The Benefits of Multiple Checking Accounts

Learn more about opening a second checking account and how it can help you budget

You may have heard of friends or family opening multiple checking accounts and are wondering if it's a good idea for you. A second checking account can provide you with enhanced control over your spending by allowing you to dedicate specific accounts for defined expenses. You can reap the benefits of opening a second checking account if you take the time to define the purpose of each account and stay dedicated to your plan.

Budgeting benefits of multiple checking accounts

When using multiple checking accounts for budgeting, each account should have its own specific purpose. Designate one account for paying bills only, and avoid accessing it for everyday spending. The other account would then be your everyday spending account for items like groceries, gas and fun, impulsive purchases. This way you can keep track of both accounts without worrying if buying groceries will make your rent check bounce. It could also help you to rely on a credit card less as you're more closely managing your finances.

Options for multiple checking accounts

Be strategic in your choice of second account. Having the second account could help you earn a little interest or perhaps help with service charges. These options may make sense for your second checking account:

  • Checking accounts with interest require a higher account balance, but they also earn money while providing you with convenient access to your funds. When you open an interest checking account in addition to your basic checking, you can use the basic account for bills while maintaining a higher balance in the interest checking, using it only for smaller everyday expenses.

  • Joint checking accounts are often used by spouses to pay the bills or other shared expenses. You may also want a second personal account for individual expenses or surprise gifts for your spouse. Another common reason to keep a separate personal checking account is to pay off any debt you don't want to pass on to your spouse.

  • Banking packages reward customers who have multiple accounts. Rewards may include waived fees on money market accounts, automatic transfers between accounts or goal tracking options. Usually the second checking account in a package is an interest checking account to help increase your funds.

Small business checking account benefits

If you own your own business, consider opening a small business checking account in addition to your personal checking account. As a business owner, you can choose accounts that waive monthly maintenance fees or set the number of transactions you will make a month. If you manage a non-profit organization, you could set up an account with low monthly transactions that would even earn you interest. However, it's a good idea to maintain a second checking account for private purchases and personal bills.

A few cautions with multiple checking accounts

The most important thing to remember is that multiple checking accounts means more accounts to manage and monitor. This could also mean twice the maintenance, inactivity or other fees from the bank should you fall below balance thresholds. So, be sure to stay on top of your finances to avoid any bumps in the road.

Open a second checking account with Citizens Bank

Consider the benefits of multiple checking accounts with Citizens Bank. Compare different account options to decide how you would use a second checking account and if it is a system that would work for you. Find out more about Citizens Bank checking account options by talking to one of our representatives at 1-877-360-2472, or apply for a checking account today.