Do you need to have your checking and savings in the same bank?

If you hold All of your deposits In the same bank for some time, it may be time to branch out.

That’s not it to be able to You have checking and savings at different banks, but many people will benefit from this. Account checking And Savings Account Your finances serve very different purposes in your portfolio, and some banks may specialize in one account type over another. By banking separately, you can find specific account types that best suit your banking preferences, get the best interest rates, and even help yourself meet your spending and savings goals.

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Do you need to have your checking and savings in the same bank?

If you’re in the market for a new bank account, there’s no reason to only consider your current bank In fact, here are a few ways you can benefit from having your checking and savings accounts at separate banks:

Good interest rate

One of the best reasons Open a savings account At a different bank so you can shop around Best interest rate. Many people have checking accounts at large, national banks or small local financial institutions for proximity and convenience. but Best Savings Account APYs Often comes from online banks that don’t have personal access.

If you are willing to transfer your savings balance to a new online savings account, you can potentially earn 12 times higher than the national average. Plus, accessing your money is still easy. Some banks require a day or more to transfer between external accounts, but you’ll maintain relatively quick access to your savings at any time.

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Storage buffer

Another reason to keep your savings account at a different bank is more behavioral. By separating your savings from your spending money, you can reduce the temptation to spend it.

“The bank where you keep your checking account may not be the best place for large amounts that you don’t need for immediate expenses,” Charles Thomas III, CFP and founder of Intrepid Eagle Finance, said recently. CBS News. “Look at some online providers as a potential home for something like your emergency fund that doesn’t require daily access,” recommends Thomas.

More flexibility

When you open a checking account at one bank and a savings account at another bank, you don’t have to worry about compromising any features or account details.

A bank may offer poor savings rates, but you have checking features like a large ATM network, convenient branches, and a lack of application fees. On the other hand, you can find one Online Savings Account With one of the highest rates offered today, but online banks lack brick-and-mortar locations or ATM options when it comes to checking.

With accounts at different banks, you can get the full benefits of your desired savings or checking vehicle without having to settle for a less-than-ideal version of another account.

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When to keep your account with the same bank

Some bankers may still prefer to keep their accounts in one place under certain circumstances.

Maybe you have a checking account with a bank or credit union that also offers great rates on savings. For example, some Online Bank There are checking account options with extensive ATM network and easy digital account access. In that case, you can get the same interest rate elsewhere without switching.

Keeping an account with the same bank may be the only way to get instant access to your savings when you need them. While external transfers can take up to a few days, some banks allow you to transfer between internal accounts instantly – a big advantage if you’re on time. urgent.

Bottom line

If you want the best of both worlds when it comes to banking, consider opening checking and savings accounts at different banks. There are cases where it makes sense to keep your accounts together. But many people will benefit from the good interest earnings and added flexibility they get from separate accounts.

Start earning more from your savings today and compare top savings account rates right here.