The Risk of Sticking to One Bank — and the Best Banks for Dividing Your Funds
Written by
Laura Bogart
Edited by
Kristen Mae
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For many people, their first exposure to saving money involves dropping quarters in a piggy bank. It makes sense, then, that many view their bank account as a place to park their money until they need it.
But as banking becomes increasingly reliant on technology, the potential for disruption grows. What if there’s a glitch that prevents you from making a deposit or withdrawal? What if access to your funds is delayed, causing you to miss bill payments and rack up penalties? What if a fraudster gains access to your account?
These are all concerns that Nadia Vanderhall, a personal finance expert and marketer, raised in a LinkedIn post reflecting on the woes of service disruption with banks. Her solution? Avoid sticking to just one bank. Or, as she phrased it, “Split your money like kids that fight!”
But how do you go about splitting up your money? Your best place to start is GOBankingRates’ list of Best Banks.
A Bank for Everyday Expenses
Vanderhall recommends starting with no more than three banks. The first should be a bank for handling bills and other everyday expenses. Generally speaking, that means a checking account. However, not all checking accounts are created equal, with some offering terrific perks oriented toward specific groups of consumers, like students, retirees, or families with joint checking accounts.
GOBankingRates’ Best Checking Accounts list highlights standout options, including:
- American Express® Rewards Checking: Best for earning membership rewards points
- Axos Bank® Rewards Checking: Best for frequent credit card users
- Connexus Credit Union® Xtraordinary Checking: Best for avoiding minimum deposit and monthly fees
If overdraft protection is a priority, consider the Discover® Bank Cashback Debit Account, which ranked highest for this feature. Those who rely on mobile or online banking should look into the SoFi® checking and savings accounts. For people who are hunting for discounts on new loans and cards, Upgrade Rewards Checking Plus is a strong contender.
Choose the account that best meets your specific needs and preferences, but know that having one to manage the ins and outs (hopefully more ins than outs) of your daily transactions is essential.
A Bank for Saving
Like any financial advisor worth their salt, Vanderhall emphasizes the importance of having a savings account to build an emergency fund and keep your money safe.
GOBankingRates has a list of the top savings accounts that don’t require a minimum deposit, but still make it easy to access your money, and with competitive APYs.
- MySavingsDirect MySavings Account: Top U.S. rate for all balances, even beating some CD rates
- Synchrony Bank®: Offers its own ATM card for convenient cash withdrawals and point-of-sale purchases
- Discover Bank® Online Savings: Highly rated for exceptional customer service
A Bank for Growing Your Savings
Saving your money is good. Growing your savings is even better. That’s why Vanderhall advises choosing a third bank with a high-yield savings account with competitive yields.
GOBankingRates highlighted the following top-rated high-yield savings accounts:
- EverBank®: Low monthly fees, no overdraft fees, and one of the highest APYs around
- Bask Bank®: Best for ease of online banking
- Jenius Bank®: Low monthly fees and competitive APY
Finding the best banks to suit your needs might seem daunting, but it doesn’t have to be. By spreading your money across accounts for everyday expenses, emergency savings, and growth, you can protect your finances and set yourself up for greater stability. If you’re not sure where to start, GOBankingRates’ Best Banks ranking breaks down top picks to help you find accounts that fit your unique needs and feel more confident about managing your money.
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