete breakdown of all the money coming and going from your account.
Fraud Protection
Unfortunately, fraud and financial scams are on the rise. Diversify your assets because having more than one account can help protect you from these kinds of crimes.
If you only have one account and someone gains access, they could steal all of your money leaving you to wait for your bank to complete a review of the fraud. A fraudster may have a harder time gaining access to multiple accounts, which gives you more options if one gets hacked.
Your bank or credit union may also have additional services and resources for fraud and identity theft protection.
Disadvantages of Having Multiple Accounts
It’s important to remember that having too many accounts also can get you into trouble. Keeping track of all your money can be a challenge when it’s spread across several different accounts. Having more than one account should ultimately help you manage your money and not complicate things.
Having more than one account means keeping less money in each account. Keep an eye on your available balance to avoid going into the red, as some banks and credit unions will charge you overdraft fees. Sign up for courtesy pay or overdraft transfer services to help you avoid excessive overdraft fees.
Some banks and credit unions will also put a limit on how many accounts one person can open. You may have to partner with another financial institution if you need to open another account.
Look for a financial partner that offers everything you need under one roof. You should be able to manage multiple accounts with online banking or an app. Keep this information in mind as you look for ways to better manage your money.
Related Resources
View All
10 min read
Winning Financial Moves: How to Create a Budget & Maximize Every Dollar
What is a budget & why it works
A budget is simply a written plan for your money, yet only 42% of Americans keep one consistently (NFCC, 2024). When you chart where every dollar goes, three things happen: you gain clarity, you control spending before it occurs, and you feel more confident about emergencies. In short, a budget is a way to make sure you can cover your expenses from month to month — a calm antidote to paycheck panic. It creates financial stability and supports your financial goals; read on to learn how to create a budgeting plan.
10 min read
A Football Fan’s Guide to Budgeting for Game Day
Football, friends, and food are a winning trio, but without a game plan, the bill can tackle your wallet before the first snap. This guide turns tips for creating a budget-friendly game day party into an action-packed playbook so you can savor every touchdown without fumbling your finances.
10 min read
5 Rookie Money Mistakes (And How to Avoid Them)
Have you ever had an unexpected bill wipe out your good intentions, or caught yourself wondering, “What should I do with my money?” You’re not alone. Late-night searches for money advice can leave anyone confused. One blog tells you to skip the lattes, while another pushes a cryptocurrency side hustle. Instead of adding to the noise, this guide breaks down five of the most common money mistakes and, more importantly, how to sidestep them.
12 min read
How to Budget as a College Student
Every semester delivers the same double punch: a tuition bill larger than last term and a flood of incidental costs — textbooks, lab fees, late-night pizzas — that evaporate paychecks and loan disbursements at dizzying speed. The average college student spends $38,270 per year on tuition, books, supplies, and daily living expenses. In a private campus, that bill rises to $58,628 (Hanson, 2025). When numbers grow that large, hoping for the best is not a plan; a written budget is. This guide offers a practical roadmap for how to budget as a college student—from mapping cash flows, choosing tracking tools, and cutting expenses without trimming the joy out of campus life.
5 min read
How to Start Saving Money: Clever & Easy Steps
If you vowed this is the year you get ahead financially only to watch payday deposits disappear, you’re not alone. Gillespie (2025) notes that 59% of Americans still can’t cover a $1,000 emergency without borrowing or selling something. Meanwhile, the U.S. personal-saving rate is languishing below 4 percent—about half its long-term average (BEA, 2025). These sobering numbers explain why learning how to start saving is so critical. The encouraging news? A few clever ways to save money can transform vague intentions into steady progress.
6 min read
How Can I Save Money? Here Are 10 Easy Tips
How can I save money? Picture your money as water flowing through a series of channels. Some streams nourish long-term goals, others evaporate into impulse buys, and a few leak through cracks you never noticed. Redirecting enough of that flow toward the bucket that matters most — savings for emergencies and retirement — guarantees long-term security. Savings protect your future. Yet the typical American household saves just 3.9 % of disposable income as of March 2025, roughly half the pre-pandemic norm (St. Louis Fed, 2025). The good news is that small, deliberate changes can double or triple that rate without feeling like deprivation.
Below, you’ll find proven, beginner-friendly money saving strategies you can start on today. By the end, you’ll have a clear map of ways to save money, from the daily latte decision to bigger moves like automating transfers or picking a side hustle.
10 min read
Summer Vacation Ideas on a Budget
Rising airfares or tight budgets don’t have to cancel summer fun. A thoughtfully planned summer vacation on a budget can restore energy, create memories, and leave room in the checking account for next semester’s textbooks or an unexpected flat tire. Let’s nail down the numbers and map out low-cost destinations and close-to-home adventures. We also outline painless saving tricks and digital tools that track every dollar and make family summer vacation ideas on a budget a practical reality.
10 min read
How to Become Financially Independent
Financial independence (FI) isn’t a distant fantasy reserved for trust-fund heirs or Silicon Valley founders. Instead, it’s a math-driven destination you can plot on a timeline — then march toward with deliberate choices every payday. In plain terms, financial independence means having the freedom and flexibility to make choices that align with your goals - without constantly worrying about money. It’s about feeling secure and confident in your day-to-day life and your future. In the next few minutes, you’ll learn the core habits, sequential steps, and digital tools that turn that definition into reality. By the end, you won’t just understand how to become financially independent; you’ll know which actions to take.
8 min read
Can You Pay Rent with a Credit Card?
Can you pay rent with a credit card? Short answer: yes. Absolutely, but only if your landlord or a third-party processor will take the plastic and you are prepared to shoulder—or cleverly avoid—the fees. Roughly 22% of U.S. renters already put monthly housing costs on debit or credit cards, according to a 2024 payment-trends study by property-tech firm Zego (Salmonsen, 2024). That slice is growing because tenants want smoother cash flow and richer rewards, while landlords crave on-time payments. Still, every swipe passes through a maze of surcharges, interest rates, and utilization limits. Before you tap “Pay,” you need a plan to ensure you have a smart credit card management strategy in place.
10 min read
Is it Wrong to Let Someone Use Your Credit Card?
When someone you trust — a spouse, adult child, sibling, or close friend — asks to use your credit card, the request feels innocent. Maybe it’s for groceries, a plane ticket, or an emergency car repair. But even with the best intentions, lending your credit card can end up with disastrous consequences. So, you might be asking, is it wrong to let someone use my credit card?
The short answer: Yes, it can be wrong — legally, financially, and ethically — depending on the circumstances. Even if you trust the person, the risks often outweigh the convenience. Below, we unpack the hazards, the narrow circumstances when sharing your credit card can work, and safer alternatives that protect you.
8 min read
Improving Your Debt-to-Income Ratio
In Q3 2024, Americans spent 11.3% of their disposable income on household debt payments (St. Louis Fed, 2024). Still, some households suffer massive debts, using over 50% of income to service debt. When your debt payments consume too much of your monthly income, lenders view you as a riskier borrower. This results in unfavorable loan terms, higher interest rates, or loan denials.
Understanding how to improve your debt-to-income ratio helps you qualify for better financing options. In simple terms, your debt-to-income ratio (DTI) computes the percentage of your income that goes toward paying debts each month. In this article, we’ll explain how to compute your DTI ratio, what is a good debt-to-income ratio, the best debt-to-income ratio for various loans and strategies for lowering it.
10 min read
What Is Cash-Out Refinancing?
What is cash-out refinance? It is a mortgage option that lets homeowners replace their existing home loan with a new one and, in the process, convert a portion of their built-up home equity into cash. In other words, if you have substantial equity in your property, you can refinance it for a loan amount that exceeds what you currently owe. The difference between the new loan’s principal and your remaining mortgage balance is then disbursed to you as a lump sum of cash.
A cash-out refinance can be a powerful way to consolidate debt, fund home renovations, or address pressing financial needs. Moreover, mortgage refinance rates are often lower than those of credit cards or unsecured loans. So, how does a cash-out refinance work? Read on for details and the pros and cons.