How Many Bank Accounts Should You Have? (I Have 4 — Here’s How I Use Them)

How much interest did your bank give you last year?

If the answer is less than $ 10 … then you can use the wrong account setup.

The truth is that most people are leaving easy money at the table, as they have not arranged their bank accounts smartly. I used to be one of them. Now, my wife and I use a four-a-coast system that invests our expenses, savings and super clean.

And we earned $ 798 in interest last year. Here is our setup.

How our four-bank-account system works

Here are bank accounts that we use and how we divide our money between them:

• Two checking accounts: Wife and I each have an individual checking account in Big Banks (Bank of America and Chase), where our salary accumulates. This is how we pay grocery items, bills and everything in the middle. We try to keep the minimum balance in them, as they earn almost zero interest.
• A High yield savings account (HYSA): This is where our long -term savings and emergency funds are stopped. Hysas earn more interest than regular savings accounts. We use an online bank that pays about 10 times more than the national average. This is our biggest earning as far as interest goes.
• A Money Market Account: This account is connected to our brokerage with fidelity. We used to invest a lot of real estate and store money here for a short period. Money market accounts also earn a high yield, so they are great for parking cash. These days we do not have a lot here, but it is really easy to move money easily in our investment accounts.

Here is how our money flows:

• First of all, the land in our individual checking accounts pays the land.
• We have established monthly auto-transfers that send direct savings to our high-tops savings and brokerage.
• All our expenses go to credit cards (paid in full monthly), with payment with payment.

It is simple, earns us interest, and every dollar works.

Why do you need at least one high-up-up savings account

If you have saved 0.01% interest -earning basic checking account, you are missing with easy money.

A High produce saving account (HYSA) The FDIC is insured for safety. Today’s top Hysas are paying up to 4.40%. This means that a traditional account can earn $ 10,000 in a year compared to just $ 1 in a year.

In this way my wife and I earned $ 798 in interest last year. We parked our $ 20,000 emergency fund in an online HYSA and saw the month -door interest rolls.

How many bank accounts do you really need?

There is no “correct” number of bank accounts. What does it matter more How You use them, and Where? You keep your money.

At least, I recommend having a checking and a high-high-saving account. Checking is to manage day-to-day activity and cash flow, and HYSA is to build your savings and earn concrete interest.

From there, you can lay layer in more accounts such as your financial goals grow. For example, investing accounts for more savings accounts, funds drowning, or retirement savings for individual goals.

There is no one size-fit-all rules. But there is a rule that I follow religiously: Always add waste cash to work.

Want to work hard for your money? Open a high-ups of savings savings account and start earning up to 4.40% today.