How Many Bank Accounts Is Too Many?

Bank Accounts Wallet Card

How many bank accounts do you have? Do you prefer to keep it simple and just have a current and a savings account, or are you of the opinion that, like shoes or cookbooks, you can never have too many?

But just how many bank accounts is too many? And can numerous bank accounts actually harm your financial situation? Here we explore the pros and cons.

Pro: It helps keep your finances organised

If you keep all your money in one bank account, it can get a little tricky. For example, it’s easy for you to spend money you’ve ringfenced for savings – accidentally or not. Having two accounts also makes it easier to manage different sources of income that you prefer to keep separate. For instance, if you rent out a property, you can keep the incomings and outgoings related to that in a separate account.

Pro: It helps you maintain your financial independence in a relationship

There’s no right or wrong way when it comes to managing your money as a couple. Some people find it easier to pool their money in one account and manage everything from there. However, it also means you forgo any financial privacy. If you don’t want your partner knowing just how much you spend on internet shopping, or you want to surprise them with something for their birthday, a joint account can prove problematic. So, if you want to maintain some of your financial independence, you both might want to keep a separate account, paying enough of your salary each month into a joint account to cover the bills. And keep your guilty shopping habits to yourself.

Con: Having lots of bank accounts opens you up to the possibility of fraud

The more bank accounts you have, the harder it is to keep track of them, and any suspicious activity. Ensure that you regularly check your bank accounts to avoid this. Apps like Yolt allow you to load all your accounts, making it quick and easy to check your balances and any recent transactions. And if you do have any accounts that you haven’t used for a long time, now is the time to close them.

Pro: It helps you take advantage of the best interest rates

Another benefit of keeping your savings in different accounts is that some banks only pay interest up to a certain amount, say, the first $5,000, so again it makes sense to spread your savings over a few accounts.

Con: It can affect your credit score

There’s a caveat here: only if you open lots of accounts in a short space of time. Most financial institutions subject you to a credit check when you open an account with them and if you open a few at once, it may look like you are desperate for credit and affect your score. Always allow a few months for your credit score to recover in between opening new accounts.

If you need to improve your credit score, there are benefits to borrowing money, whether it’s an overdraft on your current account or a loan. If you show lenders that you can manage your debt responsibly and pay it off on time, it can increase your credit rating.

Pro: It allows you to take advantage of all the great offers on accounts

Some bank accounts give you cashback on purchases, others a high rate of interest on certain balances, and others may give you an incentive to open an account. Having multiple bank accounts allows you to take advantage of these offers.


So, when it comes to bank accounts, it’s entirely up to you how many you have. There’s no penalty for holding multiple accounts and in lots of ways it can work to your advantage. However, remember the more accounts you have, the more time you have to put into managing them.

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Paul Tomaszewski is a science & tech writer as well as a programmer and entrepreneur. He is the founder and editor-in-chief of CosmoBC. He has a degree in computer science from John Abbott College, a bachelor's degree in technology from the Memorial University of Newfoundland, and completed some business and economics classes at Concordia University in Montreal. While in college he was the vice-president of the Astronomy Club. In his spare time he is an amateur astronomer and enjoys reading or watching science-fiction. You can follow him on LinkedIn and Twitter.

One Comment

  • Akash Patwal

    Today security has become a prime concern for almost all of the institutions apart from banking institutions as well. A breach in security and loss of personal data of the users is considered to be extremely detrimental to the reputation of a company.
    There are jobs being posted online by companies such as JobVacancyResult etc for security of the networks of the company. This is going to be bigger than anyone has imagined.

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