How Many Checking Accounts Should I Have? Checking accounts provide a secure storage facility for funds used to pay bills or make purchases. To facilitate transfers between accounts. A checking account might be connected to a savings or money market account.

It’s a good idea to have at least one checking account. But you can have many checking accounts at the same bank or at separate banks. There are several reasons to have multiple checking accounts. The number of accounts you should open is determined by your financial needs and aspirations.

What is the Ideal Number of Bank Accounts?

Tiffany “The Budgetnista” Aliche, a personal finance expert and author, says the answer is actually rather easy. She shared her best budgeting ideas at One United One Transaction, a conference focused on addressing the racial wealth gap.

What is the Ideal Number of Bank Accounts

“There are basically four buckets”, Aliche explained. “Checking, checking, savings, savings”, says the narrator.

1: Bill-Paying Checking Account

How Many Checking Accounts Should I Have? Set up a checking account to pay your payments first, according to Aliche. This account will be used to pay for housing, values, insurance, automobile loan, and any other bills you have.

You should not receive a debit card for this account, according to Aliche. You won’t be tempted to spend your bill money on anything else this way. You can utilize your secondary checking account to make purchases.

2: Other Costs Checking Account

This account is for anything other than paying your bills. It could be used for entertainment, restaurant meals, or as a gift for friends and family. Attach your debit card to this account because the funds are intended for spending.

3: An Emergency Fund Savings Account

An emergency fund is a money set aside for when something unexpected occurs. Perhaps you’ve lost your job, or your car has broken down, or you’ve gotten a large hospital bill. Because you only use this money in an emergency. It’s best to keep it separate from the accounts you use for bills and other savings purposes.

Most experts advise saving three to six months’ worth of necessary costs in an emergency fund. If you have a one-income household. You should have six months’ costs, and if you have a two-income home. You should have three months’ expenses.

4: A Separate Savings Account for Additional Objectives

How Many Checking Accounts Should I Have? Finally, there’s a separate account for long-term savings. You may put money into this account to save for a car, a down payment on a house, or your wedding.

You could even create unique savings buckets for each goal in one account if you use a bank that allows you to save for multiple goals. This makes keeping track of how much money you’ve set aside for each purchase much easier.

How do you Handle these Four Bank Accounts?

“Split it before you get it”, Aliche termed her planning strategy. Ask your employer to deposit a set percentage or dollar amount of your paychecks into each of these four accounts if you receive direct deposits.

For instance, you may deposit 35% of your income into your bills checking account, 20% into your spending account, 20% into your emergency fund, and 15% into your second savings account.

How do you Handle these Four Bank Accounts

You won’t be tempted to spend money you don’t have if you split your paycheck before it reaches your bank account. You’ll also work toward your savings objectives on a regular basis without even realizing it.

You’ll need to do the mathematics ahead of time to split it before you get it. Calculate how much you spend each month on all of your payments. How much you’ll need in an emergency fund. How much you’ll need for a big buy, and how much you have leftover.

Should I have Multiple Checking Accounts?

How Many Checking Accounts Should I Have? The answer to this issue is primarily determined by what you require from a checking account and how you handle your finances.

At the very least, you should have one bank account where you may deposit money, pay bills, and make purchases. If you have a traditional bank account, you might want to consider creating a second checking account with an online bank to reduce fees.

Should I have Multiple Checking Accounts

Consider what you’ll need each checking account for and how you’ll use it when deciding how many to open. Then think about what you’ll need to do to keep track of those accounts.

Can I have Multiple Checking Accounts?

According to, A person’s ability to have multiple checking accounts is totally up to them. You can open as many checking accounts as you like, whether they’re with traditional banks, credit unions, or online banks.

However, the amount of money you can retain in your checking account that is FDIC guaranteed is limited. The Federal Deposit Insurance Corporation guarantees bank deposits up to certain levels, including money in checking accounts.

Can I have Multiple Checking Accounts

For each account ownership category, the typical FDIC coverage amount is $250,000 per depositor, per FDIC-insured bank. As a result, if you have numerous checking accounts at the same bank, as well as savings accounts, money market accounts, or CD accounts, your total coverage amount is $250,000.

The good news is that the depositor limit of $250,000 applies to individual banks. So each bank where you have a checking account would insure you up to those limits.

Multiple Checking Accounts: How to Manage Them

How Many Checking Accounts Should I Have? There are a few options for managing multiple checking accounts if you have more than one. If you haven’t previously done so, sign up for online and mobile banking for each account. You may check your balances, arrange bill payments, and transfer money between accounts from anywhere using online and mobile banking.

You can also add money to your accounts without going to a branch by using a mobile check deposit. Set up alerts for each account after that. This can help you avoid fines and reduce the chances of bank fraud.

Multiple Checking Accounts

Finally, evaluate your accounts at least once a quarter to ensure that they continue to meet your requirements. Examine your transaction history to discover how often you use each one. Examine any fees you’re paying, as well as any incentives each account offers, such as loan discounts or charge exemptions.

Consider if you want to keep a checking account open or close it if it appears to have outlived its purpose. Make sure you close a bank account correctly if you decide to do so. Cancel any regular activities, including as deposits or automatic withdrawals and transfers, and shred any checks or debit cards that remain.