Can You Have Student Accounts at Multiple Banks? Pros and Cons to Consider
Student bank accounts are known for their low monthly fees and flexible features.
Many student accounts offer special incentives for new account holders to entice students. These offers may include cash bonuses, free pizza and more.
You may wonder if you can open multiple student accounts to take advantage of as many of these incentives as possible. The answer is yes. While there’s no limit to how many accounts you can open, the administrative burden of juggling several accounts may outweigh the benefits you receive.
Before opening any bank account, think about how you’ll use it and what features will help support your financial goals. This way, you ensure any account you choose will work within your overall financial strategy.
Find an awesome student bank account today.
Compare accounts with the features and perks you need to handle life as a student.
Can you have multiple student accounts?
Opening multiple student accounts at the same bank may not be allowed. However, there’s no reason why you can’t open additional student accounts at separate banks.
Generally, as long as you meet the requirements, financial institutions won’t care how many other accounts you have at other banks.
Should you open multiple student accounts?
Just because you can doesn’t always mean you should. Before opening multiple student accounts, consider how they’ll help you meet your financial goals.
Pros
Take advantage of promotional offers. Many banks offer cash bonuses and other offers for new student account holders. Opening multiple student accounts could enable you to receive these benefits from several institutions. But don’t forget to read the fine print. Usually, you must meet specific criteria to claim the benefit, such as setting up automated bill payments or sending a certain number of e-transfers.
Use different accounts for different financial goals. Stashing extra money in a separate financial institution can be an excellent way to save for different financial goals. Keeping your savings out of sight reduces the temptation to draw from them unnecessarily. However, a student account may not be the best savings vehicle if this is your goal, due to lower interest rates. You may be better off using a high-interest savings account or a tax-free savings account to capitalize on higher interest rates or invest in the stock market.
You’ll have a backup account for emergencies. If your debit card is ever lost or compromised, having a backup account ensures access to some money while you await a replacement card.
Cons
More to keep track of. Managing multiple bank accounts at separate institutions could become an administrative burden. You may struggle to track where your funds are going each month and how best to manage your accounts.
Surprise fees. In some cases, failing to meet specific criteria (such as maintaining a minimum balance) could lead to paying extra fees. Most student accounts begin charging fees once your student status expires, so it’s crucial to be aware of this and plan how these fees will affect your finances after graduation.
Harder to see your cash flow. What’s more, if, like many students, you’re operating on a tight budget, spreading your money across multiple bank accounts may make you feel more cash-strapped than you genuinely are. Until you join the workforce, using one main bank account could give you a better picture of your total finances.
Advantages and disadvantages of banking at just one institution
Using a single bank to manage your finances simplifies your daily banking by reducing the number of logins, cards and statements you need to keep track of.
You can open multiple accounts to suit your needs (for example, chequing, savings and retirement) and see all of them at a glance.
Moving money between accounts held within the same bank is also easier. Often, money transfers are instantaneous, making it easy to see exactly what your current balance is.
While you may not be able to capitalize on new account holder incentives for each account, maintaining an ongoing relationship with a single financial institution could be more valuable in the long run. Some banks may offer benefits to long-term customers with accounts in good standing, such as more favourable interest rates, access to better credit cards and more.
That said, sticking to a single financial institution won’t be right for every person. It’s wise to watch for incentives and account features at other institutions that will help you hit your long-term financial goals.
Sometimes, your primary bank may be limited in what they offer (especially if you work with an online bank or credit union). In these cases, opening an account in another institution could allow you to access specialized benefits such as international money transfers or self-managed investment accounts.
Final considerations and tips
Before opening multiple student accounts, reflect on your financial habits and goals.
Ask yourself whether you can effectively manage multiple accounts while meeting the requirements to maintain your student account benefits.
Consider your long-term goals and which bank accounts will best help you reach them. There are many different bank accounts designed to support specific endeavours, such as saving for long-term expenses, investing, retirement savings and more.
Don’t be seduced by introductory offers; consider the overall features of each account before you open one.
DIVE EVEN DEEPER
Janine DeVault
Siddhi Bagwe