Is it bad to open multiple savings accounts?

Question

ive had a checking account with my bank for about 8 months but its almost impossible for me to save money. so yesterday i opened up a savings account so as to have some money put away that i cant touch and will gain interest. but today im thinking of opening another savings account with commerce because i hear they start you with 25-35 dollars in ur account. it won't affect my credit or anything if i have this many accounts, will it?

Answer 1

Best Answer - Chosen by Asker

No, it is not bad to open multiple savings accounts. It will not affect your credit at all.

If I were you, I would open a savings account at an internet bank, which pays more than a neighborhood bank. Commerce Bank pays 0.25% according to their website while some internet banks pay as much as 3.5%. Internet banks normally don't have a minimum balance. It is easy to transfer money in and out. For example, you could set up a regular monthly withdrawal from your checking account at your bank, which will get deposited into your internet account automatically every month. You can put your savings on auto-pilot that way.

For more on internet banking and a list of some internet banks click here http://www.vilkri.com/pubreader.php?page…

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Asker's Comment:

thanks

Answer 2

No. You may list it when you try to buy a house or something, but it won't affect your credit like having credit cards (even if you don't use them). The only limit to how many accounts and different places you can store your money is how many you can keep track of and wrap your mind around. I have multiple accounts in different banks and credit unions. At one time I had 3 different checking accounts that I used for different things. You will have to look at the other advantages to putting your money into a savings account, but interest is not one of them. Typical savings account interest rates won't even keep up with inflation which means that year to year over the long term you're losing buying power! Separation from your spending money is probably the best reason. Once you get more than $500 in your savings account I would move it to something that makes a better rate like a Money Market account or a Certificate of Deposit (CD) if you don't need to have ready access to it.

Answer 3

No, nothing wrong with it. Just be sure to ask about service charges and the minimum amount to avoid them so your savings doesn't get eaten up by fees.

I understand what you're trying to do - it's not a bad plan if you can just make sure you don't dip into the money. My bank started offering one of those accounts where they take $1 out of my checking and stash it in a savings account every time I use my debit card, pay a bill online, etc. I also had them set up an automatic transfer once a month. It's worked well - the account is building nicely and I really don't think about it.

Good luck.

Answer 4

No it is not bad. It does not affect your credit.