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Having Two Banking Accounts: Is It Worth It?
Having a banking account is actually a great way in order to better manage your savings and make payments online and in the physical stores. In some countries like the USA, even coffee is often paid with credit and debit cards, while in other ones electronic cards are often used more for bigger transactions, especially because of banks fees. Many people choose a bank just in order to keep money for the everyday living, while other ones also invest liquidity in funds, stocks and other financial tools. There are also people who just think about if being customer of a single bank is a good idea or if it is better to park money in two banks. There are pros and cons in both solutions.
Being customer of two banks may actually result in having benefits from different conditions: for example the first bank may be better when talking about account fees for operations like money transfers, while the second bank may be cheaper when talking about fees for investment tools. Being customer of both bank may result in having benefits in every situation.
Parking money in two different banks may protect you against these risks:
- Bail-in: if your banks fails and emergency funds made in order to save banks’ customers are not enough for you (maybe because you have too much money on your account or because funds cannot refund all customers, especially when talking about big banks) having money parked in different banks may be a good practice. This actually may not be relevent for people who are actually customers of big international banks like Citi or ING Groep: failing of institutions like these basically means worldwide economy’s failing.
- Payment problems: sometimes it may happen there are problems with your bank’s cards or with the shop’s POS (even if these are very rare situations compared to the past). Anyway having two cards of two different banks (even better if belonging to two different circuits) may be a good practice even for the most worried guy.
More Costs Unless...
The real con of having two banking accounts is related to the fact you are paying account maintaining fees twice: if you spend $30 yearly in order to keep your account, adding a second one may become expensive for you. The problem is solved if you do not care about having physical support and you choose to rely on online banks: in this case, as costs are really low and there are usually no fees, having two accounts may not represent a cost for you, so that you can do it with no problems! It may still be uncomfortable whenever it comes to memorize more than one PIN (having two different debit cards of different banks), even if this should not be a reason not to keep two banking accounts if you feel you need them.
© 2017 Alessio Ganci