I have a checking account and a savings account at one bank and a separate checking account at a separate bank.
I’m thinking of adding a second savings account at the second bank, both for convenience and to diversify and protect my money.
Does it make sense to do that or should I keep building up the first savings account instead?
Should I open a second savings account?
byu/Boneandwiredog inpersonalfinance
Posted by Boneandwiredog
5 Comments
Yeah that’s pretty normal honestly. Having a second savings at another bank can be nice for separation (emergency fund vs. other goals) and it also spreads your risk a bit, so if it helps you organize your money better I’d do it.
Yes, it makes sense. A lot of people do that.
I have a checking/savings account with Cap One. They’re mostly online-only bank, they have branches but not anywhere near me.
And then I have a checking/savings with a local small bank near me with only three branches.
Even though most of my money is with Cap One, in case something happens, my account gets hacked, my money gets stolen, Cap One decides to close my accounts, etc., well, I still have my local bank that I could walk to to conduct business.
It’s good to have about 3 saving accounts. In case one down due to technical issue, helps.
What’s the purpose of having multiple separate savings accounts? What are your concerns about keeping your funds at one bank? Outside of having a HYSA holding your emergency fund, I don’t see any value in having multiple baks.
I have multiple bank accounts and savings because I use it mostly for budgeting. Each account is for something in particular, like property taxes.