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Checking accounts offer a safe place to keep money that’s used to pay bills or make purchases. A checking account also can be linked to a savings account or money market account to allow for easy transfers between accounts.
Having at least one checking account is a good place to start, but it’s possible to have multiple checking accounts at the same bank or at different banks. There are various reasons for having more than one checking account. Figuring out the right number of accounts to open depends on your financial needs and goals.
How Many Checking Accounts Can I Have?
The number of checking accounts any one person can have is entirely up to them. There’s no limit on the number of checking accounts you can open, whether you have them at traditional banks, credit unions or online banks.
There is, however, a limit on how much of the money you keep in your checking account is FDIC insured. The Federal Deposit Insurance Corporation insures banking deposits, including money held in checking accounts, up to specific limits.
The standard FDIC coverage amount is $250,000 per depositor, per FDIC-insured bank, for each account ownership category. So this means if you have multiple checking accounts at the same bank, along with savings accounts, money market accounts or CD accounts, your total coverage amount is $250,000 across all of them.
The good news is that the $250,000 per depositor limit applies to individual banks. So you’d be insured up to those limits at each bank that you have a checking account.
Reasons for Opening Multiple Checking Accounts
There are different reasons why it could make sense to have more than one checking account. For example, you may consider opening multiple checking accounts if:
- You need to keep certain deposit or withdrawal transactions separate from others.
- You’re interested in qualifying for new checking account bonuses.
- You keep large amounts of money in checking and want to stay within the FDIC coverage limits.
- You’re interested in qualifying for specific perks, such as loan discounts or higher interest rates on deposits.
- You bank at both online and brick-and-mortar banks and need a way to transfer funds between the two.
Separating Transactions
Having multiple checking accounts could be a good fit if you have certain transactions you need to keep track of separately.
For example, you may want to have one personal checking account and another business checking account if you’re self-employed, do gig work or run a small business. Keeping business income and expenses separate can make filing taxes easier.
Separate accounts could also make sense for tracking specific expenses. For instance, you may set up a checking account solely for paying medical bills, childcare expenses or college expenses if you’re paying tuition and fees for yourself or your child.
Qualifying for New Checking Account Bonuses
One way banks attract new customers is with checking account bonus promotions. These promotions offer you cash in exchange for opening a new account.
You typically have to meet certain requirements, such as maintaining a minimum balance or making recurring direct deposits. But opening a new checking account to qualify for a bonus can be an easy way to get extra money.
Managing FDIC Coverage
If you normally keep large amounts of money in checking, then having multiple accounts at different banks may be necessary to stay within the FDIC coverage limits. While the odds of your bank’s failing are likely low, knowing that your money is protected can be reassuring.
Banking Perks
Some banks offer additional incentives to attract new customers that could entice you to open a checking account. For example, you may be able to get an interest rate discount if you apply for a loan or credit card. Or, you may get a slightly higher APY on a savings or money market account if you also have a checking account at a particular bank.
Transferring Funds Between Accounts
Multiple checking accounts can also be useful if you bank at both online and brick-and-mortar banks.
While many online banks offer mobile check deposit to add money to checking, there’s often no way to deposit cash. In some cases, depositing cash is possible but may be inconvenient. Having a checking account at a traditional bank allows you to deposit cash that you could then transfer to your online checking account.
Pros and Cons of Having Multiple Checking Accounts
Having multiple checking accounts can help manage your finances in several ways. But there are some potential downsides to consider as well.
Pros
- It may be easier to keep your finances organized.
- You could earn hundreds of dollars in new checking account bonuses.
- It’s easier to manage FDIC coverage limits.
- Separate accounts can keep business and personal finances from being commingled.
- Having individual and joint checking accounts could make sense if you’re married.
- A checking account at a traditional bank can be a good backup if you primarily bank online.
Having multiple checking accounts can test your organization skills, since you’ll have more to keep track of. How easy or difficult this proves to be depends on whether you have multiple checking accounts at the same bank or different banks.
If all your accounts are at the same bank, you could easily manage them through online or mobile banking. But if you have checking accounts at different banks, you may need a budgeting app that you can sync each of them to so that tracking deposits and withdrawals is less of a hassle.
Cons
- Multiple accounts can be more challenging to keep up with when tracking deposits or withdrawals.
- You may run the risk of incurring overdraft or other fees if you’re not tracking each account closely.
- Monthly maintenance fees can easily add up for multiple checking accounts.
- It may be difficult to meet minimum balance requirements for multiple accounts if you don’t typically keep a lot of money in checking.
It’s also important to watch out for fees when you have multiple checking accounts. Something as simple as depositing a check to the wrong account could trigger overdraft or non-sufficient funds or overdraft fees if your balance ends up in the red as a result. And, at traditional banks, you may also be contending with monthly maintenance fees, which can quickly add up.
Choosing an online bank for at least one of your checking accounts can help keep costs lower. Online banks tend to charge fewer (or lower) checking account fees—including monthly maintenance fees, minimum balance fees and overdraft fees—compared to brick-and-mortar banks.
How Many Checking Accounts Should I Have?
The answer to this question depends largely on what you need from a checking account and how you prefer to manage your money.
At a minimum, it’s good to have one checking account that you use for depositing money, paying bills and making purchases. If this account is at a traditional bank, you might consider opening a second checking account at an online bank to minimize fees.
When considering how many checking accounts to open, ask yourself what you need each to do for you and how you’ll use it. Then, consider what you’ll need to do to stay on top of tracking those accounts.
How to Manage Multiple Checking Accounts
If you have more than one checking account, there are a few ways to make managing them easier.
First, sign up for online and mobile banking for each account if you haven’t done so already. With online and mobile banking, you can easily log in from anywhere to check your balances, schedule bill payments or move money between accounts. You can also use mobile check deposit to add money to your accounts without visiting a branch.
Next, set up alerts for each account. This can help with avoiding fees and minimizing the odds of bank fraud.
For example, you could set up low balance alerts to let you know when your account balance reaches a certain threshold. This can help with avoiding overdraft fees. You could also set up alerts to notify you any time a debit transaction posts to your account, so you’re aware of any unauthorized withdrawals or purchases.
Finally, review your accounts at least once per quarter to make sure they’re still meeting your needs. Check the transaction history to see how frequently you’re using each one. Review the fees you’re paying, if any, as well as any perks such as loan discounts or fee waivers each account qualifies you for.
If a checking account seems to have worn out its usefulness, consider whether you want to keep it open or close it. Should you decide to close a bank account, make sure you’re doing it correctly. Cancel any recurring transactions, such as deposits or automatic withdrawals and transfers, and destroy any leftover checks as well as your debit card.
Once you’ve taken those steps, reach out to your bank to ensure the account is closed and that no new transactions can be authorized going forward. This can help you avoid accidentally incurring any fees for returned items.
FAQs
Can you have 2 checking accounts at the same bank?
Having at least one checking account is a good place to start, but it’s possible to have multiple checking accounts at the same bank or at different banks. There are various reasons for having more than one checking account
Can you have 2 Bank of America accounts?
You may have more than one User ID, such as when you have a second one for your small business. If you wish to save multiple User IDs, follow these steps: Log in to Online Banking using each User ID.
Is it good to have 2 checking accounts?
As long as you keep your bank accounts in good standing, it’s perfectly fine to have multiple checking accounts. This means you need to keep a positive balance and avoid excessive overdrafts. In fact, how many checking accounts you have and the amount in those accounts will not affect your credit score
Does Bank of America offer more than one checking account?
Bank of America technically only offers a single checking account program called Bank of America Advantage Banking. However, this account comes in three variations: Bank of America SafeBalance Banking®, Bank of America Advantage Plus Banking® and Bank of America Advantage Relationship Banking®
Does having multiple checking accounts hurt your credit?
In general, bank accounts don’t affect your credit score, and they don’t show up on your credit report. One exception is a charged-off account: If you have a negative balance on a checking account and never pay back what you owe, the bank may report it to the credit reporting agencies.
How much does it cost to open a checking account with Bank of America?
You will need at least $25 to open a Bank of America account. That’s the minimum amount required to open a Bank of America Advantage SafeBalance Banking account, though most other Bank of America checking and savings accounts require an initial deposit of at least $100.
How do I add another account to my Bank of America account?
In order to add or remove an owner on your Bank of America account, you’ll need to schedule an appointment in a financial center. When adding an owner, all account owners will need to be present at the appointment and bring a valid government-issued photo ID.
Can you have 2 current accounts?
You can’t have more than one current account
In a word ? false. You can have as many current accounts across as many different financial institutions as you like. There could also be benefits to having more than one bank account.
Can I get a second debit card Bank of America?
To order new and replacement debit cards: (1) sign in to Online Banking and select your account. (2) choose the Information & Services tab then select manage card settings. (3) Select the Order new or replacement cards link in the Debit card settings section.
What is the minimum balance to avoid Bank of America?
When you maintain a combined balance of at least $10,000 or more each statement cycle on your Bank of America Advantage Relationship Banking® account, the monthly maintenance fee is waived. Combined balances include: The average daily balance in eligible linked checking and savings accounts for the statement cycle.
Is Bank of America or Chase better?
Chase has a larger range of options, while BofA has slightly better rates on most of its accounts. They’re both solid choices for customers who want a traditional banking experience, but you may want to consider online banks or comparing your options to find better features or higher rates.
How much money do I need to keep in my Bank of America checking account?
Bank of America Core Checking Account has a $12 Monthly Maintenance fee which is waived with at least 1 direct deposit of $250 each month or maintain a minimum daily balance of $1,500 or more.
Is Bank of America a good Bank for checking account?
Bank of America has received several J.D. Power awards over the years. The bank received the top ranking for Retail Banking Advice in 2021. In 2020, the Bank of America Corporate, Commercial, and Business Banking Contact Centers earned J.D. Power Certification for the 11th consecutive year.
How Many Checking Accounts Should You Have? – Forbes
How Many Checking Accounts Should You Have? Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations. Checking accounts offer a safe place to keep money that’s used to pay bills or make purchases. A checking account also can be linked to a savings account or money market account to allow for easy transfers between accounts. Having at least one checking account is a good place to start, but it’s possible to have multiple checking accounts at the same bank or at different banks. There are various reasons for having more than one checking account. Figuring out the right number of accounts to open depends on your financial needs and goals. How Many Checking Accounts Can I Have? The number of checking accounts any one person can have is entirely up to them. There’s no limit on the number of checking accounts you can open, whether you have them at traditional banks, credit unions or online banks. There is, however, a limit on how much of the money you keep in your checking account is FDIC insured. The Federal Deposit Insurance Corporation insures banking deposits, including money held in checking accounts, up to specific limits. The standard FDIC coverage amount is $250,000 per depositor, per FDIC-insured bank, for each account ownership category. So this means if you have multiple checking accounts at the same bank, along with savings accounts, money market accounts or CD accounts, your total coverage amount is $250,000 across all of them. The good news is that the $250,000 per depositor limit applies to individual banks. So you’d be insured up to those limits at each bank that you have a checking account. Reasons for Opening Multiple Checking Accounts There are different reasons why it could make sense to have more than one checking account. For example, you may consider opening multiple checking accounts if: You need to keep certain deposit or withdrawal transactions separate from others. You’re interested in qualifying for new checking account bonuses. You keep large amounts of money in checking and want to stay within the FDIC coverage limits. You’re interested in qualifying for specific perks, such as loan discounts or higher interest rates on deposits. You bank at both online and brick-and-mortar banks and need a way to transfer funds between the two. Separating Transactions Having multiple checking accounts could be a good fit if you have certain transactions you need to keep track of separately. For example, you may want to have one personal checking account and another business checking account if you’re self-employed, do gig work or run a small business. Keeping business income and expenses separate can make filing taxes easier. Separate accounts could also make sense for tracking specific expenses. For instance, you may set up a checking account solely for paying medical bills, childcare expenses or college expenses if you’re paying tuition and fees for yourself or your child. Qualifying for New Checking Account Bonuses One way banks attract new customers is with checking account bonus promotions. These promotions offer you cash in exchange for opening a new account. You typically have to meet certain requirements, such as maintaining a minimum balance or making recurring direct deposits. But opening a new checking account to qualify for a bonus can be an easy way to get extra money. Managing FDIC Coverage If you normally keep large amounts of money in checking, then having multiple accounts at different banks may be necessary to stay within the FDIC coverage limits. While the odds of your bank’s failing are likely low, knowing that your money is…
Access Your Accounts – Bank of America
Ways To Access & Manage Your Bank Accounts at Bank of AmericaSwitch to Bank of AmericaMake the switch to Bank of America and get convenient access to thousands of Bank of America ATMs and financial centers and 24/7 Online Banking.Switch to Bank of America in 4 easy steps.Direct depositIt’s the fast, worry-free way to deposit your paycheck, pension, Social Security or other recurring deposits. Direct deposit will make your recurring deposits electronically to your checking or savings account—automatically.Qualifying deposits include salary, pension, Social Security and Supplemental Security Income (SSI) benefits and other regular monthly income.Set up direct deposit.Online BankingEnroll in our Online Banking and get easy and secure access to your accounts—anytime, anywhere. Check account balances and transactions, transfer funds between accounts, and set up Online Banking Alerts to notify you about important activity in your accounts. You can also use Bill Pay to pay your bills in minutes from one simple site. Online Banking gives you control of your finances. It’s secure and easy.Learn more about Online Banking.
A Flexible Checking Account – Bank of America
Bank of America Advantage Banking – A Flexible Checking AccountSkip to main contentBank of America Advantage Banking Which is best for you?SafeBalance®Checkless banking with flexible ways to payAdvantage PlusEveryday banking with more ways to waive the monthly feeAdvantage RelationshipPerks for higher balances, like fee waivers and interest Bank of America Advantage SafeBalance Banking®Checkless banking with flexible ways to pay$XXXX or $0 Avoid the monthly feeWe’ll waive the monthly maintenance fee each statement cycle that you:Are an owner of this account who qualifies as a Student under age 25 enrolled in school or an educational or vocational programORAre an owner of this account under age 18ORAre enrolled in Preferred Rewards (applies to first 4 checking accounts)OR Bank of America Advantage Plus Banking®Everyday banking with more ways to waive the monthly fee$XXXX or $0 Avoid the monthly feeWe’ll waive the $XXXX monthly fee each statement cycle that you:Have at least one qualifying direct deposit of $XXXX+ORMaintain a $XXXX minimum daily balanceORAre enrolled in Preferred Rewards (applies to first 4 checking accounts)OR Bank of America Advantage Relationship Banking®Perks for higher balances, like fee waivers and interest$XXXX or $0 Avoid the monthly feeWe’ll waive the $XXXX monthly fee each statement cycle that you:Maintain a combined balance of $XXXX in eligible linked accounts. Learn about combined balancesORAre enrolled in Preferred Rewards (applies to first 4 checking accounts)ORHere’s how it worksBank of America Advantage Banking is a checking account layer with three settings. Pick the one that works.If life changes, just switch it up.What is a checking account?A checking account is a type of deposit account that enables you to deposit and withdraw available funds on demand, typically by writing a check or using a debit card. Checking accounts are sometimes interest-bearing.SafeBalance®Checkless banking with flexible ways to payAdvantage PlusEveryday banking with more ways to waive the monthly feeAdvantage RelationshipPerks for higher balances, like fee waivers and interestBank of America Advantage SafeBalance Banking®About SafeBalance®:A smart start for students – no monthly fee for Students under 25Helps keep you from spending more than you have — no overdraft feesSole ownership for ages 16+$XXXX or $0 monthly feeWe’ll waive the monthly maintenance fee each statement cycle that you:Are an owner of this account under age 25 and qualify as a StudentORAre an owner of this account under age 18ORAre enrolled in Preferred RewardsTo view all fees see the Personal Schedule of Fees. You can also refer to our Clarity Statement for additional information.About SafeBalance®:A smart start for students – no monthly fee for Students under 25Helps keep you from spending more than you have — no overdraft feesSole ownership for ages 16+$XXXX or $0 monthly feeWe’ll waive the monthly maintenance fee each statement cycle that you:Are an owner of this account under age 25 and qualify as a StudentORAre an owner of this account under age 18ORAre enrolled in Preferred RewardsTo view all fees see the Personal Schedule of Fees. You can also refer to our Clarity Statement for additional information.Bank of America Advantage Plus Banking®About Advantage Plus:Multiple ways to waive the monthly feeOption to set up Balance Connect® for overdraft protectionOption to buy paper checksBank of America Advantage Plus Banking®About Advantage Plus:Multiple ways to waive the monthly feeOption to set up Balance Connect® for overdraft protectionOption to buy paper checksBank of America Advantage Relationship Banking®About Advantage Relationship:No fees on select services and additional accountsEarns interest See ratesOption to set up Balance Connect® for overdraft protectionPaper checks available (no charge or discounted depending on check style)Bank of America Advantage Relationship Banking®About Advantage Relationship:No fees on select services and additional accountsEarns interest See ratesOption to set up Balance Connect® for overdraft protectionPaper checks available (no charge or discounted depending on check style)Which is best for you?Easy, anytime accessEasy, anytime accessVisit us at thousands of financial centers and ATMs or have a quick chat with Erica, your virtual banking assistant.Visit us at thousands of financial centers and ATMs or have a quick chat with Erica, your virtual banking assistant.Visit us at thousands of financial centers and ATMs or have a quick chat with Erica, your virtual banking assistant.Convenient ways to pay24/7 securityUse…
Pros and Cons of Opening a Second Checking Account
Pros and Cons of Opening a Second Checking Account | MyBankTracker Two is sometimes better than one, and although that may be true for some things in life, what about your checking account? Can having two checking accounts make life easier? Or will it just make it harder to manage your money? Another checking can either help you budget money more easily, or it can prove to be a nuisance that is not worth the extra effort. View the pros and cons for yourself to figure out if a second checking account can benefit your lifestyle. Pros Managing funds is easier Managing funds between two different accounts can help you to organize your expenses into categories. Using one account for bills and another for leisure can be a strategic budgeting method to prevent yourself from overspending. With two accounts, trying to figure out if you can do afford to do something may take less effort on your part. All you have to do is check the balance of the account you use for leisure spending and you’ll know what you can and cannot afford. Say you have a total of $2,000 for the month. Rent is $800, utilities are $200, food is $300, and other expenses (such as gas or transportation) costs $200. That totals of $1,500. That means you have $500 to left over after you pay your bills, but that $2,000 balance in your account can be misleading. With two accounts, you can set aside money for non-essential spending. A smart way to divide the $2,000 would be to put $1,700 into your account to pay bills (that way you have a cushion), and the other $300 into your leisure spending account. By managing funds in this manner you’ll have a clear idea of how much money is at your disposal. Access to funds if one bank account is unavailable Routine maintenance, a computer glitch, or fraud suspicion could leave a bank account unavailable for a short period of time. This can be easier to avoid when you have checking accounts from two separate banks. Multiple bank and ATM options Opening two checking accounts from different banks can provide multiple banking locations and ATM options. Most ATM machines charge a fee to withdraw money if the bank is not in its network. Certain banks such as Ally and Capital One 360 (*must be within the Allpoint network) allow customers to access ATMs anywhere, for free. Opening a second account at an online-only bank that offers this feature might help you save money on ATM fees. Cons Vulnerable to overdraft Someone that essentially lives paycheck to paycheck may not benefit greatly from a second checking account. Money located in multiple accounts can leave you vulnerable to being charged overdraft fees, which can cost as much as $35 each time. In addition to these expensive charges, two accounts that are consistently on the cusp of going negative would probably stress you out More to manage A second checking account from a different bank means you also have to review two accounts to ensure no fraudulent activity or faulty charges are present. You will also have separate debit cards, two checkbooks, and online banking information to also keep track of. Having multiple checking accounts requires some organization on your part, and if you have a difficult time with this, it probably isn’t right for you.