How many bank accounts do I really need?
It is often common that for each new financial goal, a new account is opened, often even in a different bank. Some have a checking account, an emergency fund account, a business account, a salary account, child education savings, one for achieving short-term goals, and the long list of accounts still seems endless.
At first, this may seem advantageous in terms of organization, but is the practice of having multiple positive accounts? When does it become detrimental to finances? Check out some Panurge tips to set the optimal number of accounts and answer those questions yourself.
Moderation is key.
Excess in all areas of life is harmful. This also applies to the number of accounts. Be careful not to get carried away by the advertisements and “benefits” of financial institutions. Do not forget that having an account is not for free! When added together, administrative fees and bank charges can end up posing serious damage to your financial life. Also, controlling a single account is a complex activity that demands organization and discipline, what about managing multiple accounts at the same time?
Do you really need many accounts?
One of the most important steps in defining the number of accounts to open or maintain is to wonder if so many accounts are needed. Possibly during your reflection you will realize that there are accounts that you barely move and have really only served to generate expenses.
You need to evaluate which accounts are best for your reality. That means you must raise the utility and the advantages of each. Search for rate policy, analyze aggregate benefits, frequency and volume of transactions, incentives and account negatives. Do this, keep it useful and advantageous. Which brings us to the next tip.
Do not have more than one account for the same purpose
Of course, the manager will try to convince you not to close the account which, after reflection on the subject, you deem unnecessary, but you must remain firm in order to decrease the amount of bills and reduce your expenses.
The savings account, for example, is a safe and profitable investment for those who want to achieve specific goals, but it is not worth opening several savings for the same purpose. Although there are no administrative fees for this type of account, according to experts, applying savings in two savings accounts reduces purchasing power by half, and hinders financial control.
Do you have a reliable bank?
Do not venture into searching for different financial institutions if you are satisfied with your current bank. Most institutions have different rates and services, and for this reason you should open accounts in banks that best suit your profile, whether it is convenience, trust, service or ease of use. If you find a good bank, you prefer to focus your accounts on it, also because there are incentives for old customers with a lot of financial movement.
Now that you have these tips, try to follow them: Define the number of accounts you need sensibly and responsibly, assessing your current needs and analyzing the specifics of each account.
What do you think about this? If you still have questions or even other tips for those who are experiencing this situation, please share them with us in the comments!