The rate of bank account ownership and debit card holdings has increased considerably during the last decade. During this time, the number of live debit cards has actually increased by 45%, peaking at around 100 million by the end of 2016.
We’re also seeing a rising number of people with multiple bank accounts and debit cards, which are often spread across various lenders.
This is a fascinating development, and one that betrays the numerous (but often overlooked) benefits of opening multiple bank accounts. We’ll consider these below, while asking why you should consider this as an option when managing your finances.
Separate your Savings from your Current Account
At the very least, most people tend to have at least one current account and a single savings account.
The reason for this is obvious; as it helps you to separate your cash and ensure that the capital committed to savings is not frittered away gradually over time.
Such an approach also ensures that you identify the very best accounts to help you achieve specific goals, without being confined in your choice or the range of options available.
More specifically, you can open a basic bank account through outlets such as Think Money, before seeking out a lender that offers targeted savings accounts with the best rates of return. This will enable you to control your spending and optimise your savings simultaneously, which is a winning combination by anyone’s standards.
Build Relationships with Several Banks
Even at the best of times, life is extremely unpredictable and we never really know what the immediate future holds for us.
This is yet another argument in favour opening multiple accounts with different providers, as this enables you to build relationships with various banks and provides far greater flexibility for your financial future.
So, should you ever need a loan or a mortgage in the future, you can present your case to each individual bank and seek out the most competitive offer possible.
This not only creates a scenario where you can compare different offers and use these as leverage, but it also creates a valuable safety net in case one or more lenders choose to turn your away.
Leverage Bank Specialties and Promotional Offers
It’s fair to say that not every bank has been created equal, with each boasting their own unique specialties and core advantages to customers.
Large, national banks tend to offer great credit cards, for example, while building societies have a great reputation for extending business loans to small and aspiring entrepreneurs.
By understanding the specific strengths and specialties of these banks, you can determine which offer the best long-term value to you as a customer.
At the same time, you can also capitalise on the very best promotional offers and savings rates, helping you to make the most of your capital at any given point in time.