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Perks of having accounts at multiple banks and credit unions

Financial Advice

MONEY MANAGEMENT

Articles and research about personal finance

Having multiple banking relationships can be a huge asset

Financial Advice

MONEY MANAGEMENT

Articles and research about personal finance

Benefits of Having Multiple Banking Relationships

Published June 9, 2016 | Updated October 17, 2017

It may seem a little odd to read on a credit union website, but yes, we really are telling you it’s OK to have a few accounts with different bankers! Why? Because, in the five decades we’ve been helping Austinites manage their personal finances, we’ve learned that there are more than a few perks to having more than one banking relationship.

Separate Your Savings From Your Checking

Among the many good reasons for having a savings account is the desire to accumulate money for future use. However, if you keep dipping into that savings account to bolster your checking account, then it’s never going to amount to much.

But if you have a special, dedicated savings account in a completely separate institution, then it’s much less convenient to transfer money from that account to your checking—not impossible, of course, but harder. Think “out of sight, out of mind” when you do eventually check that savings balance at the other institution, you may be pleasantly surprised to see how much it’s grown!

Diversifying Your Assets

It’s never a good idea to put all your eggs in one basket—not that you’re likely to lose your life savings in this age of FDIC and NCUA coverage. When you factor in the number of account owners, the amount you have on deposit, and the number of “qualified beneficiaries” you have on the account, spreading your assets across multiple institutions can help you increase your federal deposit insurance coverage.

Multiple Allies Are Better Than Just One Ally

You never know what kinds of surprises life is going to bring you. We all hope that we’ll never need an emergency loan someday—but if that day ever comes, wouldn’t it be to your advantage to have a relationship with more than one credit union or bank? Of course it would, because if one lender turns you away, one of the others might not.

Each Bank Has Its Specialty

The truth is, some banks are better than other banks at certain things—and no bank is better than all other banks at everything. For instance, some large, national banks have great credit cards—something their size lends itself to. Some excel at international banking and others have an expertise in the commercial side of things. On the other hand, your local credit union can do a lot of things for you that the larger banks can’t, especially in the areas of free personal checking, loans, and small-business needs. Perhaps wealth management is a particular bank or credit union’s strength. There is nothing wrong with playing to a particular institution’s strengths. It’s your money, after all; get the star in each banking discipline to handle it!

Building a Banking Relationship

A great way to find out which banks are best is to actually engage with them by giving them some of your business. How better to learn who delivers best than to have a relationship with more than one bank at a time? How do they compare? You’re not going to really know that unless you trust them with some of your assets. Think of your various accounts as auditions for the banks!

Build Your Relationship With Amplify!

Amplify's deposit account rates are among the best in the area, making us a great financial institution to keep your hard-earned savings. We offer basic Savings Accounts, Money Market Accounts, CDs and IRAs. And since we’re owned by our members like you, you can rest assured that you're in good hands.

Click below to Open an Account or to use our Savings Calculator to see how much you can earn on your savings!

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