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Many accounts with one bank?
Old 10-25-2006, 03:05 PM   #1
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Many accounts with one bank?

Hi all - first post for me. Simple - hopefuly not stupid question:

Are there any advantages to having your cash deposited across a few banks and accounts or is bigger sums in fewer accounts better?

Currently my personal checking, personal savings, business checking, business CD and another checking account that I use for managing rentals are all with one bank. Assuming competitive rates - is this a bad position to be in?
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Re: Many accounts with one bank?
Old 10-25-2006, 03:12 PM   #2
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Re: Many accounts with one bank?

Assuming that you're not exceeding the FDIC insurance limits of $100K ($250 for IRA money) I can't see why it would be a problem.

If you do have them all at one bank I would make sure that you are using your leverage to get better deals from them than somebody walking off the street would (higher rates or lower fees)

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Re: Many accounts with one bank?
Old 10-25-2006, 05:52 PM   #3
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Re: Many accounts with one bank?

The danger that you'd lose track of your money (forget about one of the accounts) is probably greater than the danger that you'd lose your money because the bank fails.

Unless your savings account is getting 5% or so, I'd recommend considering a MM account instead. I try to keep no more than $1,000 with my bank.
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Re: Many accounts with one bank?
Old 10-25-2006, 07:49 PM   #4
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Re: Many accounts with one bank?

Thank you for the replys.

The CD is getting 5.25 APY
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Re: Many accounts with one bank?
Old 10-25-2006, 08:13 PM   #5
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Re: Many accounts with one bank?

If I had $110K, I'd leave it in one bank. If I had $1M, I'd spread it around. I could live with losing $10K (the amount not insured), I couldn't stand to lose $900K. Manage your risk.
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