What are the pros and cons of opening up a few bank accounts? If I were to do it, should I be doing it under the same or different bank? - Seedly
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Anonymous

Asked on 25 Jun 2019

What are the pros and cons of opening up a few bank accounts? If I were to do it, should I be doing it under the same or different bank?

I have heard of some friends who have multiple bank accounts opened for various reasons. What is the main purpose in opening up a few savings account? As a uni student who will be starting full time work in the coming years, is it advisable?

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Elijah Lee
Elijah Lee
Top Contributor

Top Contributor (Jul)

Level 10. Unicorn
Updated on 28 Jun 2019

I put mine in separate banks. Part of the reason is the $75K deposit insurance limit. Another reason is to separate my expenses. I generally categorize my inflow in one account, ensure that account grows by a fixed amount (forced savings), and transfer the excess to my spending account with another bank. Also, I have an account that pays relatively decent interest with no requirements like salary crediting etc. That forms my war chest for investing during a crisis.

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Eva
Eva

28 Jun 2019

The deposit insurance limits apply to individual account or bank? Can share the account that pay decent interests with no requirements? So far, the accounts that pay decent interest all have requirements.
Elijah Lee
Elijah Lee

28 Jun 2019

Hi, the limits apply to the bank. So if you have 2 accounts with $40K each in one bank, the limit is still $75K.
Takingstock @
Takingstock @
Level 6. Master
Updated on 26 Jun 2019

Two bank accounts, one 360, and one Frank, both with OCBC.

All incomes and major transactions all go thru the 360, but there is no ATM access.

I transfer my monthly allowance from 360 to the Frank on 26th of each monthly (feels like pay day!!).

The Frank account is the only one that I can access with my atm card.

1) I love this arrangement because everytime I go to the atm, I see available balance and am reminded how much left there is and whether to tighten the belt a bit.

2) the giro deductions can easily clear from 360, with no insufficient balance and 10 charge for failed transaction.

3) easier for bank reconciliation and how where your monies is going mainly by reading the flows in 360, and not the miscellanous small charges.

4) better security I guess. Its rather tough to touch my money in the 360, without going thru online banking, and even if so, 80% of the funds are locked down in savings goals.

I used to want different banks for the two accounts, but I didnt feel it was a necessity. Besides when I do my qtrly balance sheets, I just need to login one bank. Also I consider if I have two much money in the bank, some of it must be not working hard enough. Invest the rest I say.

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Question Poster

26 Jun 2019

Yup, every bank should have this feature on their website/app! I think it makes a lot more sense to have it so you'll have a clearer idea of your savings and to curb excessive spending.
Takingstock @
Takingstock @

26 Jun 2019

I saw hsbc had a budget but not the same as savings goals. The other useful thing you may find on OCBC is the Money Insights. What it does is benchmark your data in ocbc with others in peer groups, like assets, liabilities, credit card spend categories, inflow and outflow. I actually changed my peer group to 40-49 years old, married and living in central to set higher targets.
YewFong Chua
YewFong Chua
Level 4. Prodigy
Answered on 26 Jun 2019

Two bank accounts OCBC 360 and OCBC 365. Normally I will use my OCBC 365 for my expenses to receive cashback while I spend.

While salary will credit to my OCBC 360 account to receive interest. On top of that, I created an CIMB account for my emergency fund to in case any financial crisis.

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered on 26 Jun 2019

I recently switched everything back to OCBC360 and my OCBC365 card.

  • OCBC360 (interest rate tiers are not that far off from DBS multiplier actually)

  • OCBC365 for spending (because I eat out quite abit and the cashback is pretty good 3-6%) However min spend is $800 so you have to take note of that!

It’s way easier to manage it under one roof. And I like how they break down the bonus interest easily for you monthly.

The only thing which I keep separately is my joint account with my other half which sits in a CIMB Fastsaver which gets us the easy 1% without having to do anything.

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 25 Jun 2019

I put all my money into one account, so that I can get the maximum amount of interest! :)

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