Should I keep multiple accounts in Canada?

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  • November 20, 2021
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Having multiple bank accounts in Canada has its perks and drawbacks. Let’s compare the two options to help you decide what suits you best.

Depending on your financial goals, you may be wondering whether it’s a good idea to keep your money in multiple bank accounts. Though keeping all your hard-earned cash in a single place may be the most convenient and straightforward option, multiple bank accounts can have their perks too. When having multiple accounts, you have the option to either keep multiple accounts in a single bank or different banks. Let’s weigh the options so you can have a better idea about what works best for you.

Keeping A Single Account

Pro 1: Easy To Manage

Instead of the hassle to remember multiple account numbers or logging in to multiple platforms to access them, you can view and access all your money from a single source.

Pro 2: Easier To Track Savings

Besides, it’s easier to keep track of your spendings and savings when all your money is in a single place.

Pro 3: Lower Fees

Opening new bank accounts, sometimes even at the same bank, means additional charges. Keeping a single bank account translates into lower one-off and ongoing charges.

Con 1: Increased Potential Risks

Though the most reputable banks have a robust security system in place, if there is a security breach, you may drain all your savings if they were locked in a single account.

Con 2: Miss Out On Diverse Financial Goals

Different types of bank accounts, including TFSA, RRSP, saving accounts, and chequing accounts, offer different perks suited to different goals. Keeping a single bank account might mean that you’re missing out on many potential benefits.

Keeping Multiple Accounts In One Bank

Pro 1: Easier Management

Having multiple bank accounts in a single bank is almost as easy to manage as a single bank account. You don’t have to worry about remembering a bunch of passwords or logging in to multiple websites. All your bank accounts are easily accessible through a single online banking platform.

Pro 2: Additional Perks

Banks often reward their customers with added perks if they manage most of their money through their platform. These benefits may include access to premium services, higher interest rate, personalized financial advice, and more.

Pro 3: Lower Charges

Keeping all your accounts in a single bank means lower costs, much like purchasing package deals. The bank may offer subsidized fees for opening new bank accounts with them.

Con 1: Miss Out On Some Benefits

Partnering with a single bank may mean you could miss out on some of the benefits that other banks are offering. Different organizations offer different perks to attract customers. These may include reward credit cards, cash rewards, better interest rates, and more.

Con 2: Potential Risk

As with keeping a single bank account, there’s always a risk of draining your funds if there was a security breach. However, as long as you partner with a reputable organization that offers powerful security and insurance, you have nothing to worry about.

Keeping Accounts In Multiple Banks

Pro 1: Better Deals

Different banks offer different benefits and deals. Opening accounts in multiple banks may allow you to take advantage of the extra benefits which may not all be offered by a single bank. However, these benefits often come with conditions, like depositing a minimum amount. Consider all the terms of the bank before opening an account with them.

Pro 2: Separate Funds

You might have different goals in mind. If you want to maintain a separate fund for buying a house, a new car, or paying for your child’s university fees, it may be easier to organize your savings in a separate account.

Pro 3: Improved Security

Distributing your money among different banks is a good protective measure against a potential security breach. In case of a theft or bank failure, the funds you have in other banks will still be safe.

Con 1: Higher Fees

Extra bank accounts in different banks often mean extra fees. Be aware of any hidden charges that the bank may soon burden you with. Different banks have different charges for opening a new account, in addition to the ongoing monthly or annual charges. You may be better off sticking to a single bank if they offer a discount on opening additional accounts.

Con 2: Harder To Manage

With different banks, you’ll need to remember different account numbers and passwords. Accessing money from different platforms and keeping track of your savings may be difficult if you have your money distributed in different banks.

Conclusion

Ultimately, the decision depends on your priorities and financial goals. If you’re interested in keeping things simpler and lowering the costs, maintaining a single bank account, or even multiple bank accounts in a single bank might be a better option. Otherwise, managing money at different banks may offer a range of amazing benefits.

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