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If it is better to have one or more bank accounts depends on how each depositor manages the money. For example, if characterized as a regular loan customer, then it might be better to have the money in one bank account because it is most likely to obtain more favorable credit terms. But if (s)he is characterized for his investment ability, then it would be better to allocate the money to more than one bank account for a few important reasons. If these reasons are understood it would be very possible to achieve better management of money on a personal level.

Things start with the size of funds that you do have at your disposal. If you have very little money then it would be better to have one single bank account because the potential performance gains resulting from the deposit will be a negligible amount. On the other hand, if you do have lot of money, then it would be better to spread in more than a bank account because you will be able to evaluate better the placement of your money and each bank that serves you (potential profits, service, general feeling etc).

Then continue assessing how you use your money. You can find out through the annual or monthly budget that you have already done. Studying, you will see whether your finances are debts (such as loans and credit cards), or earnings (from your work, any investment, other forms of income). The decision is critical. At this point you will see if it would be better to put your money in one single bank account or not. Keep in mind that having all your money in one bank account brings higher rate which means that your earnings will be also higher.

An additional important point, especially if you are characterized for your conservative investment ability, is the interest rate on deposits, which vary from bank to bank. The variation is because each bank sells or lends the money according to its personal needs and always in conjunction with the competition. This means that some banks have the opportunity to provide a greater rate and with more favorable terms than other banks. For example, the X bank provides 3% annual interest rate of deposits with yield potential of the interest each month. This is a great advantage for any depositor who has some good money because he will be able to use such money on a monthly basis without waiting for the end of each year.

Also very important are the ways services are provided and the number of services. The willingness of banks to participate in technologies/services such as mobile and internet banking is also important. This gets more important in cases where the service points are few. In many cases, it can be a lot but the time and comfort involved with money movements are more precious. Of course some services are not free, and for this you should consider the cost.

In conclusion, remember the size of your available money, the way you use your money, the deposit rate and the cost of service. These are of most concern.

Learn more about this author, Giannis Gr.
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