Sometime around the period you started your first job your parents probably helped you open a checking account. You've maintained this account through the years and haven't seen any reason for change. How about opening another account? No, multiple accounts aren't just for the wealthy. Having more than one checking account is a great idea for everyone, including you.
Great for Smaller Saving
When it comes to saving money, having a savings account is often the way to go because of their interest earning potential. However, if you don't have a lot of money you're able to save away, you could run into fees. Generally, checking accounts come with lower minimum balance limits than checking accounts do. If you want to create an account just for something small, such as a vacation fund, this is a great way to do so without the higher fees.
Fewer Fees
When you opened your account, you weren't traveling often. However, after graduating college, you've landed a role that has you out of town more than you're home. If you travel a lot and your bank is local, you know that out-of-network ATM fees can add up. Opening an additional account at a larger bank allows you to access your money when away without these fees, while ensuring you maintain your relationship at your existing financial institution.
Easier Access to Saved Money
In a perfect world, you can save money and never worry about tapping into it. However, this is not the case for most people. Consider keeping your existing savings account, but opening another checking account to also put extra money in. In addition to not worrying as much about balance minimums, you likely will have more liberal withdrawal limits and fewer penalties.
More Leverage for Loans
All financial institutions are different when it comes to their loan offerings. One bank can look at your finances and deny you, whereas another can look at the same information and approve you with a great interest rate. Having a reputation and relationship at more than one bank gives you more leverage when you need a loan, such as for a mortgage, allowing you to easily field through the offers and see which is best for you.
Having more than one checking account can give you greater focus for your financial goals and save you money. This is true whether you open an additional account at your existing bank or add another institution to your portfolio.
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