August 21, 2021

Is It Bad to Have Multiple Checking Accounts?

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Thinking of getting another checking account? First, find out the effects of multiple banks on your credit score and finances.

There are plenty of reasons why it makes sense to have multiple checking accounts.

Maybe you want to take advantage of new account bonuses. Or you want the high APY of an online bank and the convenience of a brick-and-mortar bank.

Here's the good news: It's totally okay to open multiple checking accounts as long as you keep the accounts in good standing. Learn how to safely keep multiple checking accounts in the guide below.

Citibank

Citi Priority Account - Up to $1,500 Cash Bonus

Expires 1/4/2022
  • Earn up to $1,500 cash bonus when you open a new account with required activities
  • Open a new eligible checking account in the Citi Priority Account during the offer period 10/5/21-1/4/22
  • Within 20 days of opening, deposit $50,000 in New-To Citibank funds between the new checking and savings accounts
  • Maintain a minimum balance of $50,000 in the checking account for an additional 60 consecutive calendar days from the 21st day
  • After all required activities are met, the cash bonus will be deposited to your account within 90 calendar days

Does having multiple checking accounts hurt your credit?

The number of checking accounts you have, and the balance of those accounts, does not affect your credit score. Your credit score is more influenced by credit accounts and debt.

It's fine to have more than a couple bank accounts as long as they are in good standing. This means you have a positive balance and avoid excessive overdrafts.

Average number bank accounts per person
On average, Americans own 5 accounts across all types of financial institutions. Most consumers spread them across three different banks.[1]

How many checking accounts should you have?

There's no limit on the number of checking accounts you can open. The number of checking accounts you should have will depend on your personal finance goals.

Here are a few reasons why you might need multiple checking accounts:

  • Almost everyone needs a basic checking account
  • Business owners can separate finances with a business checking account
  • Consider opening a joint checking account with a spouse or partner
  • Opt for a high-yield checking if you want high APY and accessibility

Just remember, multiple checking accounts means more maintenance fees. Usually, you need to maintain a certain balance to waive monthly service fees. Stay on top of your finance to avoid unnecessary fees.

Note: The Federal Deposit Insurance Corporation (FDIC) limits how much money is insured in your checking account. The standard FDIC coverage amount is $250,000 per depositor across all accounts with the same bank.

Chase
Member FDIC

Chase Total Checking® - $225 Bonus

Expires 1/19/2022
  • New Chase checking customers enjoy a $225 bonus when you open a new Chase Total Checking® account and set up direct deposit
  • Access to 16,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.

Is it ok to bank with more than one bank?

It's fine to have a checking account at more than one bank. You might want to do this for reasons like:

Can you have multiple checking accounts at the same bank?
You can have more than one checking account with the same bank. Some banks even give you relationship benefits in the form of a higher savings interest rate or waive the monthly fee.

Is it bad to have bank accounts at different banks?

It's completely okay to have checking accounts at different banks. Just make sure you can successfully manage each account. You don't want to accidentally use the wrong account or bounce checks. Banks can close your account for these mishaps.

If you have more bank accounts than you can carefully manage, then you have too many accounts and that's a bad thing.

Pros and Cons of multiple checking accounts

Here are the advantages and downsides of more than one checking account to consider:

Pros

  • Can be easier to manage finances
  • Take advantage of new checking account bonuses
  • Married folks and partners can easily separate finances
  • Cover more of your money under FDIC (if accounts are with different banks)
  • Separate accounts prevent business and personal expenses from being mixed up (and decrease risk of fraud)

Cons

  • Requires good organization
  • Monthly service fees can add up
  • Greater risk of overdraft and insufficient funds fees
  • Harder to keep track of deposits and withdrawals
  • Harder to meet minimum balance requirements for multiple accounts

5 types of checking accounts

There are multiple kinds of checking accounts, each with its own perks and features. Consider your financial needs and goals to choose the right fit for you.

Basic Checking Account
A basic checking account is best for performing everyday transactions, like withdrawing money, paying bills, and making purchases. It usually does not pay interest; it also comes with checks and a debit card.

High-Yield Checking Account
These interest-bearing accounts allow you to earn interest on your checking balance. Some banks also call this type of account by a different name, like "Rewards Checking" or "Premium Checking."

Business Checking Account
If you own a small business, it's best to keep your business expenses separate from your personal ones. There are lots of business checking account options for all business sizes - from small freelancers to enterprises.

Student/Teen/Kids Checking Account
Student checking accounts are for college students, usually age 17-24. You must be enrolled in a school to open an account.

Teen and kids accounts are usually for kids younger than 18; they require parent access and approval to open.

Senior Checking Account
These special checking accounts are designed to offer more stress-free banking for seniors. They may include advantages like lower fees and free checks.

Compare Checking Accounts

Citibank

Citi Priority Account - Up to $1,500 Cash Bonus

Expires 1/4/2022
  • Earn up to $1,500 cash bonus when you open a new account with required activities
  • Open a new eligible checking account in the Citi Priority Account during the offer period 10/5/21-1/4/22
  • Within 20 days of opening, deposit $50,000 in New-To Citibank funds between the new checking and savings accounts
  • Maintain a minimum balance of $50,000 in the checking account for an additional 60 consecutive calendar days from the 21st day
  • After all required activities are met, the cash bonus will be deposited to your account within 90 calendar days
Chase
Member FDIC

Chase Total Checking® - $225 Bonus

Expires 1/19/2022
  • New Chase checking customers enjoy a $225 bonus when you open a new Chase Total Checking® account and set up direct deposit
  • Access to 16,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
CIT Bank
Member FDIC

CIT Bank Savings Connect - 0.50% APY

  • Earn a competitive high yield savings rate with access and convenience features of an eChecking account.
  • Earn up to 0.50% APY on Savings Connect and 0.25% APY on eChecking.
  • Savings Connect is a tiered interest rate account dependent on the account holder opening a linked qualifying eChecking concurrently and makes periodic qualifying deposits.
    • Base Tier: (0.42% APY, 0.399% Interest Rate) A minimum qualifying deposit of $200 is not deposited each month into the linked eChecking or the eChecking account is closed.
    • Upper Tier: (0.50% APY, 0.499% Interest Rate) A qualifying deposit of $200 or more is deposited into the linked eChecking account each month.
    • APY assumes a qualifying deposit of $200 or more is made to the linked eChecking account each month.
  • Minimum of $100 for both the Savings Connect and eChecking to open ($200 total).
Chase
Member FDIC

Chase Business Complete Banking℠ - $300 Bonus

Expires 1/20/2022
  • Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
  • More ways to waive fees. Multiple options to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card
  • Built-in card acceptance. Accept card payments anytime, anywhere in the U.S., and get transparent pricing with Chase QuickAccept℠.
  • Same-day deposits with QuickAccept℠. Free up the cash you need to keep your business moving forward with same-day deposits at no additional cost.
  • Alerts to help you stay on top of your account activity.
  • Easy account management through Chase Business online and the Chase Mobile® app.
  • Unlimited electronic deposits, ACH and Chase Quick Deposit℠.
  • Convenient access to 16,000 ATMs and more than 4,700 branches.
HSBC
Member FDIC

HSBC Premier Checking - $450 Welcome Deposit

Expires 1/5/2022
  • Get a $450 Welcome Deposit for eligible new customers who open a new HSBC Premier checking account and complete the following qualifying activities.
  • Open your new HSBC Premier checking account online by January 5, 2022; and
  • Make recurring monthly Qualifying Direct Deposits totaling at least $5,000 from a third party to your HSBC Premier checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening.
  • You will automatically receive the $450 Welcome Deposit in your new HSBC Premier checking account approximately eight weeks after completing all qualifying activities. It's that simple.
  • Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.

Bottom Line

There's no set number for how many checking accounts you should have. How many accounts you should have depends on your personal circumstances and financial situation.

If you're in the market for a checking account, be sure to check out these free checking options and bank bonuses without direct deposit requirements.

References

Amber Kong is a content and creative at CreditDonkey, a bank comparison and reviews website. Write to Amber Kong at amber.kong@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

How Many Bank Accounts Should I Have?

How Many Bank Accounts Should I Have?

4 Types of Checking Accounts

Types of Checking Accounts

Best Free Checking Accounts

Best Free Checking Accounts

Best Business Checking Account

Best Business Checking Account

Best High Yield Checking Accounts

Best High Yield Checking Accounts

Why You Need a Business Bank Account

Why Business Bank Account


How to Open a Checking Account

Opening a checking account is simple once you've done your research. Find out what you need to know below.
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