Having a savings account is essential once you start earning, as such a bank account can help you in securing your capital along with attractive interest rates.
From interest rates and cashback to reward points and all sorts of freebies and incentives, you benefit from everything if you have multiple bank accounts. Additionally, you get benefits in terms of budgeting and security. However, the more bank accounts you have, the more effective management strategy you need.
Along with numerous perks, the bank accounts also come with some basic extras like minimum balance requirement, direct debit, and more. Managing all these banking services and charges can put you off, but it is not as complex as it sounds. All you need to do is learn to operate the bank accounts in a way that you do not get overdrawn on one and miss out on the perks on another.
Keep reading to find out how you can operate multiple bank accounts simultaneously with all the banking services and features working out for you in the best possible way.
Here are a few useful tips to help you manage multiple bank accounts with great ease.
A spreadsheet or a budgeting app can help you track and manage your multiple bank accounts at the same time. They can help you pull information from multiple financial institutions in one place and enable you to view them all in one go.
Most financial experts suggest using a spreadsheet instead of a budgeting app. It is better to keep track of all your banking details and update them in a spreadsheet than just relying on a financial app to update your accounts. Though the process is lengthy and time-consuming, it has its own advantages.
First, updating your bank account yourself helps you keep track of all the financial activities, ensuring that you don’t overlook any of your bank accounts. And the other advantage is it helps you understand how many bank accounts you actually need, and you can get rid of the ones that are non-beneficial to you.
You must have a tight grip on your financial security. Make sure you keep unique credentials for each one of your bank accounts. Having a diverse collection of usernames and passwords can save your bank accounts against potential hackers.
Make sure you have a random assortment of numbers, symbols and upper and lower case characters in your banking passwords. Although such passwords could be hard to remember, they introduce an additional layer of security to your banking credentials.
You must not select the ‘remember password’ option while logging in using a browser. Instead, you can try using a reputable password management tool such as LastPass. These password managers are designed in a way that they reduce the risk of your bank account getting hacked. You can also consider using a two-factor authentication method to protect your banking information.
Opening multiple bank accounts is not all you need to do to implement a focused investment strategy. But to make it work, you need to keep all your bank accounts up and running. You can set up automated transfers and make regular transactions from each of your bank accounts to keep them active.
You must know how to manage your monthly fee and other charges, ensuring that the purpose of having multiple bank accounts gets fulfilled. Most banks in the UAE offer bank accounts with benefits like unlimited transactions, no monthly fee, etc. To avoid pesky fees and charges, you can also look for banks that offer no-fee bank accounts.
Online and mobile banking can be your best friends if you have multiple bank accounts. Most banks in the UAE offer online banking platforms that show all the bank account you have with that specific bank to help you keep track of your funds and financial activities.
In addition to the online banking portal, they offer a mobile app that you can install on your smartphone and have all the banking services right at your fingertips.
The ultimate purpose of having multiple bank accounts is to manage your finances appropriately while earning a good amount of interest. Make sure you go through all the basic requirements and fee structures before you open a bank account. Some banks apply hidden charges that may defeat the whole purpose of opening multiple bank accounts.
The best part is that opening or closing a bank account does not affect your credit score. So if you find it challenging to manage multiple bank accounts at any point in time, you can consider closing the extra ones.