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Can You Have Two Checking Accounts at the Same Bank?

Published by
Randy Erickson
Edited by
Sammi Toner
Fact checked by
Andrew Latham

  • Table of Contents

    • Article Summary:

    Yes, it is possible to have two different checking accounts with the same bank. However, all of the money you leave with the bank will count towards the $250,000 FDIC insurance limit. Instead of asking how many checking accounts can you have, you might be better off asking how many checking accounts you need or if another type of account would be more helpful.

    There are a variety of reasons why someone may want to have multiple checking accounts with the same bank. They may wish to separate specific expenses, capitalize on introductory offers, or organize their income and expenses for a new business. However, there are also a few not-so-uncommon problems that can arise if you don’t take an active role in managing your personal finances.

    If you find yourself asking how many bank accounts is too many bank accounts, there is no set answer. However, a good rule of thumb is don’t have more accounts than you can monitor and manage effectively.

    Reasons to use multiple checking accounts

    One of the most common reasons someone might be interested in having multiple checking accounts is because they are trying to better organize their own finances. But there are a few other less common, but equally valid, reasons using multiple bank accounts might be the right call for you.

    Pro Tip

    If you are just trying to be more proactive about saving money, a new savings account might better suit your needs. Take a look at the account options below to get started.

    Household finances or specific bills

    If you recently moved in with your significant other or have another type of long-term roommate situation, you may look into opening a joint checking account in addition to your personal checking account. Not only will this make paying the bills more transparent, but it can also help you avoid spending money for bills on personal expenses.

    If you prefer to keep large expenses separate, you can open a second checking account to pay a few larger bills regularly. This could be your insurance payments, monthly mortgage bills, or even your utility payments that you don’t want to accidentally spend elsewhere.

    Using the tool below, you can compare different joint checking accounts to find the one best suited to your needs.

    Pro Tip

    If you’re considering a joint checking account, be sure to name a beneficiary if there will be multiple names on the account. In the event of an untimely passing, the other individual named on the account is generally allowed to withdraw whatever funds remain if no beneficiary is named.

    You may want a checking account for your small business

    If you are in the early stages of starting a small business, you may want to have a dedicated checking account to easily track all of your spending related to the business.

    Depending on the amount of income you take in, you may want to open a business checking account. Although doing so might require a bit of documentation to verify the legal existence of your business, keeping separate accounts could help you during tax time.

    Relationship banking

    Most major banks and even many credit unions now often prioritize customers who utilize multiple aspects of their businesses through what is generally known as relationship banking.

    Relationship banking refers to the desire many financial institutions have that account holders will open further accounts or use additional services offered. These institutions would love to become a one-stop-shop for all of your financial needs. Many of the services offered are similar across most financial institutions so many banks will reward customers who have multiple accounts with them in a variety of ways.

    Take advantage of different account offers

    Some financial institutions will attempt to draw in new customers with incentive deals, such as no monthly fees or a signup bonus. Depending on the minimum balance requirements, you may find it advantageous to open smaller accounts and collect on the introductory offers.

    You may also find that some financial institutions have more appealing benefits for specific transactions. For instance, if you want to send a wire transfer but your current bank tacks on an outrageous additional fee, opening a second checking account may allow you to send a wire transfer with little or no extra fees. Or you could open a different checking account for just depositing checks to avoid those fees, which the below accounts offer.

    Pros and cons of multiple checking accounts

    Unfortunately, opening more than one checking account isn’t always a good idea. Before doing so, consider the benefits and risks you open yourself up to.

    WEIGH THE RISKS AND BENEFITS

    Here is a list of the benefits and drawbacks to consider.

    Pros
    • Multiple accounts may help you keep track of your personal finances in a more effective way.
    • If you plan to hold over $250,000 in your bank accounts, multiple accounts at different banks may be necessary to guarantee your funds are FDIC insured.
    • Keeping a business checking account separate from your personal account will help ensure that your personal spending is not mistaken for business expenses.
    • Many banks offer new account bonuses. (However, these bonuses will often require that you maintain a minimum balance or make direct deposits into the bank account.)
    • Having multiple checking accounts with the same bank can make transferring money between accounts easier.
    Cons
    • Tracking deposits and transfers across multiple accounts will require a more concentrated effort.
    • Regardless of the number of checking accounts you have, you’ll need to meet any minimum balance requirements listed.
    • Failure to actively monitor the accounts or making a large payment from the wrong account may result in overdraft fees.
    • Multiple accounts may mean multiple monthly service fees. (In some cases, these fees may be waived.)

    Pro Tip

    If you plan on setting aside money to save up for a large expense or monthly payment, you may want to consider a money market account rather than a checking account.

    Money market accounts typically offer an annual percentage yield that will be competitive with decent savings accounts. This can help you earn some additional cash just by holding your money in an account.

    Online banking vs. online-only banks

    To remain competitive, most major banks and many credit unions have a plethora of online banking options. Banks such as Wells Fargo and Chase even allow you to open a variety of accounts completely online. They also allow for convenient access to those accounts through the web or smartphone applications.

    However, there are a few things that online banks without a physical presence do generally excel at. Online-only banks often have the lowest fees and highest interest rates, and many also offer new checking account bonuses just like traditional institutions. Online-only banks have a variety of account options and often offer more than just a basic checking account. However, before opening an online-only account, make sure what they offer will meet your needs.

    Does having multiple checking accounts hurt your credit?

    Multiple checking accounts won’t have a direct impact on your credit score, but lenders do often consider account balances.

    For example, when applying for a mortgage, lenders will typically want to see several months of bank statements for any accounts with readily available funds. Overdraft fees also typically won’t have an impact on your credit score regardless of how many accounts you have as long as you resolve them in a timely manner.

    Key Takeaways

    • Having more than one account may help you keep track of your finances and could even help save money. On the other hand, you will need to actively monitor and manage the accounts for that to be the case.
    • If you are concerned with the $250,000 Federal Deposit Insurance Corporation coverage limit, consider opening an account with more than one bank. The FDIC limit is attached to the institution, not your individual accounts.
    • There is no official number of bank accounts that is too many. What really matters most is that you can effectively manage and monitor all accounts in your name.
    • Most banks and credit unions will have some type of benefit or bonus if you have more than one account with them. However, how many accounts you will actually benefit from will depend on your personal finance needs.
    View Article Sources
    1. I have a joint account with someone who died. What happens now? — Consumer Financial Protection Bureau
    2. Checking Accounts: Understanding Your Rights — Office of the Comptroller of the Currency
    3. Which Banks Offer Second Chance Checking Accounts? — SuperMoney
    4. Checking and Savings Accounts: How To Make Them Work Together — SuperMoney
    5. How to Open a Checking Account — SuperMoney
    6. What Are The Benefits Of A Checking Account? — SuperMoney
    7. Opening a Joint Account: The Definitive Guide — SuperMoney
    8. Best Joint Checking Accounts | June 2022 — SuperMoney
    9. Best Checking Accounts | June 2022 — SuperMoney
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