4 Reasons Having Multiple Bank Accounts Is Worth It
KEY POINTS
- Online-only and brick-and-mortar banks both have unique perks and drawbacks, and it's worth using both.
- You can get an excellent APY on your savings right now if you move it to an online bank.
- If you have a lot of cash savings, spreading it between banks can ensure all of it is protected by FDIC insurance.
Opening a new bank account has never been easier. You can set up a bank account online, from the comfort of your own home -- without even putting on shoes! But I understand the inertia of adult life, and how easy it is to just leave your money with the bank you've always used. And if that bank comes with benefits you don't want to give up, that's totally understandable.
I have accounts with two different banks these days, and one of them is a brick-and-mortar bank that I've used in some form or fashion for nearly two decades. I like my checking account there, as well as the bank's credit cards. Despite my generally favorable opinion of my long-time bank, I also opened accounts with an online-only bank last year.
Read on for a few reasons why it's worth the time and effort of opening and maintaining multiple accounts across multiple banks.
1. Taking advantage of higher yields on savings
This is hands-down the best reason to explore your banking options right now. We've seen an unprecedented string of Federal Reserve interest rate hikes as the federal government attempts to deal with inflation. Thankfully, as of the last Consumer Price Index Summary report, we're sitting at 3.2% inflation. This is still above the 2% inflation target the Federal Reserve aims for, but it's miles better than June 2022's 9.1%.
Our Picks for the Best High-Yield Savings Accounts of 2025
Product | APY | Min. to Earn | |
![]() American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of February 15, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of February 15, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
![]() Capital One 360 Performance Savings
Member FDIC.
APY
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
![]() Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.30%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.30%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
Those interest rate hikes have meant that banks and lenders of all kinds are now charging higher consumer rates on all types of borrowed money, be that credit cards, personal loans, or beyond. But there's a silver lining for folks with money in the bank: We're seeing much higher annual percentage yields (APYs) on the best savings accounts, and if you have a significant sum of money saved, you can earn real money on it right now.
So if you've got cash languishing in a savings account paying around 0.46% (the average rate on all savings accounts, according to the FDIC), definitely look into a high-yield account while rates are still up. You can find rates 10 times that high -- or even higher. Don't forget to investigate CDs and money market accounts, too, as rates are up on these as well.
2. Brick-and-mortar banks give easier cash access
One of the few drawbacks of online-only banks is that direct access to cash can be very difficult or impossible without doing some tap dancing. And by that, I mean you'll need to transfer your money to a brick-and-mortar bank if you're hoping to remove a large sum of it. My online-only bank has a network of ATMs, and thankfully one of the machines linked to it is located in a drugstore in my neighborhood. But ATMs limit cash withdrawals, often to just a few hundred dollars a day.
If I needed a large amount of cash, I'd need to wait a few days for a transfer to my brick-and-mortar bank, then physically visit during business hours to make a withdrawal. So spreading out your savings between online and traditional banks can be a good idea if you want the best of both worlds -- a higher APY and cash access when you need it.
3. Expanded FDIC insurance
While this is unlikely to be a problem for a lot of people, if you have a lot of cash in the bank and your bank fails, you could lose money. Specifically, most FDIC-insured banks protect up to $250,000 of your cash (although some have expanded protection these days).
If you have more than that saved, spreading it out between a few banks is a great way to ensure all of it is protected. Want to double-check that your banks are insured? Hop over to the FDIC's BankFind Suite tool to see.
4. Saving for different goals can be easier -- and even more fun
Finally, having multiple accounts with different banks gives you the chance to save money for different goals without "crossing the streams," as it were. You probably don't want to accidentally spend money from your emergency fund on the new car tires you've been saving for, for example.
My online-only bank has a neat feature that lets me create up to 30 sub-savings accounts within my main account. I can name them, set goals and timelines for saving, and when I reach one, I even get a congratulatory email from the bank. Saving money can be hard, especially when the future looks hazy and you want to make a purchase in the here and now. This feature helps, and you might have to open a new bank account to get it. It's worth it, though.
Are you ready to expand your banking horizons in 2024? Moving some cash to a new bank account with a different bank can be a great move, for all the reasons above.
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