How Many Bank Accounts Should I Have?

Conventional wisdom holds that you should have at least two bank accounts — one for checking and one for savings.

However, some people might be A-OK with just a single “spend/save” account that covers both their transactions and savings. Others may prefer half a dozen (or more!) accounts to optimally manage their finances.

The way you relate to your money, as well as your marital and employment statuses, will ultimately inform the number of bank accounts you should open.

No Bank Accounts? Never a Good Idea

Not everyone wants a bank account, and 4.5% of U.S. households reported being entirely unbanked in a 2021 survey by the Federal Deposit Insurance Corporation.

Some commonly cited reasons for choosing not to bank:

• An inability to meet minimum balance requirements
• Unwillingness to pay account fees
• Mistrust in financial institutions

But stashing a pile of Benjamins under your sofa cushions exposes you to major risks, as it could be stolen, misplaced, or destroyed. 

If your cash reserves are currently limited or you’ve had bad experiences with big banks in the past, consider opening an account with a local credit union.

These not-for-profit institutions often offer accounts with no minimum balance and no monthly fees. Membership is usually available to any resident of the credit union’s service area.

Credit union deposits are insured up to $250,000 by the National Credit Union Administration — far more secure than holding all your money in physical currency.

READ MORE: Credit Union or Bank: What’s the Difference?

One Account: For Bare-Minimum Banking

Your banking needs fall into two broad categories: day-to-day transacting and saving.

Many people address those needs with two separate accounts — typically a checking account and a savings account. But they can potentially be satisfied in a streamlined money market account (MMA).

A good MMA has at least some of the functionality of a checking account and may support transactions like direct deposit, debits, and/or ATM withdrawals.

But it might also boast an annual percentage yield (APY) that’s competitive with the top high-yield savings accounts (HYSAs).

That said, using only one bank account may make it harder to keep from spending money you had intended to save.

Two Accounts: For Better Budgeting, More Features

Maintaining only one bank account might make sense if you have the self-restraint of a nun and come in well under budget every month.

But divvying up your dough between two accounts helps manage overspending, so you have cash for regular bills.

You could even choose separate financial institutions for those accounts, so you have an additional barrier between spending and saving.

Financial psychology aside, opening separate checking and savings accounts allows you to choose the best-in-class for both account categories.  

Let’s say you have $12,000 earmarked as an emergency fund in your MMA at 3.75% APY. If you transfer it to an HYSA at 4.75% APY, that extra 1% in APY will earn over $700 more during five years than it would have earned in the MMA.

Plus, if you move your bill-paying money into a top-ranked checking account, you can access a broader range of banking services than an MMA provides. 

READ MORE: Checking vs. Savings Accounts: What’s the Difference?

Three Accounts: For Small Business Owners

If you own a business, you should have at least one dedicated business banking account, in addition to your personal checking and savings accounts. Here's why:

• Legitimacy: Lenders may not take your business seriously if it doesn’t have a dedicated bank account, and that could be a strike against it when they evaluate your applications for business credit. 

• Clarity: A separate business account factors out your personal expenditures and unrelated income streams, creating a more focused view of your business’s cash flow, profitability, and tax-deductible expenses.

• Compliance: A separate bank account is legally required if your business is structured as an LLC or corporation.

Four Accounts: For Committed Couples

A study from Cornell University correlated joint bank accounts with “higher levels of relationship quality on numerous dimensions.”

However, maintaining separate, personal bank accounts gives you both financial autonomy.

The following arrangement is a happy medium for many couples:

• One joint checking account for shared expenses, like rent/mortgage payments, insurance, auto loans, groceries, etc.
• One joint savings account for emergencies and long-term shared financial goals
• Two HYSAs or MMAs — one for each partner — that can be used for personal expenses

READ MORE: How Should Married Couples Split Finances?

Pros and Cons of Multiple Bank Accounts

To invoke a tried-and-true cliche, sometimes less is more.

Opening separate accounts may seem like a good way to stay hyper-organized, but it can also open you up to some pitfalls.

Pros	Cons
Multiple accounts may help you budget more effectively.	Multiple accounts mean logging in and out of different platforms.
You can pick and choose a range of the best banking features.	Having one account simplifies reviewing your finances (unless you’re a small business owner).
For business owners, separate accounts simplify your finances come tax season (and may be legally required).	If you don't monitor an account, there may be fees for overdrafts or falling below minimum balance requirements.
Joint + personal bank accounts can help couples work toward shared financial goals while preserving some autonomy.

How To Manage Multiple Bank Accounts

Whether you ultimately decide to maintain two accounts or 20, a few best practices can keep your money safe. 

Diversify usernames and passwords

The more accounts you try to juggle, the more tempted you’ll likely be to reuse login credentials.

Don’t.

Repeating usernames and passwords jeopardizes your accounts’ security. If login information for one account is compromised, all your other accounts are at risk.

Check each statement regularly

Log in to each of your accounts and review your recent transactions at least once or twice a week. This decreases your risk of identity theft and increases your chances of spotting errors.

Regularly checking your balance also makes you less likely to overdraw.

Downsize when necessary

If you struggle to maintain minimum balances, accidentally overdraw more than once, or feel like you’re spending too much time logging in and out of apps, you might want to cut one account or more.

Keep in mind that there are also middle-ground solutions out there. For instance, some options, like the SoFi Checking and Savings Account, allow you to compartmentalize your money into different “vaults.” This gives you budgeting flexibility without forcing you to open an unwieldy number of accounts.

FAQs

TL;DR: How Many Bank Accounts Do You Need?

There's no magic number of accounts you need — it all comes down to what works for your situation.

Start with the basics: at least one checking and one savings account. Add a third if you own a business (legally required in many cases!). Couples might want four accounts total: two joint ones for shared expenses, plus individual accounts for personal spending.

The key is finding your sweet spot between organization and overwhelm. Multiple accounts can help you budget better and earn higher interest rates, but they also mean more passwords to remember and statements to check. If you're constantly overdrawing or forgetting about accounts, you may need to simplify.