Benefits of having multiple bank accounts

Posted by Felix Okoli on Friday June 27, 2014 at 9:18:55:

There are some people who have just a single bank account while there are others who prefer having multiple bank accounts.

Personally, I have more than one bank account and I've been thinking if I had any better advantages over someone who just have a single account. Well, yes I do.

If you are living in Nigeria, it may be wise to have more than just one bank account when you consider that even the banking industry most especially in this part of the world is not the safest. When you also recall the fact that some Nigerian banks had collapsed in the past (e.g. ACB, Savannah bank, Oceanic bank and others) it only makes sense not to put all your eggs in one basket.

Some benefits of having multiple bank accounts
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1. To get full insurance: Last time I checked, NDIC only insured up to N500k for individuals and N3m for companies. This means that in case the bank is shut down for business, savings account holders who have millions in their accounts might not be paid more than N500k since that is the only amount insured for the banks. It would have been better for them to simply spread their capital across multiple banks for full insurance cover.

2. Better service: Some banks are basically less efficient than others in terms of the service they render and how they render it. Some also have wider services while some have fewer services. Some delay customers while some are quick at offering service. Imagine going to a bank to deposit money only to spend 1 hr doing so. People would prefer going to a bank where they are sufficient cashiers to collect their deposits in as little as 5 minutes.
Some banks simply offer better services than others and that's why at times people prefer them. Some banks ask for a lot of documentation for a basic service while some just offer the service with little strings attached.

3. Variety of services: Some banks offer a limited number of services while others offer more services. Imagine if you can have a bank that could allow you to pay all your bills such as Pay TV, taxes, house rent, power bills, subscriptions and even invest in mortgage. If people are not able to get what they want in one bank, they are more likely to try out other banks.

4. To Compare: At times people just open multiple bank accounts in order to compare which of them better suits their lifestyle. If I didn't have a bank account with bank B, I might not have know that banking with bank A was more stressful. Personally, one of the reasons I love banking with bank B was because they accepted despots faster and there was little queuing time. The reason why I'm also banking with bank C now is because they offer higher interest rates on savings which bank A has not given me in 5 years. If you stay at one bank, you won't know what you are missing.

5. Varying interest rates: At times people also open multiple bank accounts just for the variation in the interest rates which they offer. It won't make sense to put all your money in one bank when another bank is offering a higher interest rate at a particular time. This is also the same scenario with interest rates on loans. People are at times forced to open accounts in other banks and maintain it if they know that the bank can offers them a better interest on loan when they need it unlike their old bank.

6. Easy access to your money: Some banks make it hard for people to collect their money even thought they might make it easy for them to deposit it. Most people don't like having to be waiting in the bank or ATM just to collect their money and this at times just pissed them off. At times you'd go to a bank and see a long queue of people just waiting for withdraw their money and yet there is only one bank staff serving them while there are multiple bank staff serving people who come to deposit at a much faster rate. People don't want to spend hours just to withdraw their money which they worked hard for and that can cause them to have multiple bank accounts.

7. Easy access to loans: Some banks, especially some of these old generation banks make it hard for people to get a loan even though the person has a good banking history with the bank and has been doing so for many years. They would be forced to open new accounts with new banks which make it easier to get a loan at a good interest any time they want. People don't generally like banking with banks that make it hard to get loans. If your bank is making it hard for you to get loans even though you have a good banking history, it's time to try out other banks.

Comments:

Re: Benefits of having multiple bank accounts Reply by Martins Ewos on Sunday August 3, 2014 at 20:25:10:

nice info. pls i wanna open account with first bank & get their naira mastercard. how do i go about it & how much will i need? Can i open with international passport?

Re: Benefits of having multiple bank accounts Reply by Felix Okoli on Sunday August 3, 2014 at 20:25:10:

You need at least N2000 to open an account and you should go with 2 passport sized photos, utility bill and your international passport.

Re: Benefits of having multiple bank accounts Reply by Dammy on Thursday September 4, 2014 at 9:8:14:

Nice tips.
Which bank gives the highest interest on Fixed deposit/Savings.
What's your take on Fidelity bank sir.

Re: Benefits of having multiple bank accounts Reply by Felix Okoli on Thursday September 4, 2014 at 9:8:14:

I have to be honest with you. The banks that normally give the highest interest rates are the ones need more capital and not the ones that already have enough money.

Benefits of having multiple bank accounts

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