BonezParticipantStatus: PhysicianPosts: 118Joined: 04/02/2016
Any upside or downside to having more than 1 high yield savings account? I have an Ally accout currently for my emergency fund with 3+ months all expenses. I will be getting married next month and my soon-to-be wife and I want to start a joint account to save for a house downpayment. For some reason it feels better for me to have a separate account for this as opposed to lumping it in with our EF. Any reason not to have more than 1? Any reason its a good idea? Something better than a HY savings account to use? Thanks.July 2, 2019 at 1:51 pm MST #227253LordosisParticipantStatus: PhysicianPosts: 2165Joined: 02/11/2019
Just makes things more complex. Another site to remember login info for. Another item on your taxes.
I would much rather keep it all in 1 account and just use subtraction as needed to keep it straight in my head 🙂
“Never let your sense of morals prevent you from doing what is right.”CordMcNallyParticipantStatus: PhysicianPosts: 3047Joined: 01/03/2017
One account certainly makes things easier with log-ins, taxes, etc. Having a separate account will probably cost you less than an hour over the course of a year.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorPedsModeratorStatus: PhysicianPosts: 4679Joined: 01/08/2016spiritriderParticipantStatus: Small Business OwnerPosts: 1971Joined: 02/01/2016
Just have more than one account at Ally. Solves all the above objections. People may say it is all mental arithmetic. Personally, I find it helps to segregate. At one time, I had a property tax account, car payment to myself account and a contingency fund account. Ally even lets you label the accounts.BonezParticipantStatus: PhysicianPosts: 118Joined: 04/02/2016
Great idea. I never thought about opening multiple accounts with Ally. For some reason I just feel better about keeping things in different buckets: Emergency fund, house down-payment, next car savings acct (since mine just hit 150k miles).July 2, 2019 at 7:33 pm MST #227353Vagabond MDParticipantStatus: PhysicianPosts: 3486Joined: 01/21/2016
Nope, I have multiple.LordosisParticipantStatus: PhysicianPosts: 2165Joined: 02/11/2019
When you have tons of cash it makes sense to have multiple accounts for the FDIC insurance
“Never let your sense of morals prevent you from doing what is right.”LithiumParticipantStatus: PhysicianPosts: 1225Joined: 02/15/2016
If you have anything close to six figures in cash, Ally isn’t really that good a choice right now. I’ve moved my EF to Wealthfront which earns 2.57%. I can live with the extra login and waiting a couple of days between transfers.July 2, 2019 at 8:27 pm MST #227363Jaqen Haghar, MDParticipantStatus: PhysicianPosts: 207Joined: 07/27/2017
I too keep multiple bank accounts, some high yields and a local. It helps to spread risk around a little, especially if you exceed 250K for single, or 500K for joint accounts. But even if you didn’t, I think it’s a good idea to have access to more than one account.
It’s a few extra 1099s at tax time, which really doesn’t increase complexity, and there really isn’t any increased time commitment.
But it depends on how cautious (paranoid) you are.July 3, 2019 at 10:36 am MST #227475bean1970ParticipantStatus: PhysicianPosts: 569Joined: 07/12/2017
downside is just having multiple accounts.
before banks…pirates buried treasure in different spots…. in today’s era….it is really no different…. FDIC insurance will protect against the bank collapse…(use multiple accounts when you start hoarding cash and go over FDIC limits)…..but other than banking collapse probably a more realistic threat is global cyberterrorism and hacking in your account or just regular fraud (churning debit card numbers and withdrawing your cash/fraudulent check writing/ etc….)…spreading your pirate treasure around mitigates some of this risk which is mostly small but not zero…..July 3, 2019 at 11:13 am MST #227493Jaqen Haghar, MDParticipantStatus: PhysicianPosts: 207Joined: 07/27/2017
I worry more about digital account problems and hacking causing delayed access to funds. I’d bet the bank or FDIC isn’t going to be returning lost funds in a very timely manner, though eventually, with some effort, you’d likely recover them over time.
But I have to admit, I am into security, adverse event planning, and redundant systems…. it’s not just a bank account thing in my case.
I envy the ultra relaxed, but in the occasional emergency they envy me back.July 3, 2019 at 3:26 pm MST #227581EntrepreneurMDParticipantStatus: PhysicianPosts: 398Joined: 06/10/2019
Multiple checking, savings, brokerage, CD accounts.
Good reason is government insurance limits ie risk management purposes.July 4, 2019 at 6:59 pm MST #227834KatiekParticipantStatus: Other ProfessionalPosts: 4Joined: 06/17/2019
I tend to prefer simplicity and as I’ve gotten older I’ve tried to clean up the stray cats and dogs accounts I accumulated over the years. However, a separate account for a down payment might be worth it just for motivation purposes – it also helps keep those funds separated so you’re less likely to view them as extra emergency funds.
I also like the idea of having at least two or three separate accounts. I’ve heard stories from friends of people getting locked out of investment accounts for supposed “suspicious activity” when the activity was perfectly normal. These situations were all cleared up eventually, but in at least one case it took weeks. I like to have at least more than one account to make sure there is always an alternative in case there is a delay accessing a particular account for some reason.July 8, 2019 at 12:56 pm MST #228762