Why You Should Reconsider "Scattering" Your Bank Accounts
It's not uncommon for people to have more than one bank account—particularly, different accounts across different banks. According to research by bank analytics firm Novantas, about one-third of people who switched banks recently (or intended to switch) had checking and savings accounts at different banks. Today, "scattering" your saving and checking accounts in different banking institutions is an ever increasingly popular option with the ease of mobile apps and online transactions.
However, scattering your accounts is less advisable among financial experts. "With the right bank, you can simplify the time you spend managing your money and investments," says John Sellers, preferred rewards executive for Bank of America. Other factors such as reward redemptions, lower fees, as well as better rates are influencing factors trend of bank consolidation. If you need further convincing, here's how it can benefit you.
It simplifies your money when kept in a single place.
Sellers explains that committing to one institution establishes a more long-term relationship with your bank, it's often more convenient, and you can enjoy additional perks of being able to manage everything essentially under one bank's roof. Another reason for consolidation of your bank accounts is that it helps to simplify your money even in complicated circumstances due to a life event or a larger world event like the pandemic. Other factors such as lower fees and lower rates, a single customer service, and keeping accounts in sync with each other in the event that one bank closes.
You'll enjoy more reward opportunities and lower rates.
Whether you have two or multiple accounts within one bank, it opens opportunities to obtain banking rewards arraying from credit card reward bonuses, investing discounts, home and auto loans, and no-fee banking services. For example, if you were to consolidate your accounts to one bank, such as Bank of America, you'd reap the benefits of Bank of America's Preferred Rewards Program. By consolidating accounts, your qualified savings and investments will grow jointly and, in return, so will your rewards and benefits.
Your accounts will accrue more interest over time.
Sellers emphasizes the importance of banking with an institution that will financially mature with you over time. After all, you want to consolidate within a bank that will make your money work smarter, not harder. "Finally, you should choose a bank that is innovative and offers the best solutions and technologies to make your banking simple and easy," he says.