Ben Todd | Jun 3, 2017 | 2
Should You Keep All Of Your Money In One Bank?
You should seriously consider keeping all of your money in one bank. Take the time to pick a great bank that suits yours and all of your banking needs. Pick one that treats you correctly, that you are happy with, and that charges fair prices. Pick one and stick with it until a better bank comes along or until your bank starts disappointing or worrying you.
There are plenty of online articles that shout about the downsides of keeping all your money in one account, and almost all of them are a little too biased against keeping money in one bank. That is a shame because for many people there are plenty of upsides to having all your money in just one bank.
One Bank Has the Advantage of Logging Into One Place and Using One Platform in One Location
There are apps that allow people to log into numerous banking and online accounts at one time. They exist because people become weary of logging into one account, signing out, logging into another, signing out and so forth. Instead of downloading an app to log you into your many bank and online accounts, you may simply log into one bank’s account by having only one bank account to start with.
Almost all banks in the US have online banking these days. They allow you to conduct business from your bank accounts via a web browser on a desktop computer, and some allow you to conduct business from your account with your Smartphone, tablet or mobile device.
All the banks (online and offline) have their own way of doing things, but most will only have you log in one time while still allowing you to conduct business with a great many of their services and accounts. For example, you may be able to log in once and conduct business with your checking account, your savings account, your investments account, and so forth without having to log in and log out again.
Keeping your money in one place gives you one location from which you may conduct your personal banking business, and it means you do not have to log in to numerous accounts to conduct your business.
Putting All Your Money in One Bank Makes It Easier to Watch Over and Monitor Your Money
Scammers and fraudsters work in a number of weird and wonderful ways. A common trick is to draw out just a dollar to see if your account is active and to see if you notice. The scammer may then wait weeks or months, typically until the end of the month, before drawing out a larger amount. Keeping track of tricks such as this may be tricky if you have to sign in to six different accounts every evening.
Whether you are budgeting and keeping a close eye on your money, or whether you are being vigilant against misuse and crime, it is easier and quicker to monitor and watch over one bank account than it is to watch and monitor many. Even if you have several accounts with just one bank, it is often a case of a quick click here and there to see your next account.
Monitoring and watching over your accounts is both easy and quick, and you stand a far better chance of catching a fraudster, an incorrect charge, account misuse or criminal activity.
Having Your Money in One Bank Makes Maintaining and Managing a Budget a Lot Easier
The biggest problem that most budget makers and users have is inputting the information and keeping their budgets up to date. The reason people have trouble with it is because inputting information and keeping it up to date is boring and it feels like work. The second biggest problem is missing income and outgoings so a budget goes wrong without the user knowing why.
Keeping track of your money is time consuming, and it becomes more time consuming if you have to check more than one bank or online account. You may have to calculate how much each category in your budget has, and it is far easier from one platform (on place) than it is from a range of online and bank accounts.
More accounts means you have more to think about and more to check. It also means you have more room for error and more potential problems such as not being able to access one account, or another account being updated too late. Keeping track of what you have spent when it doesn’t show on your account right away is also more difficult if you have spread your spending and transactions across many accounts.
Your Standing With Your Bank Will Rise Significantly and They May Give You Preferential Treatment
It is unfair to say that only High Street banks will give you preferential treatment if you do all your banking with them, but in my experience, the experience of my colleagues, friends and many of my associates, I have to say that it is true. I have seen businesses owners march into banks and make several demands and have them all met with a smile and handshake. Does such a thing happen with online banks? I am not sure, I am only sure that I have seen it and heard of it with High Street banks.
Your online bank may be willing to give you preferential treatment if you do all your banking with them. If they will not or do not, then seriously consider moving your account to a High Street bank that has a track record for treating its customers correctly.
Preferential treatment is okay for getting what you want, it is also a great way of having your bank ignore your credit rating, ignore the rough patch you are going through, or ignore the fact you have not put as much money in your account recently, during times when you would like your overdraft extending. Plus, some bank employees are given bonuses if they can get you to sign up for more than one of their financial products, such as savings accounts, mortgages, insurance and so on.
One of the perks of some banks is that if you put all your money into their bank, and if you use their bank for all your banking needs/transaction, then they will treat you favorably with better products, acquiescing to your demands, and even a little rule bending in your favor.
Using Just One Bank Makes It Easier to Prove Where Your Money Is Coming in and Going Out
Let’s say you are dealing with the IRS, or you are dealing with a divorce lawyer, a child support lawyer, or any number of interested parties that want to see how much you have and how much you earn, you will find it easier to prove where it all is if you use only one bank.
You may need to prove where and how your money is moving to if you have a new business partner. There may come a day when you need to prove where your money is and where it is going to the police because of some criminal matter. You may even wish to prove your wealth for a certain advantage within third-party financial companies or to gain membership to certain clubs.
Why you wish to prove where your money is coming in and where it is going is your business. By using just one bank, you make it very easy to prove your income and very easy to prove where your money is going, where it has been and where you are storing it.
You May Play the Banks Off Against Each Other if You Only Use One Bank to Conduct All Your Transactions
If you have used a single bank for years and you wish to change to another, you may make the promise that you are going to use that bank for all your banking needs and transactions. You may prove that you are person of your word by showing that your current bank holds all your accounts and all your money.
If you can show another bank or financial institution that you intend to conduct all your banking business through their bank/institution, and you can show that you have been doing just that with your current bank, then the new company/bank may be willing to make some very tempting offers for your business.
Saving Your Money and Using Your Money in Just One Bank Will Slightly Increase Your Chances of Loss if Your Identity Is Stolen
There are two sides to the security coin. On the one hand, if you have numerous online accounts and bank accounts and you spread your money out, then it is harder to make a complete loss if your identity is stolen. On the other hand, if you have numerous accounts then your attention is spread between all of them and it becomes harder to spot and guard against losses from identity theft.
If you have just one account, then somebody may steal your identity and gain access to all of your money. There are ways to protect yourself from this and ways to recoup your losses; suffice it to say that you may lose a portion of your money. You may lower the chances of this by locking your money away in different investments that are difficult to draw out quickly. You may also lower the chances of a big loss by having numerous accounts and not keeping your money in one bank.
Sadly, if you do not keep your money in one bank, then you lose the many perks that are mentioned on this article. Plus, managing different accounts is difficult and you increase your chances of losing some money through one of your smaller accounts.
There are ways you can protect yourself if you put your money in one bank account. If you do your research, you will see there are insurance policies, there are increased security measures, better encryptions, longer passwords, and diversification methods and money-locking methods you can use to avoid a total or large loss if somebody steals your identity. You may also call most banks and ask that your account be frozen until your identity theft problem is over.
Maintaining the Security of Your Accounts in Just One Bank Is Far Easier Than Maintaining Security in a Number of Banks and Accounts
Pick a bank that has exceptional security. Pick a bank that has security measures that need a stupendous amount of cracking and hacking before they become vulnerable. For example, HSBC makes you enter a customer ID, a password of your choosing, and then has you use a pin-protected digipass device that generates a new security number every time you log in. Even with your user ID, your secret questions, access to your email account, and your password, people are still unable to get into your bank account.
There are even some banks that allow you to set your security settings higher in a way that causes them to freeze your account more readily for things as innocent as you setting up a new online gambling account and trying to send money to it.
Be as proactive as you feel you need to be. Get extra insurance if you wish, or diversify in ways that makes it difficult to gain access to your money. Put limits on your accounts so that thieves cannot draw out big amounts in one session. Set up alerts that may highlight deviant or criminal behavior, and take personal responsibility for the safety of your money.
All of Your Money May Not Be Insured by the Government if One Account Holds More Than $250,000
A common reason why many articles say that you shouldn’t have just one bank account is because the FDIC only insures your money up to $250,000 per person and up to $500,000 for joint accounts. There are some online accounts and some banks that will automatically transfer amounts above $250,000 into other accounts that are protected with FDIC insurance.
If you have a quarter of a million in your accounts, then you may consider having more than one bank or online account, but there is still no direct need. After all, you can move your money so that you have than $250,000 in your. Plus, unless your money is in a business, investing, or savings account, it may not be a good idea to have such large sums lying around your checking/current accounts without it earning interest.
You do not have to sign up for more than one bank account if you have more than $250,000. You may move your money around, you may have numerous accounts with just one bank, you may have your money automatically invest when it reaches a certain amount, and you may invest your money manually so that you do not hold over a quarter of a million in one account.
Hiding Your Money From Litigious People Such as Ex-wives or Ex-husbands Is Easier With Numerous Bank Accounts
Earlier, I wrote that it is easy to prove where your money is coming in and where it is going out if you just have one account. If you are having trouble because others are coming after your money, then you may opt for several accounts. Your accounting and bookkeeping should be as transparent as the law dictates, but it is trickier trying to figure out what you have and how much you are using if you have numerous accounts.
For example, if you have a bank account with a small online company that you only use to pay your car insurance, you may still create a little confusion. Is the $1250 in that account for a quarterly payment, for a lump payment, or is it the money you have saved for your renewal. That is just a few questions for one account, so imagine how tricky it becomes if you have several accounts with several different uses for each.
There are times when keeping your money in just one bank and doing all your banking business with just one bank may work to your disadvantage. If you have litigious people coming after your money, then you may find it easier to blur your financial activity and your assets if you have numerous accounts.
The Chance of Completely Losing Your Money Because the Bank Goes Bust Is Not A Problem
The FDIC insures your money against your bank going bust. You may recover as much as a quarter of a million (as discussed earlier in this article). If you have more than $250,000 in one account, then move it to another investment product that also has FDIC protection that doesn’t count as part of your bank. Don’t forget that if you do not have more than $250,000 in your bank, then there is no risk for you whatsoever.
If you have more than $250,000 and you are afraid your bank may go bust (which is almost impossible these days), then there is a small chance you may lose whatever you have over the amount of $250,000. If you are truly worried, then sign up with another bank or banks and split your money so you only have $250,000 in each. With all that being said, if you are not sure if you should keep your money in one bank account or split it between FDIC insured banks, then read this question and answer page about FDIC insurance right here.
Banks going bust is almost impossible these days with the current “They are too big to fail” attitude that the US government has. However, the USA is in 20 trillion dollars of debt, so the chances of them funding bank bailouts are unlikely. Remember that standard deposit insurance coverage is depositor, per ownership category and per FDIC-insured bank.
Transactions and Transfers Will Take Less Time to Go From One Account to Another in Just One Bank
Moving money from one account to another often takes time. Sometimes, you may move money from PayPal to your bank account within just seconds. Then there are times when you move money to your credit card from your bank account and it takes two or three days. The time that transfers and transactions takes will vary between account and transaction type. However, common sense suggests that transfers and transactions between one bank’s accounts and its other accounts (within the same bank) will be quicker than if you transfer between different banks and online accounts.
One area where using your own bank is almost always quicker than using transfers between different bank accounts is if you wish to exchange and transfer currency. For example, if you have one currency account and wish to transfer from one currency to another and transfer from one account to another; it is almost always quicker doing it within your own bank than it is to use a third-party company.
Pick a Good Bank and You Get the Same Pleasant User Experience Throughout All Your Banking Business
It is your job to pick a good bank with great rates and a service that suits you. With that in mind, you should pick a bank that gives you the type of customer service and user experience that you desire (nay, demand). If you have tried a few online banks and few online money accounts, you will have noticed that the user experience varies so much from one to another that it is almost staggering. Choose a bank that gives you the online and offline experience you demand.
There is plenty of competition these days. There are plenty of High Street banks, there are plenty of online banks, and there are many online money accounts you may sign up for and with. Use the fact that there is so much competition by shopping around to find the best service, rates and user experience possible.
Keeping Your Savings Out of Sight and Out of Mind Is Marginally Trickier
Having and keeping all your money in one bank is certainly not a bad idea, and it is going to suit some people if their circumstances and priorities appropriately organized. However, some people may benefit from having numerous savings accounts. There are many ways to save, and having multiple savings accounts may help some people a great deal. Keep all your money in one bank, but consider having multiple savings accounts either with the bank you are currently with, or with different banks and financial institutions. We have an article that explains the benefits of having multiple saving accounts that you may find very useful.
Pick a Bank With Low Fees and Enjoy Your Low Fees Across the Board When Conducting Banking Business
Are there banks that have low fees across the board? No, there are not. One bank will have high fees for things such as currency exchanges, and others will have high fees for unplanned overdrafts. Your job is to figure out which transactions you conduct the most and find a bank that charges the least for them. For example, if you are often sending money to third-party accounts such as Google Wallet and PayPal, then a bank with free instant transfers will suit you. On the other hand, if you often draw money from ATMs, then a bank that has free ATM use and that refunds ATM fees is desirable.
Conclusion – Mostly Positive Points About Having Your Money in One Bank
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The reason this article is so biased towards keeping your money in one bank is because there are so many articles that claim having numerous accounts is the best option that a little balance is needed. There are numerous benefits to keeping all your money in one bank, and there are numerous benefits to keeping your money spread around different accounts. Your circumstances, your financial plans, and your priorities are what matter when you make your decision.