Why I've Finally Been Consolidating My Bank Accounts Why I've Finally Been Consolidating My Bank Accounts
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Why I’ve Finally Been Consolidating My Bank Accounts

As I’ve mentioned many times over the years, I have far too many banking accounts. At this point, the number would probably be best described as “dozens” (although several of FinTech accounts I’ve tried have folded over time). However, in more recent months, I’ve found myself consolidating the number of places in which I keep my cash. While I’ve always maintained a few primary accounts amid my growing list of secondaries, those main few have only grown more prominent as of late.

So why the change? Well, there are a few reasons — ranging from the current market to pure convenience on my part.

3 Reasons Why I’m Using Fewer Bank Accounts

High APYs

A couple of years ago, when interest rates were in the dumps, one reason I actively utilized so many accounts was that some offered ways to earn at least a halfway decent APY. So, I’d do whatever I needed to in order to get those rates. But, since some had low balance caps for that APY, I’d also keep spreading my cash across similar offerings.

Well, now that APYs are pretty darn high across the board (too big to fail banks notwithstanding), I no longer feel the need to engage in such shenanigans. Instead, I’m more than fine keeping the bulk of my spare cash in two or three primary accounts earning near 4% APY. Honestly, even that number could be pared down if I wanted to since the banks I’m currently using most don’t have caps on their APY rates.

Lack of bonuses

When I first started reviewing FinTech apps, it seemed that they were giving out free money like candy. For opening an account and depositing $20, you might walk away with as much as a $200 bonus — not to mention some amazing features, such as ATM reimbursement, cashback on debit purchases, etc. Of course, once the venture capital funds were tapped out, these apps would overhaul their programs and basically nerf them. But at least those early adopters made off with some of that money!

Given the current state of things, it’s been a while since I’ve seen bonuses as generous as those. In fact, my most recent experience earning a banking bonus came from a “real” bank instead. So, with no need to chase these deals or go “all in” on a neobank just to be disappointed in a few months, I can keep my money in boring old accounts instead.

Quicker access

Finally, my last reason comes down to practicality. As I shared a few weeks ago, one of the reasons I don’t autopay my credit cards is because I often need to move money before I can pay off my balance. Well, after accidentally making a late card payment, I’ve continued reevaluating my strategy. In doing so, I found having to visit several different accounts and sending money back to my main ones is just a pain. Furthermore, as I’ve been consolidating, I’ve discovered that there are some accounts that make it pretty darn difficult (or at least annoying) to transfer funds. Thus, rather than end up in a situation where I need money and can’t access it, I’d rather just keep it in places that I know I can trust.

Even though I fully intended to retain my multiple banking accounts by keeping a few dollars in them and checking in on them for review purposes, my days of moving money far and wide are over for now. While it was fun pursuing bonuses and better rates, in today’s market, the juice isn’t worth the proverbial squeeze. Instead, I’m content keeping the bulk of my money in just a few easy-to-access accounts and simplifying my life in the process.


Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Money@30's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

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