How Many Bank Accounts Is Too Many – And Which One Should Be Your “Everyday” Bank?
Managing money across several banks can easily turn into a juggling act. A couple of accounts can be helpful and strategic; too many can make it hard to track your cash flow, remember passwords, and notice fraud or unexpected fees. The goal is not to have the fewest possible accounts, but to have *only the accounts that serve a clear purpose*.
You currently have:
– Truliant FCU – Checking, Money Market, and two savings accounts (your current everyday bank, but you’re considering closing it)
– SECU – Checking and savings
– Navy Federal – Checking and savings
– Ally – Joint checking and joint savings
– Wells Fargo – Checking only
Let’s break down what’s reasonable, what’s excessive, and how to choose one institution as your main everyday bank.
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How Many Bank Accounts Is “Too Many”?
There’s no universal number, but there *is* a point where extra accounts stop helping and start hurting.
Most people function well with:
– 1 primary checking account – For direct deposit, bills, card use, cash withdrawals
– 1-3 savings accounts – For emergency fund, short‑term goals, and sinking funds
– Optionally: 1-2 additional accounts – For joint finances, business use, or targeted savings
Beyond 4-6 total accounts, the complexity usually outweighs the benefits *unless* each one has a very specific, intentional use (for example, business banking, real estate, or advanced savings strategies).
Warning signs that you have too many:
– You can’t remember what each account is *for*
– Balances are scattered in small amounts you rarely touch
– You miss fees, overdrafts, or inactivity charges
– You hesitate to move banks because it feels like surgery
In your case, you’re at five institutions with over ten accounts. That’s more than needed for typical day‑to‑day banking and is likely adding friction without much extra value.
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Step 1: Decide What You Want Your Everyday Bank To Do
Before picking the best bank, define what “everyday bank” means for you. From what you described, your main needs are:
– Direct deposit for your income
– Bill payment (online bill pay, ACH, maybe checks)
– Debit card for daily purchases
– Reliable ATM access
– Solid mobile app
– Responsive customer service
Also consider:
– Branch vs. online: Do you routinely need cash deposits, cashier’s checks, or in‑person help?
– Fee structure: Any monthly maintenance fees, minimum balances, or ATM charges?
– Interest and perks: Not essential for checking, but nice if the account pays something or has rewards.
– Credit relationship: If you might want an auto loan, credit card, or mortgage, having a strong relationship with one institution can help.
Once you know your priorities, you can assess each bank through that lens.
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Step 2: Evaluate Each Institution You Use
You don’t have to ditch everything. The key is to promote one bank to “home base” and demote or close accounts that don’t add clear value.
Truliant Federal Credit Union
– Pros (typical for a credit union): Lower fees, member‑oriented, decent rates on loans and savings, usually good service.
– Cons: Branch/ATM network may be more limited; tech features may lag behind big banks or top online banks.
If Truliant’s mobile app, ATM access, and customer service are strong *for you* and it’s already set up as your everyday bank, it might still be a contender – unless their tech or locations frustrate you.
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State Employees’ Credit Union (SECU)
– Often strong on: Solid customer service, competitive loan rates, and stability.
– Potential drawbacks: App and digital experience can be more basic, depending on the region and system.
If you’re eligible for SECU, you likely get good credit products and member benefits. This could be a great “relationship” institution if you value service over cutting‑edge tech.
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Navy Federal Credit Union
– Known for:
– Good customer service
– Competitive rates on loans and savings
– Robust mobile app compared to many traditional credit unions
– Extensive ATM network and shared branching options
– Ideal for: People tied to the military community who want low fees and strong digital banking.
If you qualify and like their service, Navy Federal is one of the few credit unions that can realistically act like a full‑featured everyday bank *and* a long‑term home for loans and savings.
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Ally (Joint Accounts)
– Strengths:
– Online‑only, with strong mobile and web platforms
– Often better interest on savings and checking than brick‑and‑mortar banks
– Great for goal‑based saving (multiple savings buckets)
– Limitations:
– No physical branches
– Cash deposits are tricky (you’d need workarounds like money orders or other accounts)
Your Ally accounts are joint, meaning they’re really part of shared finances. Even if Ally is great, it may or may not be what you want as your personal everyday bank, depending on how you structure finances with the co‑owner.
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Wells Fargo (Checking Only)
– Pros: Very large branch and ATM network, reasonably capable app, widely accepted for direct deposit.
– Cons: More likely to charge monthly fees unless you meet certain conditions; historically mixed reputation on customer treatment and internal practices.
This account is likely there because of convenience at some point. If you don’t rely on the branch network, it may not justify staying open as your main account.
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Step 3: How Many of These Should You Actually Keep?
A practical, lower‑stress setup for you could look like this:
1. One primary everyday checking account
– Your main bank for income, bills, and spending.
– Choose *one* among Truliant, SECU, Navy Federal, or possibly Wells Fargo if you truly rely on branches.
2. One or two savings structures
– An emergency fund at your primary institution *or* at a separate high‑yield option (Ally or a similar online bank).
– Separate savings goals (vacation, car, annual bills) can be sub‑accounts rather than whole new banks.
3. Joint accounts kept for shared purposes only
– Keep the Ally joint accounts if they’re used actively for shared bills or savings with the other person.
– Treat them as a shared financial tool, not your main individual everyday bank.
4. Close or consolidate extras
– Extra savings and money market accounts at Truliant that don’t have a specific purpose.
– Any checking or savings at SECU or Navy Federal you don’t plan to use – unless you want to keep *one* credit union relationship for future loans.
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Which Bank Should Be Your Primary Everyday Bank?
If you were starting from scratch, a logical decision process would be:
1. If you value digital experience above all:
– Favor a bank or credit union with a top‑tier mobile app and smooth online bill pay. Among your current choices, Navy Federal and Ally are often stronger on digital than smaller local credit unions.
– Keep in mind: Ally is joint, and online‑only, so if you want a clear solo account with occasional in‑person support, it might not be ideal as your main personal checking.
2. If face‑to‑face service and loans matter most:
– A strong credit union (SECU or Navy Federal) is attractive as your everyday bank.
– You get low‑fee checking, reasonable ATM access, and a long‑term partner for car loans, credit cards, and mortgages.
3. If branch network is crucial:
– Wells Fargo gives very broad geographic coverage, which is useful if you move around a lot or frequently need physical services.
– But if you don’t need that many branches, a credit union with a shared ATM network may be enough.
Given your list of needs (direct deposit, bill pay, debit use, ATM, good app, solid service), a credit union with strong tech is often the sweet spot. For many people in a similar situation, Navy Federal or SECU ends up as the top choice, with:
– Everyday checking there
– A core savings account (including emergency fund)
– Additional goals saved at an online bank (like Ally) if you want higher interest
You could then:
– Use Navy Federal or SECU as your main everyday bank
– Keep Ally joint accounts strictly for shared finances
– Close Wells Fargo and extra Truliant accounts if they’re no longer needed
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Step 4: How to Simplify Without Chaos
Instead of closing everything at once, move in stages:
1. Pick your primary checking account
– Update direct deposit to that account.
– Move major bills and subscriptions there.
– Use only that debit card for day‑to‑day spending for a month.
2. Consolidate savings
– Decide where your main emergency fund will live.
– Transfer scattered balances from smaller or unused savings accounts to that one place.
– Give each remaining savings account a clear purpose.
3. Let old accounts go idle (temporarily)
– Leave a small balance in accounts you’re thinking of closing.
– Don’t close them immediately; wait 1-2 months to be sure no forgotten auto‑drafts hit.
4. Close unused accounts
– Once you’re sure everything is redirected, formally close the extra accounts.
– Keep proof of closure and final statements for your records.
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When It Makes Sense to Keep Multiple Banks
There *are* good reasons to maintain more than one institution, if done intentionally:
– Backup in case of outages: Rare, but having a secondary bank can help if your main bank’s systems go down.
– Separation of goals: Some people prefer keeping emergency savings at a different institution so they’re less tempted to tap it.
– Joint vs. individual finances: A joint account for shared expenses and a solo account for personal spending is often cleaner.
– Specialty products: You might prefer one institution for everyday banking, another for the best mortgage or auto loan, and a third for high‑interest savings.
The key is that each extra account must *earn its place* by providing a clear benefit.
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Additional Tips to Choose the Best Everyday Bank for You
When deciding between your credit unions and Wells Fargo, ask yourself:
– Which app do I actually enjoy using?
– Where are ATMs I’ll realistically use week to week?
– Which institution has treated me best when something went wrong?
– Where would I feel comfortable having my main emergency fund?
– Do I expect to need loans soon (car, home, personal)? If yes, where do I get the best rates and service?
If one bank or credit union scores highest across most of those questions, that’s your everyday bank.
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Final Practical Setup (Example)
A clean, simplified configuration for someone in your situation might look like:
– Primary Everyday Bank:
– Navy Federal *or* SECU checking (direct deposit, bills, debit)
– One main savings (emergency fund) at the same institution
– High‑Yield / Joint Savings:
– Ally joint accounts for shared goals and savings
– Closed:
– Wells Fargo checking (if not needed for branches)
– Extra Truliant accounts that have no special role
– Redundant savings at institutions you no longer use
This gives you clarity, easy tracking, and fewer passwords, while still maintaining flexibility and good service.
The exact choice of primary bank depends on your personal experience with each institution’s app, customer service, and location convenience. The important part is simplifying to a system you can manage effortlessly and trust for the long term.