Banking options used to be pretty limited. You picked a bank with a branch where you lived, and you probably used it for all your accounts.
Nowadays, you have a lot more options. If you don’t mind online banking, there are plenty of high-yield savings accounts paying as much as 5.31%. You can also find fee-free checking accounts, money market accounts, and any other type of bank account you’d like to open.
Many people end up with accounts at multiple banks. For example, a checking account at one bank and a savings account at another. While this works fine, there are advantages to keeping all your money with the same bank.
1. You can quickly transfer money between accounts
When you have accounts at multiple banks, it can take a few business days to transfer money between them. That’s often no big deal, but there are situations where it can be inconvenient.
Our Picks for the Best High-Yield Savings Accounts of 2024
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American Express® High Yield Savings 
APY 4.25%
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APY 4.25%
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Min. to earn $1 |
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CIT Platinum Savings 
APY 5.00% APY for balances of $5,000 or more
Min. to earn $100 to open account, $5,000 for max APY
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APY 5.00% APY for balances of $5,000 or more
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Min. to earn $100 to open account, $5,000 for max APY |
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UFB Portfolio Savings Account 
APY 5.15%
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APY 5.15%
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Min. to earn $0 |
Imagine you’re closing on a home, and you need to wire money for the down payment. But that money is in your online savings account, which doesn’t offer wire transfers. You need to get it to your checking account first to be able to wire it. When you’re eager to take the next step in your home purchase, waiting around for a bank transfer can be stressful.
If all your money is at the same bank, transfers are a breeze. Once you submit a transfer between your accounts, it happens immediately.
2. It’s easier to keep track of your money
Knowing how much money you have in the bank is important. It’s one of the ways to check how you’re doing financially. If you’re like most people, you probably have some savings goals you’re working toward, such as building an emergency fund or setting aside money for a big end-of-the-year vacation.
It’s nice when you can log into a single online account and see all your bank account balances. If you need to check multiple banks, it takes longer to log in everywhere and add up what you have in all your accounts.
3. You’ll have fewer tax forms to deal with
I’ve had quite a few bank accounts over the years, mainly to get bank account bonuses. The biggest headache, by far, has been entering the 1099 forms from each bank as I do my taxes.
Any interest you earn on a bank account is taxable income. The same is true with bank account bonuses. So, if you earned money from three different banks, you’ll most likely receive three 1099 forms. If all your earnings are with one bank, you’ll get one tax form.
4. It could help with credit card and loan applications
In addition to banking services, many banks also offer credit cards and loans. In most cases, anyone can apply for these, whether they have an account with that bank or not. But having an account could be beneficial for your application.
The bank will have a more complete picture of your finances compared to if it was just running a credit check on you. There are also rumors online that some card issuers are more likely to approve your application if you have a bank account with them. It can’t hurt, and if it helps you get approved for one of the top credit cards or a low interest loan, it’s well worth it.
There’s nothing wrong with having accounts at multiple banks if it works for you. But using the same bank for everything can make your life easier. Plenty of banks offer excellent checking accounts and high-yield savings accounts, so if you’d like to simplify your banking, you can get all the accounts you need in one place.
These savings accounts are FDIC insured and could earn you more than 10x your bank
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you more than 10x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.
