Nowadays, it’s common knowledge that you can have multiple savings accounts. It’s also not hard to see how having multiple savings accounts like a MIDFLORIDA Regular Savings account and a MIDFLORIDA Money Market account could be beneficial.

But what about multiple checking accounts?

Of course, this raises the question of why you need more than one checking account. What can you do with multiple checking accounts that you can’t do with a single account?

Opening a second or even a third checking account has many advantages. Keep reading to find out if multiple checking accounts are right for you. 

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Benefits of multiple checking accounts

When you open a second checking account, you unlock several benefits that can transform your finances.

Separate your transactions

The most significant benefit of having multiple checking accounts is that you can separate transactions. This can make a lot of sense if you’re trying to track income from different sources, such as your main job and your side hustle.

Of course, payments also count as transactions. If you’re trying to keep track of expenses for different purposes, such as:

• Medical bills
• Vacation
• Business expenses

Multiple checking accounts can help you keep track of everything you’ve spent in these categories.

Business accounts

It’s worth pointing out that separating your transactions is especially important if you own your own business. Keeping your business transactions in a separate account has a lot of benefits:

• You’ll have a better overview of your business’s financial health       
• Filling out your business’s tax returns will be easier
• Your personal funds may be protected if your business gets sued
• You won’t violate the terms of your account which prohibit processing business transactions through a personal checking account

Multiple checking accounts help you stick to a budget

Opening multiple checking accounts can also help you stick with your monthly budget. If you’d like to do this, open checking accounts corresponding to your budgeting categories.

For instance, you might open up a checking account for grocery money, one for entertainment, and one for gasoline.

Once you have the checking accounts set up, all you need to do is transfer the money you budgeted into your checking accounts every time you get paid. You’ll never have to worry about accidentally overspending again.

Take advantage of different checking account features

Different checking accounts have different perks and features.

For instance, you might want the interest rate that a MIDFLORIDA High Yield Checking account offers, but you might also want the advantages of a MIDFLORIDA Free Checking account.

By opening multiple checking accounts, you can take advantage of both accounts' benefits.

Drawbacks of multiple checking accounts

While opening multiple checking accounts offers several benefits, there are also some potential drawbacks.

More checking accounts can make your finances more complex

The biggest challenge you’ll face when you have more than one checking account is that the more accounts you have, the more challenging time you’ll have keeping track of them.

The more checking accounts you have, the more time you’ll need to spend tracking all your transactions.

You might have to pay more fees

The more checking accounts you have, the higher the risk of getting hit with fees.

These fees can include:

•  Standard monthly fees
•  Maintenance fees
• Overdraft fees

The risk of getting these fees increases dramatically if you don’t constantly check your accounts.

While these fees might be annoying individually, multiple fees from multiple checking accounts can add up quickly.

Should you open a second checking account?

There’s no one correct answer to this question. However, by asking a few questions, you can figure out if multiple checking accounts are a good option for you.

Why do I want to open another checking account?

How will this second (or third) checking account help you manage your finances? Is it giving you an advantage you can’t get with just one account?

Do I have enough money to cover the minimum amount requirements?

If you can’t meet the minimum amount requirements for each checking account, the maintenance fees will overshadow any potential benefit.

How often will I be able to check these account balances?

While considering this question, you should also ask yourself whether or not you’ll be opening a checking account at another financial institution.

It’s easy to monitor multiple checking accounts at the same credit union or bank, but it’s harder to remember checking accounts at another financial institution.

Open a second checking account at MIDFLORIDA

When you open a second checking account, you get a lot of benefits. When you have multiple checking accounts, you can separate and categorize your transactions.

This can help you with everything from keeping track of business expenses to sticking to your monthly budget.

If you’d like to get the benefits of multiple checking accounts, either open a MIDFLORIDA checking account online or go to the nearest MIDFLORIDA branch and ask a teller how you can open a checking account.

If you meet the conditions, you can even get a $200 bonus just by signing up for a MIDFLORIDA Free Checking account.¹ Find out more today!

Further Reading Recommendations

Why Are Tracking Your Expenses and Balancing Your Checking Account Important?

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5 Mistakes to Avoid When Consolidating Debt

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Checking vs Savings Account: What's the Difference?

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^{1 Offer valid as of July 10, 2024, and may be canceled at any time. MIDFLORIDA Credit Union membership and eligibility requirements apply. See associate for details regarding fees and terms. To qualify for the $200 incentive, you must open a new Free Checking account with direct deposit ($500 cumulative which must post within 60 days of account opening); accept and open online banking, online bill payment, eStatement, and a debit card; and complete 5 debit card purchase transactions in one calendar month (to be completed within the first 60 days of account opening). No dividends are paid on Free Checking. Annual Percentage Yield is 0.00%. Limit one incentive per Social Security number. Past checking account holders and previous recipients of checking account incentives are ineligible. The incentive will be deposited to new Free Checking account after the qualifications have been met, and will be reported to the IRS. Minimum to open Free Checking is $50.}