When you’re regularly paying bills and saving money, you might start looking for several bank accounts. You might find yourself asking how many bank accounts should I have and which is the best?
Most people need at least one bank and an account for savings or investing. These two accounts help with essential financial management, such as depositing and withdrawing cash, paying bills, making purchases, and saving money.
If you have several accounts, get organized by clarifying the purpose of each account. While having more accounts to meet different goals is beneficial, managing them can be overwhelming.
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Different Types of Bank Accounts
Besides a checking and savings account, we’ll discuss other types of useful accounts. Different accounts may offer attractive features, or you may separate account purposes to manage your finances effectively. For example, you can organize accounts into long term or short term use. Separating accounts into different purposes helps you manage your finances more effectively.
A checking account is a basic bank account that lets you deposit and withdraw money for daily expenses. You can easily access funds using a debit card or by writing checks. Most checking accounts earn very little to no interest; if they do, the interest rates aren’t high enough to encourage saving.
Savings accounts encourage saving money and are restricted by limited withdrawals. You earn a moderately higher interest rate in savings than in checking. However, transfers and withdrawals have a federal limit of six transactions a month. Savings accounts aren’t typically used for paying bills – they do not come with a debit card or check-writing privileges.
High Yield Account
If your goal is to grow your savings faster, a high yield account may fit the bill. This type of savings account can pay 20-25 times more than the standard interest rate on savings accounts. If you’re looking for high yield accounts with the best interest rates, consider online banks and providers.
Certificate of Deposits (CDs)
A certificate of deposit is another type of savings account offered by credit unions and banks. It provides higher interest rates than a regular savings account but with more restrictions on the money deposited. You agree to leave the funds untouched for a fixed period of time or face a withdrawal penalty.
Money Market Account
A money market account is a type of hybrid account that combines the features of a checking and savings account. They are less flexible than checking accounts with limited debit card and check issuing privileges. However, money market accounts typically have higher interest rates than traditional savings accounts.
Business Bank Account
Businesses usually need a bank account to separate business transactions from personal. Banks offer both business savings and checking accounts that mirror personal accounts in features. For example, business checking accounts have unlimited withdrawal benefits and check writing. Businesses can manage both customer payments and bill pay from business bank accounts.
Retirement accounts are investment accounts designed for retirement savings. A popular example is an Individual Retirement Account (IRA), which also offers a tax-advantage. With an IRA, you contribute an annual, tax-deductible amount that you can choose to invest in financial instruments such as stocks and bonds. Withdrawing before retirement results in a penalty fee (usually 10%).
Progressive Banking with MoneyLion
MoneyLion is a one-stop solution for your banking and investment needs. Our curated financial products can help you meet your financial goals.
RoarMoney is MoneyLion’s demand deposit account. You pay $1 per month with no hidden fees or minimum balances. Other perks for the account include:
- Rewards program where you earn as you spend
- Secure contactless payments and mobile wallet capabilities
- Spend Tracker Report to help manage your spending habits
- Price Protection for claiming refunds when you find a cheaper price
Instacash allows you to link your checking account with your MoneyLion account to request an interest-free (0% interest) cash advance. Request up to $250 and the funds can be credited to your account within seconds. There are no credit checks performed and no limitations on how you spend it.
If you are a RoarMoney account holder, you can get your paycheck two days early. Once you link direct deposits, you can speed up your payday.
Credit Builder Loan
A Credit Builder Plus Membership allows you to borrow a small loan to give your credit score a boost. The interest rates are competitive and there are no hard credit checks involved (the inquiry won’t show up on your credit report).
Scheduling automatic repayments on the loan is simple so you never miss a payment. Each month, MoneyLion reports your on-time payments to the three major credit bureaus, which can boost your credit score. The loan is due at the end of 12 months.
MoneyLion’s investment account helps supercharge your saving goals. For $1/month, no matter how much you invest, you get a fully-managed and personalized investment portfolio with no asset-based management fees.
With the Auto Invest feature, set up recurring transfers that automatically move money from your checking account to investment account weekly, bi-weekly or any period of your choice. Put your investment strategy on autopilot so you can work on growing your savings consistently.
Compare Average Bank Account Fees to MoneyLion RoarMoney Account
|RoarMoney||Average Checking Account||Average Savings Account|
|ATM fees||Free AllPoint ATMs||$4 Out of Network fees||$4 Out of Network fees|
|Account Fee||$1/ month||$9.60 +/month||$5/month|
Easily Manage Bank Accounts with RoarMoney
You can open multiple accounts at any bank, but many of them come with minimum balances or pesky fees. RoarMoney offers access to 55,000 no-fee ATMs worldwide, cashback rewards, and 0% APR Instacash advances, all for only $1/month. Get more bank for your buck with a RoarMoney account.