one of my friend has 3 bank accounts and encourages me to have more though everytime i asked him why he just answers "because its good man..." is there any real benefits to this or he just wanna screw me like he screwed him self?
2006-07-20 18:03:37 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
No, unless you have deposits that exceed $100,000. Financial Institutions backed by FICA, have their accounts insured up to $100,000. If you had $300,000 in deposits, it would be beneficial to disperse that among three bank accounts. Other than that, there are no benefits. For that matter, many banks charge fees for accounts that are under certain balances. Having multiple accounts could mean multiple monthly fees.
2006-07-20 18:10:56 · answer #1 · answered by angling_cyclist 3 · 0⤊ 1⤋
Many banks and credit unions have savings accounts for minors so even if you are not yet 18 you can open one. A savings account is easier to open and probably wiser than a checking account. Fees DO vary so ask questions. Pick up a brochure and READ it. Talk to a person at each of three banks or credit unions and decide which seems institution seems to best fit your needs. Consider convenience of locations. If you may go away to college, be sure there is a branch there. Start reading financial magazines but don't believe everything you read. When you have enough money saved to invest, consider a no-load mutual fund. Do not invest in funds through the bank as they are often load funds and not your best buy. Congratulations on thinking about your financial future while you are young. You will be miles ahead of the pack.
2016-03-27 01:42:50 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It depends ...
If you are pretty rock solid about keeping track of your finances, being established at two banks can prove helpful. For example, if one bank doesn't offer a good business acct but the other does, they already know you! Also, for FDIC Insurance reasons - you are best off at two banks IF YOU HAVE $100,000+.
On the other hand having say a Certificate of Deposit at one bank, and a checking/savings at another does no harm - its good consumer skills to find the best interest rate out there (check www.bankrate.com if interested).
If you think it'll be too much hassle ... it will be!
Hope this helps!
2006-07-21 19:42:50 · answer #3 · answered by Zach 2 · 0⤊ 1⤋
What country are you in? If you are in a country that charges a lot of account keeping fees, its actually a bad thing!
In Australia most banks charge at least $5 a month account keeping fee, plus other fees.
2006-07-20 19:00:42 · answer #4 · answered by ♣ 4 · 0⤊ 0⤋
Too many accounts can be a real hassle at income tax time; However it is nice to have a back-up bank account incase you have trouble with one of your debit cards.
2006-07-20 18:11:24 · answer #5 · answered by miss_vanora 2 · 0⤊ 0⤋
Some friends of mine have two savings accounts: one for general savings, and one for automotive expenses. If they need something done for the car, they have the money in the automotive account.
This is an example of using more than one bank account when you're saving for something special.
2006-07-20 18:08:23 · answer #6 · answered by drshorty 7 · 0⤊ 0⤋
the only reason to have more than one bank account, is if you have more than $100,000. one account can only hold that much safely, after that they don't care what happens, heck they might even help themselves!
2006-07-20 18:08:31 · answer #7 · answered by Phoenix 2 · 0⤊ 0⤋
i have enough trouble keeping up with one so I would think 3 would just be a lot more work!
2006-07-20 18:07:48 · answer #8 · answered by MelC 6 · 0⤊ 0⤋