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How Many Bank Accounts Should I Have | Full Guide

It is not bad if you constantly ask yourself, ‘how many bank accounts should I have?’ Although there is no conventional answer to how many bank accounts you can keep.

Different bank accounts make keeping track of your spending habits interesting. But, when it becomes many, it makes the tracking method difficult.

Reading further, you will see how many bank accounts you should have and how it helps you achieve your financial goals.

What are the Types of Bank Accounts you should Have?

The key factor to knowing the types of bank accounts you should keep is understanding your needs.

#1 Savings Account

This account type comes in three variants. Let’s see the different savings accounts and the different purposes they serve.

Although savings accounts keep come with restriction on the number of withdrawal you can make, other types of savings account may work in favour of your needs.

Regular Savings Account

This is the most common savings account where you stack up your savings. You earn a little interest and withdraw from the account without restrictions.

Related: 10 Cheap Ways To Make Money In Retirement

Online Savings Account

Given to the high rise of online banks that offer mouth-watering deals by the way, you need to have an online savings account where you can enjoy quick service with just a snap.

Before this can be done, you will be required to link an existing checking account with your savings account.

Certificate of Deposit

This account locks your money in the account for 6 to 18 months depending on your selection.

If you are one who needs cash on impulse, this might not be the best account type to keep.

#2 Checking Account

Ths type of account is one that your paycheck comes into and it gives you the most convenient access to your money and is basically used fror bill payment.

Having a checking account offers you the option of performing as many transactions as you would in a given month.

#3 Retirement Investment Accounts

You need to be extra careful when choosing this as its basic role is to help you stay on track with your retirement savings goal.

Applying for withdrawal prior to your retirement date can be very dangerous and I’m sure you don’t want to know what it takes.

Types of retirement accounts you should leverage on and stay on top of your retirement plans are:

  • 401(k)
  • Individual retirement account (IRA)
  • 403(b) or 457(b)

#4 Non-retirement Investment Account

In the event that you still have extra bucks after the retirement account, this might be a great option to consider.

This account ytpe will help you make more savings beyond ones already existing.

Also read: How Much Money Should I Be Making: Personal Finance Strategy

#5 College Saving (529b)

The 529b account is one that helps you save money for your children’s education from the elementary stage through college and after college.

A major advantage of saving with this account is that every withdrawal made form this account to school epenses are void of taxes.

Pros and Cons of Having Multiple Bank Accounts


Basically, having many bank accounts offer you the advantages that several accounts offer especially with high interest and flexibility.

Secondly, people will rather open as many accounts as possible just to take advantage of the sign-up offers. Most savings accounts give up a few dollars as sign-up offers.

More so, having many bank accounts helps you to make proper financial decisons and assign specific tasks to your money.


Opening multiple bank accounts are difficult to manage and in turn, makes you run the risk of suffering from an overdraft fee.

There is always a delay when you want to transfer funds between accounts. Ths is solely because your banks must carry out a verification exercise on the banks.

So, it takes up to 3 days business days to fix.

How to Manage Multiple Bank Accounts

Online banking and budgeting apps have made it so easy to manage multiple bank accounts.

You can also choose to automate your finances in such a way that you can make transfers to your savings account and make your bill payment from your bill account.

Final Thoughts: How Many Bank Accounts Should I Have?

There is no correct or incorrect answer to the question above. All you need to do is making sure that they align with your goals.

Also, make sure that the accounts you open simplify your life and make you more money as it will be really nncessary of any of the accounts isn’t doing these things.

However, if you can gain clarity on how you spend your money, having multiple bank accounts could be an intelligent way to go.


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