Should you open multiple accounts?
17 September 2008
Online banking makes transferring money between accounts very simple, so you may find that holding multiple accounts could be beneficial to your finances. High interest savings accounts will often only make interest payments in months that you do not withdraw any funds. They will also often charge high fees for withdrawals, whereas transaction accounts that offer low interest rates will tend to specialise in providing good value on withdrawals.
By using online banking to transfer unneeded funds to online accounts that earn high amounts of interest, you may find yourself earning more interest. Keeping track of your accounts and engaging in safe Internet banking is quite important, though. You will also be more likely to become exposed to phishing scams, however, as there will be multiple accounts that you will need to try to access online.
With a small amount of effort thanks to the convenience of online banking, you could optimise your interest returns by using multiple accounts. Be sure to use the right accounts for the right activities, though, and don't confuse the account for online bill payments with the account for storing your long term savings.
Please visit our comparison page to compare savings and high interest accounts that include excellent services for online banking.
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