Generally, most people have at most 2 to 3 bank accounts, which comprises a combination of both checking and savings accounts. However, given the dynamics of our rapidly changing world today, maintaining 3 or more checking and savings accounts may give you an array of benefits. The following reasons may convince you to ditch the idea of having any less than 3 accounts:
- Higher interest earnings: Interest rates are often subject to fluctuations. Besides, interest rates on savings accounts vary across financial institutions. Therefore, maintaining at least two to three savings accounts increases your chances of enjoying the best interest rates available in the market. If you are willing to spend a bit of time to research the best plans, multiple savings account could enable you to earn the highest returns on your savings in the long run. Also, maintaining a savings account particularly for unforeseen emergencies in an easily accessible account can give you both flexibility and the chance to protect the value of your savings.
- Changing dynamics of professions: Today most people aren’t tied to just their day jobs. Side hustles and freelancing have become pervasive. Keeping separate checking accounts for each active income stream can help you to be more organized and track how much you’re spending from each income source. Furthermore, multiple checking accounts may also allow you to be awarded new checking account bonuses.
- Backup and security: The purpose of saving is to have access to your funds at times when you need them the most. Temporary outages and interruptions in service are common due to maintenance issues. Having at least three checking accounts that are linked to your main checking account can help you to better prepare for such unforeseen events so that you can have easy access to your money until your primary bank is available for retrieval of funds.