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How many checking and savings accounts should I have?

When it comes to having multiple bank accounts, including multiple checking accounts and multiple savings accounts, there is no one-size-fits-all solution. The number of checking, savings, or other types of financial accounts you have will depend on your unique financial situation and your retirement goals.

Some people find it sufficient to have one or two accounts, such as a checking and savings account, while other people may have four or more accounts, including business accounts.
Everyone should have a retirement account, and it’s never too early or too late to start saving.
At Credit Union of Southern California (CU SoCal), we make opening a checking account easy!
Call 866.287.6225 today to schedule a no-obligation consultation and learn about our mortgages, home equity lines of credit, auto loans, personal loans, checking and savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all your banking needs.

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Is there a limit to how many accounts I can have?

Although there is no limit on the number of bank accounts you can have, fewer accounts are unquestionably easier to manage.  
Additionally, higher balance accounts typically earn more interest, which is another reason to not spread your money among too many accounts (unless there is a financial benefit to doing so).

Pros and Cons of having multiple bank accounts

Here are some of the pros and cons associated with having multiple bank accounts:


  • Budgeting may be easier if you maintain one account for personal checking, a business account, and several savings accounts (such as a regular savings account, a holiday savings account, and a Roth IRA account).
  • Specific savings goals can be targeted. Several savings accounts can help you achieve your goals, such as a traditional savings account, a Seasonal Saver account that pays a higher dividend than a regular savings account, and a Roth IRA account for retirement.
  • Keep business expenses separate. Business owners should always keep business funds separate from personal funds to help track profits and losses.
  • Married couples often maintain some separate accounts to avoid conflicts about spending.


  1. Account fees may be charged to maintain certain accounts.
  2. It’s time consuming to keep track of multiple accounts and the rules and requirements of each.
  3. You could lose out on interest by spreading your money amongst several accounts, rather than earning interest on a high balance in one account.

When does having multiple bank accounts make sense?

Although having many accounts could be a challenge to keep track of, here are some circumstances when it makes sense to open multiple bank accounts.
Better rates. If your income is sufficient, you can take advantage of higher interest rates on share certificates and CDs, and other types of interest-bearing accounts.
More rewards. All credit unions and banks offer rewards, in the form of dollars and/or points that are linked to spending. Common examples are rewards checking accounts and debit card rewards. Having more than one rewards account can help you earn cash-back and other perks.
ATM locations. If you frequently need an ATM, you may choose to open accounts at one financial institution to take advantage of convenient ATM locations and at another bank to take advantage of interest rates.
Business expenses. Business owners typically keep their business accounts separate from their personal accounts.
Separating finances. Married couples and partners often maintain some separate accounts, which lets each person spend as they wish.
Joint accounts. When it comes to sharing expenses, married couples and partners may maintain some separate accounts as well as joint accounts, which streamlines paying rent and other bills and makes saving for a house easier. Parents may have a joint account with their children.
Managing FDIC/NCUA insurance. Bank account deposits are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per account. Credit union deposits are protected with NCUA insurance up to $250,000 per account. If you have more than $250,000 in any one account, you may want to divide it into another account to take advantage of the insurance thresholds.
Saving for different goals. Different types of savings accounts can offer rewards or interest rates that can help you save more to meet each goal.

Types of bank accounts to consider

Here are some of the most popular types of accounts that consumers find helpful for managing their money and growing their wealth:
Checking accounts. Checking accounts are a type of “liquid” account that allow consumers to make deposits and withdrawals as needed. Rewards checking accounts offer a monthly dividend on average account balances, rewards points on debit card purchases, and other perks for account holders.
Savings accounts. Also called a “deposit account,” savings accounts typically pay interest on the monthly balance with tiered levels of interest, so the more you save the more interest you’ll earn.
Money market accounts. Money market accounts are similar to savings accounts; however, the earned interest rate tends to be higher and most financial institutions limit the number of withdrawals that can be made each month.
Share certificates. A share certificate is a type of savings account offered by credit unions. Share certificates are equivalent to certificates of deposit (CDs) that are offered by banks. The only difference between share certificates and CDs is the name.
Individual retirement accounts (IRA). An IRA is a retirement account that earns interest which becomes accessible to the account holder upon retirement. IRAs can be opened at traditional banks, at credit unions, and at investment companies. An IRA opened at a credit union is called an IRA share certificate.


Will having multiple bank accounts hurt my credit?

No, having multiple accounts will not affect your credit score. However, if you owe money to the bank for an overdrawn account, this negative balance would be reported to the credit bureaus and your credit score will decline.

Is there such a thing as having too many accounts?

This depends on your financial goals. If having several types of savings accounts helps you meet your goals (such as earning interest on several share certificates or CDs) then have many accounts makes sense.

What's the optimal number of bank accounts?

The optimal number of accounts is unique to each individual, couple or family, and can be determined by your age, income, and financial goals. Consider speaking with a tax professional or financial advisor to learn more about your optimal number of bank accounts.

Will closing a bank account hurt my credit score?

Generally, no, closing a bank account has no affect on the account holder's credit score. If you have overdrawn your account or owe any other service fees, you should not close a bank account before paying the amount owed. Failure to pay any money owed to the bank will be reported to the credit bureaus and your credit score will be damaged.

Why savvy consumers choose CU SoCal

For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.

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Credit Union of Southern California (CU SoCal) is a leading financial institution empowering those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County to reach their goals and build strong financial futures. CU SoCal provides access to convenient money management services and offers competitive rates and flexible terms on auto loans, mortgages, and VISA credit cards—turning wishing and waiting into achieving and doing.


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