Here's Why I Have 4 Bank Accounts. Are Multiple Accounts Right for You?

The first type of financial account you ever opened was likely a checking account or a savings account with a bank or credit union. These types of accounts are sort of personal finance 101. A checking account is where you receive the money you're paid by your employer, and you can turn around and pay bills from it. A savings account is a place to keep money for expenses that you'll need sooner rather than later, as well as a good home for your emergency fund.

With this in mind, why would you ever need more than one of each? Having multiple bank accounts can be a great way to manage money for different uses and goals. Right now, I have four bank accounts -- a linked checking and savings, each set with a different bank. Let's take a look at why I've complicated my finances this way, and why you might want to do the same.

Two checking accounts

My first checking account is one I opened with a big national bank after I moved halfway across the country to start my first job after graduate school. I opted for this bank specifically because it has branches everywhere -- and this turned out to be a smart move, as I ended up living in multiple states. Thanks to working for an employer that was a bigger name in the city I opened it in, my checking account came to me without bank fees of any kind, so it's been worth hanging onto all this time. I have most of my income directly deposited into this account and pay most of my bills out of it.

My other checking account is one I opened so I could have easier access to my money in a high-yield savings account at an online-only bank. That bank doesn't offer an ATM or debit card for savings accounts, so if I wanted to pull cash directly out at an ATM, I needed a linked checking account. It also comes in handy for making payments with money from my savings, such as for travel bookings I've saved up for or my quarterly freelance tax bills.

Two savings accounts

While my checking account with a big traditional bank is excellent, I cannot say the same for the savings account I have linked to it. It earns a measly 0.01% APY, and charges me a maintenance fee if the balance drops below $300. Last year, I lost $50 in fees to that account (which was absolutely my fault, as I was worrying about life and only sort of noticed the loss of $5 a month for 10 months). But I keep it open (and minimally funded) as overdraft protection for the checking account.

My savings account at the online bank, on the other hand, holds my hopes and dreams -- and my quarterly tax payments. As of this writing, that account is earning an APY of 4.25%, and I anxiously look forward to getting my monthly interest payment, because hey, free money! I'm actively saving to buy a home next year, and the money for that and smaller goals lives (and grows) there.

How many bank accounts do you need?

My cash management system might sound a little complicated, but at this point, I've got it down to a science. If you've only got one or two bank accounts, should you open additional ones? Well, consider your own finances to decide.

If you don't already have a high-yield savings account, I'd argue that you absolutely need one. Even if you can only manage to save a little, taking advantage of the higher APYs available right now can help you grow your money. According to the FDIC, the average APY on a savings account as of July 17 was 0.42%. Meanwhile, my high-yield savings account is paying more than 10 times that. Other online-only banks are paying even more. Savings account APYs are variable, so these high rates won't last forever -- so it's worth taking advantage while you can.

What about another checking account? I have a friend who actually has two checking accounts at the same bank: one for bills and one for fun spending. This system is working out really well for her, as she's no longer accidentally spending "car money on cheeseburgers." You could also opt to open a checking account alongside your new high-yield savings, as it'll give you easier access to your money -- you can transfer from savings to checking, and then withdraw money or make purchases.

Having four bank accounts is working out well for me. Why not think outside the box and consider your own needs? Having an extra checking or savings account (or both!) could make it easier to accomplish your goals and manage your personal finances.