How Many Bank Accounts Should I Have?

Is it enough to have one bank account or should you open multiple ones? What is the best number of cards for your needs? There is no one-size-fits-all answer to this question as it depends on the person’s lifestyle and financial targets.

While it might not be enough to have a single account for all goals, having too many of them may also be dangerous for your financial stability. Keep on reading to learn more about various types of bank account options and how many will suit your aims. Are you interested in bank issues? Let’s satisfy your interest and sort out all the details.

Types of Accounts You Should Have

If you already have one bank account, you may wonder if it’s enough for all your monetary needs. In fact, some consumers consider they don’t need to open more than one bank account.

What is the best number of them? What if several bank accounts can make your life even easier? They may help you feel more in charge of your finances. Generally, there are several offers you can compare and opt for.

You may have a checking bank account for bills, a separate one for other expenses, a savings bank account for your emergency fund, and another one for other financial goals.

We will talk more about each option and why you may need to open it, but the final choice is yours. Consider the pros and cons of each option to choose wisely.

Checking Account for Bills

Let’s start with the most common option. If you are employed or self-employed, you definitely need a place to store your income, sometimes even with interest. A checking option is created for flexible spending. This is a place where most of your money is withdrawn and deposited.

Once you receive a paycheck, you may pay the bills using this money. How many checking bank accounts for bills can you open? What are the interest rates? You can have one of several of them, but some service providers limit this number.

This option is designed for paying the bills and covering mandatory monthly payments. Such costs usually take up a big percentage of your monthly paycheck. For instance, you may cover such expenses as:

  • Utility bills: internet, electricity, gas, cell phone, water
  • Housing: mortgage, rent, property tax
  • Groceries: without eating out
  • Debt: student loans, car loans, credit cards

Checking Account for Other Expenses

This is another suitable option for your monetary needs and so-called “lifestyle” expenses. You may have a portion of your salary here and utilize it for your “wants.” On the contrary, the first option is meant for your “needs.”

Hence, this bank account might not be as important as the previous one, but it’s still helpful for separating your needs and wants and sticking to your budget. And you still should take care of the interest rate.

A set amount of money can be transferred into this bank account every salary day to cover additional costs and everything that brings you joy. Check the interest rates with your service provider. It is a great way to show you when you reach zero and should stop spending to prevent getting into debt. For instance, you may cover such expenses as:

  • Eating out: food delivery, restaurants
  • Entertainment: hobbies, subscriptions, movies
  • Home essentials: detergent, toothpaste, paper towels.
  • Personal care: gym membership, a spa day, beauty salon
  • Miscellaneous: shopping, etc.

Savings Account for Your Emergency Fund

Do you have enough money to cover unforeseen costs? Even if you get your pay on time and have a stable source of income, it’s absolutely necessary to have an additional safety net.

Having an emergency fund is a must these days.  During challenging times or economic disruptions, your emergency fund is what can really protect you and help you pay for unpredicted expenses and bills and avoid interest on credit tools. You can’t open too many bank accounts at the same time.

You should turn to your local bank or financial institution and ask about certain restrictions or possible limitations. Experts advise consumers that it is best to keep at least three to six months’ worth of living expenditures, but the more, the better. For instance, you may cover such expenses as:

  • Auto issues: accidents, new battery
  • Home repairs: severe weather conditions, plumbing, a leaky roof
  • Unemployment: job loss, getting laid off, fired
  • Medical emergency: sudden illness, surgery

Savings Account for Other Goals

A separate bank account for your other financial goals can also be useful. You may open a short-term or a long-term goals savings bank account.

You will be able to pay for planned expenses and your monetary aims from your own pocket without getting a high-interest or low-interest loan or any other crediting tool.

This type of bank account offers the best protection for your money. You will be able to track your financial progress over some time.

For instance, you may have such near-term savings goals as:

  • Annual costs (insurance, car registration)
  • Small activities (concerts, events, road trips)
  • Upgrades (new laptop or mobile phone)
  • Special gifts

Besides, you can have such long-term savings goals as:

  • New baby
  • Wedding ceremony
  • Expensive travel
  • Down payment for a new home

How to Manage All Bank Accounts?

This is a good question, as you may not know how to manage multiple bank accounts. Once you decide to open several of them, it’s essential to understand whether you can cope with them on your own and if you really need them.

There is a great budgeting strategy called “split it before you get it.” It means you should allocate a certain percentage of your monthly deposit into each of your bank accounts. You may even ask your recruiter to put a particular percentage or sum of your salary into each of them.

These automatic payments will help you split your paycheck without being tempted to overspend. This is a great tip for Americans who tend to go on a spending spree or have trouble with debt repayment.

When you know exactly how much you have in each bank account for certain spending categories, you will have to stop when the balance reaches zero.

Does Having Many Accounts May Cause Problems?

Experts say that having numerous bank accounts may be beneficial on one hand. On the other hand, it comes with certain drawbacks. If you aren’t an accountable person and don’t stick to your budget, you might have problems.

If you are responsible with your personal finances and don’t overspend, numerous bank accounts may be a powerful tool for your monetary management. They offer people improved budgeting, additional funding options, and boosted flexibility with the option of reaching your short- and long-term financial aims.

Yet, you may encounter potential issues if you don’t take them seriously. For instance, you might have higher minimums to maintain. It can be hard for consumers who feel pressed for cash.

Moreover, you need additional monetary upkeep and time to track your bank account with equal attention to spot any disruptions. Finally, it takes a lot of effort to keep up with so many deposits and bank accounts so it might be much easier to have just a couple of cards for your needs.


There are no restrictions concerning the number of bank accounts you can open. The question is whether you can handle multiple cards and be responsible with your finances. It may be difficult to handle numerous bank accounts.

It can be difficult to handle numerous bank accounts. You need to have a budget and stick to it. It can be useful to ask your employer to split your paycheck into every your bank accounts to help you budget without spending too much.

It can be beneficial to have more than one bank account for various financial purposes. If you start budgeting and aren’t sure whether you will be able to cope with multiple ones, it’s better to open one bank account at first. Watch for potential fees if you decide to have several.