Today a topic came up about a person who has his money spread out across various banks. In some cases, he had about 5 different bank account plans with the same bank except it was with different branches. Of course, the first assumption we were thinking was that he had so many bank accounts as a way to hide his money from someone for whatever reason. In total though, it was mentioned that he had over 12 accounts.
One thing I have noticed before though is that some people actually create multiple accounts which are supposed to be designated for specific spending needs. Example, there is one person I knew who would literally put say $20 a week into this bank account with the sole purpose of using it to go to the movies. Seems kind of redundant as oppose to just say withdrawing the money from your main account when you need it huh?
For myself, I personally donâ€™t have special accounts when it comes to spending. The main times I would open a new account if it is a requirement for say some kind of registered investment plan or if I am trying to distinguish business and personal accounts. Example, I know a very common thing that most people do is open two accounts such as one is the regular savings and the other is the emergency funds.
I personally never saw the benefit in doing that as technically you could be earning more in interest by placing the funds together and simply just disciplining yourself not to overspend it Iâ€™d say.