Is it bad to have more than one or two bank accounts? I don't even know what inspired this question to be honest. But I was just thinking about how I personally have 5 accounts with 5 different banks. Then in addition to that I have a Roth IRA with Schwab, and one with Fidelity, and another account with Scottrade for my discretionary fund. Then lastly I have my 401(k) So all totaled that is 9 different accounts. Is that too much? I have no credit cards, no debt or anything, just 9 different accounts, with 9 different institutions. For some reason that just seems a little excessive. Or maybe it isn't. Whatever, any thoughts?
2007-08-23 15:48:17 · 4 answers · asked by ricky ross 2 in Business & Finance ➔ Personal Finance
If your different accounts have a different purpose and you are not paying fees, then it might make sense. However you can probably at least consolidate the accounts to one or two banks.
2007-08-23 16:01:46 · answer #1 · answered by VATreasures 6 · 0⤊ 0⤋
Keep your accounts to a minimum. It just makes tracking a whole lot easier.
Schwab and Fidelity are virtually the same. There's nothing "special" about Scottrade.
One checking account & one or two banks for savings. Anything over this is to much paper.
2007-08-23 16:11:42 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Unless you are slinging billions, you have too much unnecessary tracking to do. Consolidate that stuff into one or two national banks with local branches. In the process, take advantage of decent CD rates.
A single national bank can handle all of your varied accounts, plus, you may qualify for a higher customer status and significant offers not afforded to customers who have, say, less than $250,000 in holdings. It will benefit you to have a good, long term relationship with a single large bank.
If you keep it the way it is, make sure that your assets pass easily and with minimal tax consequence to your survivor in the event of your death.
2007-08-23 17:36:52 · answer #3 · answered by Starte Christ 4 · 0⤊ 0⤋
If you are paying any fees, you may want to cut down. Many people have accounts like this.
The FDCI insures each depositor for $100K, so people who have more often spread it among different banks,
Some poeple have other authorised users on some accounts, and want to limit the amounts in those accounts.
Others have accounts in various legal entitiy names.
Lots of reasons.
KEep in mind - if you die, someone will have to find all those accounts and sort them out. Could be messy.
2007-08-23 15:56:19 · answer #4 · answered by Anonymous · 2⤊ 0⤋