Jul 12, 2024
According to the FDIC, around 96% of U.S. households have money in a checking or savings account at a bank.
This isn’t surprising, given that checking accounts are essential for conducting basic financial transactions such as collecting a paycheck or paying bills.
Advertisement
But how many checking accounts should you open, and is there such a thing as too many? The answer might surprise you.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
You're allowed to have as many checking accounts as you want
Technically, there is no limit to the number of checking accounts you can hold. In fact, you can open multiple accounts with the same bank or have numerous accounts with different financial institutions. Multiple accounts won't hurt your credit score, and there are potential benefits associated with maintaining more than one checking account. For example:
You can stay below the FDIC-insured limits. The FDIC protects your banking deposits up to at least $250,000 at each eligible bank. If you have a large sum of money, you may want to spread it across multiple accounts to stay within these limits.
Multiple accounts can be more convenient. Multiple bank accounts may allow you to take advantage of different features or perks. For example, one bank may be closer to your house and easier to visit in person, while another may offer larger mobile deposits or no-fee banking.
You can maintain different accounts for different purposes. Separating personal and business checking accounts often makes sense if you're self-employed. Or, if you share finances with a partner, you may want to have both joint and separate bank accounts.
As you can see, multiple accounts aren't necessarily a problem and can sometimes be a good thing.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
But too many checking accounts can lead to big trouble
While there's no legal limit to the number of checking accounts you can open, having too many accounts could cause problems. Here's why.
You could get hit with monthly maintenance fees. Many checking accounts charge monthly maintenance fees if you don't maintain a certain minimum daily balance or have money directly deposited each month. If you have multiple accounts, it may be hard to meet all the fee waiver requirements, and you could spend a lot of money on bank fees.
Advertisement
Overdrafts or bounced checks may be more likely. Spreading your money across too many accounts increases the risk of overdrawing your account or writing bad checks. This can lead to added fees, not to mention a negative account balance.
You could hurt your banking history. Overdrafts, bounced checks or negative balances could hurt your bank account history. ChexSystems maintains records of problems with bank accounts. These reports are similar to credit reports, and a poor record can make it harder to open accounts in the future.
Increased fraud risk. If you’re trying to keep track of several banking accounts, you may not notice when problems, such as fraud or identity theft, arise. The longer these issues go undetected, the more damage they can cause.
These drawbacks are worth considering when deciding how many accounts to keep open.
How many checking accounts should you have?
Ultimately, the right number of checking accounts for each person depends on their financial situation. However, as a general rule, you should make sure to:
- Avoid opening multiple accounts with fees
- Limit the number of bank accounts to what you can easily manage
- Only open a new checking account if you have a specific purpose in mind
Most people probably don’t need more than two or three checking accounts. However, if you have a good reason to open more, monitor them closely to avoid any problems that could impact your finances.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
