Three Ways Multiple Banking Accounts Can Help You
There is a somewhat common misconception that multiple bank accounts are only for people with a lot of money. This couldn't be any further from the truth. Having more than one account can actually come in handy for a number of different reasons. If you only have one account, here are just a handful of the reasons you should consider opening up an additional account.
Create Financial Relationships
When it comes to securing a loan for a business, home, or vehicle, your financial standing and your credit are important, but they aren't everything. The relationship you have with the financial institution at which you are applying is also important. If you have had one account at the same bank forever, consider adding an additional account at another institution.
Doing so allows you to develop a relationship with another potential lender. When you need to apply for credit, even if the first bank denies your application, you might be able to rely on your reputation with the second lender to secure the credit you need.
Develop Better Saving Habits
If you're like most people, you save money with multiple goals in mind. For example, you might be saving for a down payment on a new vehicle, a new laptop, and a vacation next year all at the same time. When you pool all of your money together, it can be hard, if not impossible, to stay on target. Having more than one account allows you to keep your savings goals separate.
This makes it easier to stay on target and helps you avoid spending money that is intended for one goal on something else.
Avoid Unnecessary Banking Fees
Some basic-level accounts have restrictions when it comes to the number of transactions you can perform each month. This is especially the case when it comes to deposits. For instance, an account might charge a per-transaction fee for more than six deposits in a single month.
For someone with multiple income streams, such as a self-employed person, it's highly likely that they will need to make quite a few deposits each month. However, with multiple accounts, you can spread your deposits out over each account. This can help keep you from going over the limit and help you avoid fees.
It doesn't matter how much money you have; having more than one account can help you keep your finances organized and under control. Contact an organization such as Rio Grande Credit Union to open another checking account.