Can You Have Checking Accounts at Multiple Banks?

The smart way to handle multiple accounts and banks

Man writing a check on one of his checking accounts.

Kathleen Finlay / Getty Images

You can have checking accounts at several banks at once, but there are pros and cons to doing so. Most people have accounts at only one bank, because it simplifies the banking process. It is easier to have the majority of your accounts in one place so that your transfers and payments go through more quickly.

Banks count on customer loyalty, which is why they recruit so heavily on college campuses. They know that once you open your first bank account with them, you are much more likely to stay there, despite any fees. However, you should do a banking checkup once a year to make sure your needs are still being met.

Reasons to Have Multiple Accounts

It is possible to have a checking account at more than one bank, and you may have specific reasons why you want to do that. For example, you may choose to keep your personal checking account open when you open a joint account with your spouse at a different bank.

You may have one checking account at a separate bank to pay your collection bills from so that they do not drain your checking account of more money than you authorized. You may have a different account for your small business or freelancing work that you do under your name. You may also have a savings account at an online-only bank in order to earn higher interest rates. You might keep more than one bank in order to pay less for specific services, such as an international wire transfer or an exchange rate conversion, which vary from bank to bank and depend on the country you have the most intimate relationship with. Each of these is a legitimate reason to have more than one account.

Managing Multiple Accounts Carefully

It is important that you manage each of your accounts carefully so you do not overdraw one account accidentally and run up overdraft charges. Keep your checkbooks in separate places, and choose distinct checks for each account. If you are allowed to choose the styles of your debit cards, make sure that they look different so you do not grab the wrong one when you are making a payment. You should balance your checkbook each month and keep a running total of your transactions so you do not overdraw. Checking your transaction online every few days will help you catch a mistake early so you can correct it before it becomes serious.


If you are transferring money in between accounts, you can do that online if both banks have that option available, or you can do it by making a deposit with a check from the other bank. You should be sure to wait three to five business days to make sure the check has cleared before using the money. If you want to speed up the transaction, you can use cash.

Choose Your Banks Carefully

When you choose a new bank, you may look for specific services they offer that your current bank does not. Some banks may offer a lower interest rate on car loans if you have a checking account with them and will set up an automatic payment for the loan. This is a good reason to open a new account. Over time, you may find that you like the new bank better and want to transfer all of your accounts to it, or want to build banking history and credit with both banks if you think you'll need financing in the future. It is not difficult to close your old account if you decided to do that. Be sure that you transfer all of your payments and direct deposits to your new account before you close your old account.

Keep Business Accounts Separate

A separate bank account for a business is a good idea because it will help you keep your business finances separate from your personal finances. You may find a smaller local bank offers better services for your business. It is important to keep your business account very separate from your personal account, and you should write yourself a paycheck each month, instead of dipping into your business account to pick up small items you may need.

Take Advantage of Offers by Different Banks

It is more common to have online savings account at a bank that is separate from the bank you have your checking account with. Online banks often offer higher interest rates on savings accounts, and it can be worth the extra money you earn. Be sure that the online bank is insured by the FDIC and that it will guarantee the money you keep there.

Each bank has its own policies surrounding their checking accounts, and you should understand each policy for the different accounts you have. That can help you save money in fees, as you maintain the minimum required balance, and avoid other monthly service fees the bank may charge. Even different accounts at the same bank may have different service fees and rules.

Frequently Asked Questions (FAQs)

How many bank accounts should you have?

Many people have two bank accounts: a checking account and a savings account. Checking accounts are for your daily spending. Savings accounts pay interest, and they're good places to stash funds that you don't need right away but you want to be able to access easily. You may have both of those accounts at the same bank or different banks.

How old do you have to be to have a bank account?

Most banks don't allow people under the age of 18 to open a bank account on their own. If you're under 18, you can open an account with an adult. These accounts can be joint accounts or custodial accounts. Minors can't manage custodial accounts, but they can manage and use joint accounts. Once you turn 18, you may be able to take over the account or open a new one on your own.

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The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
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