I’m a Bank Teller: 6 Benefits of Having Multiple Bank Accounts

Having one checking and one savings account at the same bank used to be the norm. But with the proliferation of internet banking and the ease of transferring money between accounts, is it better to have multiple bank accounts?

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We asked Margaret, a bank teller from Massachusetts, about the benefits of having multiple bank accounts . Here’s what she had to say.

Save More By Separating Checking and Savings

Separating your savings account from the account you use to pay your monthly bills — usually a checking account — is the first step. “Have your paycheck direct deposited into two separate accounts,” Margaret recommended. “Deposit what you need to pay your bills and fund your regular expenses into one and put a set amount into your savings account each month. This puts your savings on autopilot. You don’t ‘see’ that money, so you don’t miss it.”

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Maintain Two Checking Accounts

Having two checking accounts can be even better, according to Margaret. Deposit the money needed to pay your monthly bills in one and set up auto pay from that account. The other account can be for your monthly out-of-pocket expenses like groceries, gifts, entertainment, and so on. This account should have a debit card that you use for these purchases. That way, if your debit card is lost or compromised, and you have to get a new one, your regular monthly bills aren’t affected.

Supercharge Your Savings Goals

Set up separate accounts for short- and long-term savings goals, or for specific things like a child’s education or a down payment on a house. “There’s a psychological advantage to setting up a separate account for a specific goal,” Margaret said. “Watching that money grow and seeing the progress you’re making toward making that financial dream a reality is very motivating.”

Better Deposit Interest Rates

“Interest rates are all over the place,” said Margaret. “Watch the rates to make sure you’re getting the best available. Moving a savings account is a pretty simple matter these days, so don’t be afraid to do so if you can get more interest.”

Margaret also recommended being aware of your interest rate. “Banks will offer introductory rates to try to get new deposits. Read the fine print and check your statement. In most cases, your rate can change at any time so be sure you know what it is.”

Better Loan Interest Rates

“Look at your total financial picture and how different accounts can impact that,” Margaret suggested. “For example, if you’re shopping for a mortgage or a car loan, you can sometimes get a better rate if you open an account at the institution that’s providing the loan. You definitely want to take advantage of that.”

Full FDIC Insurance Protection

For those with significant bank balances, it’s important to make sure your accounts at any one bank don’t exceed the amount that is insured by the FDIC.

“If your bank fails, you are insured for up to $250,000 per account type at that bank,” Margaret explained. “Account types include individual and joint, and retirement (IRA) and non-retirement. So, if you have $250,000 in an individual non-retirement account, and $250,000 in an IRA at the same bank, you’re good. If that IRA has $400,000 in it, however, only $250,000 is insured.”

The solution here is to open an account at a different bank once your balance reaches $250,000 in any single account type.

Having multiple bank accounts, even at multiple banks, can help you achieve your financial goals more easily.

This article originally appeared on GOBankingRates.com : I’m a Bank Teller: 6 Benefits of Having Multiple Bank Accounts