Can you have two checking accounts in the same bank?
- Banks will allow you to open more than one checking account at the same time.
- Multiple checking accounts may be ideal for spouses or parents.
- Keep track of minimum account balance requirements if your bank charges a monthly service fee.
Banks allow you to have more than one checking account at the same time. There are no restrictions on the number of accounts you can open in a financial institution.
But is it wise to open multiple accounts in the same bank? Here’s how to determine if it’s worth exploring your situation.
Who Should Consider Opening Two Current Accounts?
First, you’ll want to evaluate whether opening many
It is a suitable option.
It may be a perfect fit for couples, says Grace Young, professional and managing director of CFP® at Midtown Financial Group.
“Often couples have joint checking accounts because of course, it makes sense that they have joint expenses,” Young says. “That’s great, but I’m a firm believer that everyone should have their own individual account as well.”
Young adds that you can open a second checking account for personal goals, and use the account without having to discuss withdrawals or deposits with someone else.
Parents may also consider opening a checking account with their teens to teach them money.
“This gives your kids lessons on how to manage their finances,” Young explains. “Unfortunately, not many schools teach the basics of financial management. This is one of the reasons we see people wearing checks or being subjected to overdraft fees.”
If you open a checking account for a minor, most financial institutions will specify that the adult must open the account with the minor. Financial institutions may place age restrictions on checking accounts for teens. Generally, banks require a child to be at least 13 years old.
Pros and cons of opening two checking accounts in the same bank
Young says opening checking accounts with the same bank can be convenient because you are creating banking relationships.
Banks often reward customers who apply for multiple banking products. You can earn higher interest rates on savings accounts or waive the monthly service fee on other bank accounts.
Relationship banking may also help you achieve long-term goals such as applying for a car loan or a mortgage.
However, Young also points out that it is also a good idea to have relationships with multiple financial institutions, so that you have greater flexibility.
“The most recent example of this is the emergence of the public-private partnership for the first time,” Young adds. “Existing clients of financial institutions have preferred service and access.”
How to manage multiple checking accounts
Young says having multiple checking accounts can be an effective way to manage your overall cash flow. You can allocate a specific purpose to each current account – one account for fixed expenses and another for miscellaneous expenses.
Depending on your bank, you’ll want to be mindful of bank charges. Many traditional banks charge a monthly service fee if you do not maintain a specific daily account balance. Young advises keeping track of minimum balance requirements to avoid monthly service fees.
Young also says that you might consider adding beneficiaries to your bank account.
When the owner of a joint bank account dies, the surviving owner can take full control of the bank account. However, if you assign a beneficiary, both the owner and the remaining beneficiary will have access to the bank account.