How many bank accounts you should have to keep things simple, according to a financial planner

Regardless of how many credit cards, kids, or houses you have, you can probably keep things simple with just two bank accounts.

Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

• Most people only need two bank accounts financial planner Brannon Lambert told HerMoney: A checking account and a savings account.
• You'll earn more interest with a high-yield savings account than a traditional savings account.
• You may consider opening additional accounts to help separate specific goals like travel.

 

The older you get, the more complicated your financial situation will likely become.

But regardless of how many credit cards, kids, or houses you have, it's best not to operate in excess when it comes to banking.

"I'm a fan of keeping things as simple as possible, regardless of the situation," Brannon Lambert, a certified financial planner at Canvasback Wealth Management, told HerMoney. "Little benefit is gained by making things more complicated to manage," he said.

See Insider's best high-yield savings accounts right now>>

How many bank accounts should I have?

Most people just need one checking account and one savings account, Lambert said. The money in the checking account should be used for expected monthly costs — think your rent or mortgage, groceries, and credit card payments.

"You don't want to keep your extra money in the checking account because it makes it too easy to spend," Lambert said. Even for those living paycheck-to-paycheck, it's important to set up a no-fee savings account to build up an emergency fund as soon as possible, he said.

For savings, Lambert recommends a money market account, which is a type of high-interest account that limits withdrawals to six times per statement cycle but may come with a debit card or check-writing capabilities.

A high-yield savings account is another good option. These types of accounts will keep your savings safe and accessible, while also helping them grow. Big online banks offer competitive interest rates that are significantly higher than a traditional savings account. 

Beyond the two must-have accounts, Lambert said, "You may utilize a third account if you want to segregate funds for a specific purpose like a down payment on a home or large purchase." Some financial planners who use this strategy call it "bucketing."

"By breaking them up into different accounts or buckets, you get to keep better track than if you lump all the money together," Luis Rosa, a financial planner who founded the financial-planning firm Build a Better Financial Future, previously told Insider.

Online banks like Ally make it easy to set up, label, and keep track of multiple accounts. After that, figure out how much you can afford to contribute to each goal and then set up automatic transfers from your paycheck or another, more general savings account, Rosa said.

Do too many bank accounts hurt your credit?

The sheer number of bank accounts you have doesn't hurt your credit. No activity from a checking or savings account shows up directly on your credit report or is reflected in your credit score. 

Banks use a different system, known as ChexSystems, to track overdrafts and other banking information.