Multiple Bank Accounts
Is there any advantage of having checking/savings account with multiple banks? I happened to have accounts on both Wells Fargo and Chase. Now, I need to satisfy minimum cash limit on the accounts not to pay for account fees. Planning to close WF accounts. Also, does closing accounts have any negative effect on credit score like for credit cards? What do you suggest?
Have account in at least one major bank (Chase/BofA/WF). Go ahead and close WF checking/savings account. Closing checking or savings account doesn’t affect FICO score for credit cards.
Why do you need an account with at least one major bank?
@DQ - nationwide availability of banking. My main financial institution is a local credit union. I did a mortgage refinance last year and I had to sign paperwork and pay escrow when I was travelling out of state. Thank goodness I had a backup account at BoA, so I could get a cashier check to pay escrow
Should have asked before opening the accounts 😎
Credit unions, all the way.
Can you elaborate on this? Have no experience with credit union.
They're co-op non profits that do the same thing as banks. Lower fees, borrowing rates are the general features. https://en.m.wikipedia.org/wiki/Credit_union
Thanks. Seems like a good option.
Also makes a good "hub" if you do have multiple accounts since Ally does fast and free 1 day electronic funds transfers to and from most other banks. Their customer service is great and their website pretty good.
Closing accounts has zero effect on credit because they don’t report. No. Deposit accounts (checking, savings) are insured up to $250,000. If you plan on having more cash than that, most people would say you’re keeping too much in cash. It’s a two way street: 1.) If you’re keeping only one account with ALL your cash, don’t make any online purchases with your debit card. Use credit and just pay it off. Puts you at risk for the most damage if fraud occurs. 2.) Keep a smaller, separate account for daily expenses and only swipe with that one.