Multiple bank relationships

[Jeffster1]

OK....this may be a dumb question, or at least a matter of preference, but here goes:

I received my DC from my Chaoter 13 in January 2021, and quickly set out to rebuild. I learned a lot of sobering lessons with the BK, which was a place I never thighht I'd be after many years of perfect credit. Pay cuts; 2 expensive moves in a short period; and simply not paying attention to growing balances led me to where I found myself in 2017. 

I know from my reading on here that many banks and credit unions are relationship-driven. For that reason, I opened several accounts over the last year, with an eye to establishing a relationship with them for their credit products.

I already had a long history with Bank of America and Wells Fargo. Unfortunately, I included my WF CC in my BK, so credit products with them are out, and I hear they have a long memory. My history with Bank of America is excellent as I didn't have any credit products with them. Soon after my DC, I opened checking and savings at TD Bank. Following advice from people on here, I opened accounts at Los Angeles Federal Credit Union and Kinecta Credt Union.  Earlier this year, I opened checking and savings at BMO Harris (as they are merging with Bank of the West and I am hoping that my earlier bad service experience with BOTW would change with the merger). I also opened checking and savings with USBank and was just approved for their Secured Visa. 

I know I am probably insane, but is this overkill? Due to a large increase in salary since DC, I have saved up quite of bit amount of money, and already had a sizable 401K. There is also the possibility of an inheritance down the road. (I would prefer the family member live forever, though). My thought was that establishing a relationship with multiple banks would not only help me with future credit but give me investment options for the future, 

I already have one credit card each at BofA; TD and USBank. Do I dump one or two of the others to consolidate and simplify? Quite frankly, I'd love to dump WF, BUT I've had the account since I was a mere kid (it was First Interstate at the time), and I'm feeling some nostalgia PLUS they were kind enough not to close or freeze my checking or savings there even though I included my WF CC in my 13. 

Thus  may just be a stupid question, and a matter of preference, but is there any validity to my original way of thinking about having multiple relationships? All opinions are welcome. 

[cashorcharge]

While having a relationship with an FI may give you some leverage, it will not totally negate the past or a poor score or underwriting rules they may have. Though it sounds like your on the right track. 

Sure, you don't need all those bank accounts...keep it simple. Since you've already gotten some credit, perhaps add to that with a secured card with some of that savings at LAFCU or Kinecta. Not sure if they offer but wouldn't hurt. 

[SouthJamaica]

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@Jeffster1 wrote:

OK....this may be a dumb question, or at least a matter of preference, but here goes:

I received my DC from my Chaoter 13 in January 2021, and quickly set out to rebuild. I learned a lot of sobering lessons with the BK, which was a place I never thighht I'd be after many years of perfect credit. Pay cuts; 2 expensive moves in a short period; and simply not paying attention to growing balances led me to where I found myself in 2017. 

I know from my reading on here that many banks and credit unions are relationship-driven. For that reason, I opened several accounts over the last year, with an eye to establishing a relationship with them for their credit products.

I already had a long history with Bank of America and Wells Fargo. Unfortunately, I included my WF CC in my BK, so credit products with them are out, and I hear they have a long memory. My history with Bank of America is excellent as I didn't have any credit products with them. Soon after my DC, I opened checking and savings at TD Bank. Following advice from people on here, I opened accounts at Los Angeles Federal Credit Union and Kinecta Credt Union.  Earlier this year, I opened checking and savings at BMO Harris (as they are merging with Bank of the West and I am hoping that my earlier bad service experience with BOTW would change with the merger). I also opened checking and savings with USBank and was just approved for their Secured Visa. 

I know I am probably insane, but is this overkill? Due to a large increase in salary since DC, I have saved up quite of bit amount of money, and already had a sizable 401K. There is also the possibility of an inheritance down the road. (I would prefer the family member live forever, though). My thought was that establishing a relationship with multiple banks would not only help me with future credit but give me investment options for the future, 

I already have one credit card each at BofA; TD and USBank. Do I dump one or two of the others to consolidate and simplify? Quite frankly, I'd love to dump WF, BUT I've had the account since I was a mere kid (it was First Interstate at the time), and I'm feeling some nostalgia PLUS they were kind enough not to close or freeze my checking or savings there even though I included my WF CC in my 13. 

Thus  may just be a stupid question, and a matter of preference, but is there any validity to my original way of thinking about having multiple relationships? All opinions are welcome. 

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Having savings and checking accounts that you don't need isn't going to kill you. Just be sure you don't get hit with maintenance fees.

[Credit12Fico]

Some banks won't think twice about hitting you with a fee and refusing to reverse it as a goodwill gesture (I'm looking you Bank of America).

There's no loyalty in this business. Take what you need, and drop the lenders who waste your time. 

[tcbofade]

I'm a fan of having multiple banking relationships open and operating and used as needed.

I've got a small local bank that I use as my primary fi, but also have checking, savings, and various credit products with a local CU, NFCU, PenFed, DCU etc.

Heaven forbid one FI has a technical issue, I can use another.

It also helps when rate shopping for whatever product you need next.

Every one is different and I'm not sure that there is a correct answer here, but I'm all for diversity!

Good luck!

[iced]

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@Jeffster1 wrote:

OK....this may be a dumb question, or at least a matter of preference, but here goes:

I received my DC from my Chaoter 13 in January 2021, and quickly set out to rebuild. I learned a lot of sobering lessons with the BK, which was a place I never thighht I'd be after many years of perfect credit. Pay cuts; 2 expensive moves in a short period; and simply not paying attention to growing balances led me to where I found myself in 2017. 

I know from my reading on here that many banks and credit unions are relationship-driven. For that reason, I opened several accounts over the last year, with an eye to establishing a relationship with them for their credit products.

I already had a long history with Bank of America and Wells Fargo. Unfortunately, I included my WF CC in my BK, so credit products with them are out, and I hear they have a long memory. My history with Bank of America is excellent as I didn't have any credit products with them. Soon after my DC, I opened checking and savings at TD Bank. Following advice from people on here, I opened accounts at Los Angeles Federal Credit Union and Kinecta Credt Union.  Earlier this year, I opened checking and savings at BMO Harris (as they are merging with Bank of the West and I am hoping that my earlier bad service experience with BOTW would change with the merger). I also opened checking and savings with USBank and was just approved for their Secured Visa. 

I know I am probably insane, but is this overkill? Due to a large increase in salary since DC, I have saved up quite of bit amount of money, and already had a sizable 401K. There is also the possibility of an inheritance down the road. (I would prefer the family member live forever, though). My thought was that establishing a relationship with multiple banks would not only help me with future credit but give me investment options for the future, 

I already have one credit card each at BofA; TD and USBank. Do I dump one or two of the others to consolidate and simplify? Quite frankly, I'd love to dump WF, BUT I've had the account since I was a mere kid (it was First Interstate at the time), and I'm feeling some nostalgia PLUS they were kind enough not to close or freeze my checking or savings there even though I included my WF CC in my 13. 

Thus  may just be a stupid question, and a matter of preference, but is there any validity to my original way of thinking about having multiple relationships? All opinions are welcome. 

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It's not clear what you're looking for out of these relationships. Without knowing that, whether or not to bank with a particular institution is nothing more than personal preference.

If you're just soliciting opinions, I don't really see the point in having a relationship with multiple banks for its own sake. If opening three accounts with three different banks best serves my banking needs, I'll have 3 accounts; if I only need one account to serve those needs, I'll only open one.

[AndySoCal]

I have three banking relationships my primary bank which is Discover Discover only has one branch and it is on the east coast. I live on the west coast. I have a local credit union (Logix) as well it has come in handy when I need to deposit a check. I also have another credit union who has  good certificate of deposit rates.  If you want or need multiple financial relationships with checking and or savings you have a reason for those accounts. I have credit card relationships with other banks see my siggy and that is all it ever will be. As I have posted elsewhere on the forum, I like banks or credit unions with low fees and good savings rates most of those my siggy do not have good savings rates and or too many fees.  If you want goto Discover.com and look at their checking and savings rate and compare to other banks or credit unions.