3 Ways to Know if You Should Open Another Bank Account

I've opened and closed two bank accounts in the last two months. I can't seem to get what I need, and boy, is it frustrating. Sometimes, I want to give up and just stick to what I already have. And maybe I should -- but probably not. More on that later.

There's more to bank accounts than savings accounts. You've got checking accounts, money market accounts, and certificates of deposit (CDs). They've each got their perks, and some will pay you for plopping money into an account and leaving it there.

But opening more than one account can be a drag. They take time and effort to manage. How do you know if you should open another account? It's a valid question. Let's break it down.

1. Your bank account pays too little interest

Interest rates matter. According to research from The Ascent, about 9 out of 10 Americans care a lot about how much money they get paid by their bank. Right now, average rates are higher than they've been in years. Here are good rates for the most popular types of accounts:

• Savings: The best high-yield savings accounts offer interest rates above 4%.
• CDs: The best CD rates offer 4% to 5% returns on investments.
• Money market: The best money market accounts offer up to 5% annual returns.

Is a top-tier interest rate important to you? If so, check out the above accounts to make as much as $5 for every $100 invested. Online banks typically offer the highest rates. You can open an account by filling out a new account application on the bank's website.

2. Your bank account fails to meet your needs

Your bank account should meet your needs. Some folks want mobile access. Others don't care about that -- they just want somewhere super safe to store their money. Not sure what to look for? Start with the following considerations:

• Is your bank secure? The most secure banks are FDIC insured.
• Is the customer service high-quality? Google customer service reviews.
• Does your bank offer online or mobile access? Many banks provide online access.

If your bank account doesn't meet your needs, it may be time to open another account. You can open a new account at the same bank or switch banks entirely.

You can close your old account to keep things simple, or you can keep both to meet different needs. For example, you may want to open both a checking account for short-term expenses and a savings account for your permanent emergency fund.

3. Your bank account becomes unmanageable

If you're getting mired in customer service, that's a red flag. If it happens more than once, you may want to consider switching to another bank. I've struggled to transfer funds into multiple freshly opened savings accounts. I thought the struggle was mandatory.

I was wrong. I could've skipped the hassle entirely by investing in a savings account offered by a company I already do business with. It made my unmanageable funds manageable. I'm relieved I didn't settle for less.

It shouldn't be hard to move money around. If you find yourself struggling to manage your account, do yourself a favor and examine better alternatives. They exist.

MORE: The Ascent's 2023 Bank and Bank Accounts Awards

When you should not open another bank account

Banking should be simple. If you struggle to manage your accounts right now, opening a new one will only make things harder for you. At best, your stress goes up. At worst, you lose track of your finances and end up paying for what should be profitable.

Do not open a bank account if it overcomplicates your personal finances. But if you do open a new account, consider downloading a budgeting app. These track your money across all bank accounts -- some do it automatically. It makes managing multiple accounts easier.

Bottom line: There are three ways to know if you should open another bank account: your interest payments are too low, your account fails to meet your needs, or your account becomes too hard to manage. Keep banking simple and affordable to make the most of your funds.