Here Are the Pros and Cons of Owning 2 Bank Accounts

Your partner wants to open a new bank account with a different bank, but you like your old one best. Should you close your old account? Keep it open? It's questions like these that make banking nerds like us quake with excitement. In short, there are pros and cons to each option.

Keeping two bank accounts open gives you flexibility and security. But it also makes tracking your money more complicated. And if your banks charge fees, you could pay double. Read on for a more in-depth dive into the pros and cons of owning two bank accounts.

Pro: Flexibility

Keeping two accounts open allows you to use one when the other breaks down. Sometimes, banks have issues. They close your account for no reason you can tell. Next thing you know, you can't access your money for weeks!

But having a backup account gives you flexibility.

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Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

If you open two checking accounts, you can boost your maximum ATM withdrawals. Banks set withdrawal limits independent of each other. Say one bank limits you to $100 daily, and the other limits you to $200 daily. You can drive to two ATMs to withdraw $300 total daily.

Finally, you can boost your earnings by transferring some money to the account with a better interest rate. The better your rate, the more you can earn.

Pro: Security

The FDIC insures bank accounts up to $250,000 per bank. Banks are insured separately. By spreading your deposits around multiple checking accounts, you can protect more of your savings. If your bank fails, the FDIC will return your savings up to the limit.

With two savings accounts at separate FDIC-insured banks, you can insure $500,000 worth of deposits. The more bank accounts you open at separate FDIC-insured banks, the more money the FDIC will protect. Owning two bank accounts is a smart way to keep your money safe.

Pro: Organization

You can open two savings accounts to keep money organized. You can designate one account as your emergency fund and the other as your vacation fund. It's extra work, but it could be worth the effort if it brings you peace of mind.

Tip: Use a bank that offers bucketing to stay organized and keep your bank accounts to a minimum. Bucketing lets you split your money into designated categories without forcing you to open multiple accounts at separate banks.

Con: Hassle

Keeping two bank accounts open can be a hassle. It's one thing to own a checking and a savings account -- those pair together like peanut butter and jelly. They serve different needs. But two checking accounts? That's where things can get complicated.

Take direct deposits. If you share finances with a partner, you both must decide whether to split deposits between multiple accounts or use one as the main account. Sending money between accounts could take days as deposits settle. In short, owning two bank accounts is a hassle.

Con: Fees

If one or more of your bank accounts charges maintenance fees, you're paying more than you would with only one account. It's the most straightforward con on this list. You can also avoid it by sticking to the best savings accounts -- most won't charge you maintenance fees.

Other fees matter, too. Some savings accounts impose account minimums, and these may charge you for leaving too little money in your account. Some checking accounts charge overdraft and insufficient funds fees for overdrawing your account.

The more bank accounts you own, the more fees you must track. Good news: the best checking accounts keep overdraft fees to a minimum or skip them entirely, so there's that.

Should you own two bank accounts?

Yes, if you're pairing a checking and savings account. Otherwise, it's more complicated. If you want greater flexibility and security, opening two accounts of the same type can give you that. To avoid hassle and fees, consider sticking with one account per type.

If you open a second bank account and change your mind, beware of closing the account too soon. Bank accounts sometimes charge early account closure fees of $5 to $50 when you close an account within 90 days of opening it. Keep your account open for a bit longer to avoid paying fees.

You may benefit from owning two or more of the same type of bank accounts. It doesn't hurt your credit score, and it's a common practice. Weigh the pros and cons to decide whether owning two or more accounts is right for you.