Here are the pros and cons of having two bank accounts:

Your partner wants to open a new bank account at a different bank, but you like your old bank account best. Should I close my existing account? Would you like to leave it open? It’s questions like these that make banking geeks like us shiver with excitement. Simply put, each option has pros and cons.

Keeping two bank accounts open gives you more flexibility and security. But it also makes tracking your money more complicated. And if your bank charges a fee, you may end up paying double. Read on to learn more about the pros and cons of owning two bank accounts.

Pros: Flexibility

Keeping two accounts open means you can use one when the other breaks down. Sometimes banks have problems. For unknown reasons they close your account. Next thing you know, you won’t be able to access your money for weeks!

However, having a backup account gives you more flexibility.

Opening two checking accounts can increase your maximum ATM withdrawal amount. Banks set withdrawal limits independently of each other. Let’s say one bank limits you to $100 per day, and another bank limits you to $200 per day. You can drive to two ATMs and withdraw a total of $300 each day.

Finally, you can increase your income by transferring money to an account with a better interest rate. The higher the rate, the more profit you can make.

Pro: Security

The FDIC insures bank accounts up to $250,000 per bank. The bank is separately insured. You can protect more of your savings by spreading your savings across multiple checking accounts. If your bank goes bankrupt, the FDIC will give you back up to your savings.

Having two savings accounts at separate FDIC-insured banks can insure deposits worth $500,000. The more bank accounts you open at separate FDIC-insured banks, the more money the FDIC will protect. Having two bank accounts is a smart way to keep your money safe.

Pros: Organization

You can keep your money organized by opening two savings accounts. You can designate one account as your emergency fund and another as your vacation fund. It’s extra work, but it may be worth the effort if it gives you peace of mind.

tip: Using a bank that offers bucketing can help you stay organized and keep your bank account to a minimum. Bucketing allows you to divide your money into designated categories without having to open multiple accounts at separate banks.

Cons: Hassle

Keeping two bank accounts open can be a hassle. Owning a checking and savings account go together like peanut butter and jelly. They meet a variety of requirements. But do you have two checking accounts? This is where things can get complicated.

Receive direct deposit. If you share finances with a partner, you both need to decide whether to split your savings across multiple accounts or use one as your primary account. Transfers between accounts may take several days for your deposit to clear. Simply put, owning two bank accounts is a hassle.

Cons: Fees

If you’re charged maintenance fees on more than one bank account, you’ll end up paying more than if you only use one account. This is the simplest con on this list. You can also avoid this by choosing the best savings account. Most do not charge maintenance fees.

Other fees are also important. Some savings accounts impose account minimums, and you may be charged a fee if you leave too little money in the account. Some checking accounts charge overdraft and insufficient funds fees.

The more bank accounts you have, the more fees you have to keep track of. Good news: The best checking accounts allow you to keep overdraft fees to a minimum or skip them altogether.

Should I have two bank accounts?

Yes, if you link your checking and savings accounts. Otherwise it’s more complicated. If you want greater flexibility and security, you can open two accounts of the same type. To avoid hassle and fees, we recommend using one account for each type.

If you open a second bank account and change your mind, be careful not to close it too quickly. Bank accounts sometimes charge an early account closure fee of $5 to $50 if you close your account within 90 days of opening it. Keep your account open a little longer to avoid paying fees.

There are benefits to owning more than one bank account of the same type. This won’t harm your credit score and is common practice. Weigh the pros and cons to decide if having more than one account is right for you.

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