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Too many bank accounts?

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sid33
Regular Contributor

Too many bank accounts?

Just a quick questions for the guru's.  Is it bad to have a several checking and savings account? I know when I go for a mortgage loan, I'll need to provide all the history on all the account. Did know If I should reduce the number of accounts. Here is my list.

 

NFCU - 2 Checking / 2-savings (one each for me and wife, but joint on each)

Local CU - 2 checking / 1 savings (was a primary bank until switch to NFCU. left open do to no NFCU branches locally, but now there are 2)

RBFCU - 1 checking / 1 savings (in a different town where we use to live)

Penfed - 1 savings (opened for possible benefits of other products)

DCU - 1 savings (opened for possible benefits of other products)

 

Any thoughts? Should I get rid of a few?

 

Thanks

 

edit for spelling

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: Too many bank accounts?

I can see your need for Penfed and DCU.  The one where you no longer live I would close.    We use multiple banks as follows:

 

joint savings/check and biz accounts with bank 2 doors down from our office. They have really strange rules about holds and on line deposits ie holds on almost every thing and on line deposits only if scores over 750.  Our scores are now above 750 but because they were not when we opened we can't use on line deposits.  Great place to cash a check and get docs notarized. We keep about $100  in each account no fees.

 

dw and main  biz accounts with a bank that is about 100 miles a way and has extended phone hours, a great on line banking and no fee. Free ach transfers and $15 wire out charges .  Our biz is several different corp/llp each one has seperate accounts and we can transfer between them.

 

My account is with an on line bank that has no fees and only use to pay my credit cards..  

 

All our accounts are on line statesments only.  We hardly ever use cash. The city , county, and electric company company will take credit cards but checks can be drawn only on a local bank; nothing out of the county.  

Message 2 of 9
Anonymous
Not applicable

Re: Too many bank accounts?

Hi Sid33.  I think you have posted this question in the wrong forum.  You are really interested in what prospective mortgage lenders would think if they saw your money spread out over several deposit accounts.  The mortgage lenders hang out in the mortgage forum.  I suggest you head over there and ask them.

Message 3 of 9
sid33
Regular Contributor

Re: Too many bank accounts?

This was more of a general question, but thanks, I’ll try the mortgage group as well.
Message 4 of 9
Anonymous
Not applicable

Re: Too many bank accounts?


@sid33 wrote:
This was more of a general question, but thanks, I’ll try the mortgage group as well.

@Anonymous wrote:

 

I know when I go for a mortgage loan, I'll need to provide all the history on all the account.

 

Can you clarify what other concerns outside getting a mortgage you have?  Your question was:

 

Is it bad to have a several checking and savings account?

 

Bad in what ways?  Bad for your FICO score?  Bad in some other way?

Message 5 of 9
Anonymous
Not applicable

Re: Too many bank accounts?


@sid33 wrote:

Just a quick questions for the guru's.  Is it bad to have a several checking and savings account? I know when I go for a mortgage loan, I'll need to provide all the history on all the account. Did know If I should reduce the number of accounts. Here is my list.

 

NFCU - 2 Checking / 2-savings (one each for me and wife, but joint on each)

Local CU - 2 checking / 1 savings (was a primary bank until switch to NFCU. left open do to no NFCU branches locally, but now there are 2)

RBFCU - 1 checking / 1 savings (in a different town where we use to live)

Penfed - 1 savings (opened for possible benefits of other products)

DCU - 1 savings (opened for possible benefits of other products)

 

Any thoughts? Should I get rid of a few?

 

Thanks

 

edit for spelling


It is not bad to have multiple checking and savings accounts. If you open too many checking accounts all at once it could prevent you from getting more, but it doesnt sounds like you have to worry about that. I wouldn't get rid of them. It might be more legwork to provide statements for 12 months on each account but if you have not been doing anything shady or moving money around a lot you should be fine.

 

These are all CU accounts and you need to maintain the share account at a minimum to stay a member of each one. I would stay put unless your mortgage broker tells you to close them which I have never heard of.

Message 6 of 9
longtimelurker
Epic Contributor

Re: Too many bank accounts?

Re mortgages:   I don't know if this is typical, but at my last refinance, the broker told me to submit only the bank account with the least amount of transactions.     His point is that in theory an UW can get nervous/suspicious about anything that appears, so limit it.   I had lots of other bank accounts but never got any question about them

Message 7 of 9
garagebandking
Regular Contributor

Re: Too many bank accounts?

I've always had a handful of bank accounts. Right now I have 6 off the top of my head (I check them every Monday).

 

When I went for my mortgage last year I had around 3 or 4, my lender told me to submit the statements for the accounts showing income I wanted considered for the mortgage (as far as showing income etc). So I only provided the statements for where my direct deposit was filed.

 

I wouldn't worry about having to explain accounts...you might have to explain inquiries (which may be related to the bank accounts)...I had to do that with my DCU account...all I said was "opened checking account". That was the only HP related to a checking/savings account on my report though.

 

How old are the accounts? If the HPs for opening the accounts aren't showing on your CR...I wouldn't worry about it.

Message 8 of 9
iced
Valued Contributor

Re: Too many bank accounts?

While it's not "bad" per se to have too many checking accounts, one really has to ask themselves why they need more than 1 or 2 to begin with. Are you writing checks/drawing money from 4 different accounts on a regular basis, or is this left over clutter from moving/previous relationships/bonus chasing/etc? If it's the former, then you're fine. If it's the latter, then it may be time to do some spring cleaning.

 

Savings are different in that you may be parking in multiple accounts to increase interest gains, though at 2017 rates this can also reach diminishing returns unless significant amounts are placed in savings.

Message 9 of 9
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