Last weekend, while updating Quicken, I was struck by the complexity of our finances. Care to take a guess how many bank accounts we currently have?
Seven. Yes, seven.
Here’s the breakdown:
Â» One credit union account (PenFed for CDs)
Â» Two checking accounts (both local, personal + business)
Â» Four savings accounts (one local, three online)
This actually sounds more complex than it really is… The credit union account is essentially dormant, as it contains some five year CDs that don’t mature until next year. We actually bought these back in the midst of the interest rate doldrums of 2004 when PenFed was running a scorching hot 5.25% promo on five year CDs. It’s unclear what will happen to this account in the long run.
The two checking accounts are the bare minimum given our current situation. And while we don’t technically need a local savings account, we like keeping a bit of cash readily accessible, and the account that we have offers a decent interest rate. Not as high as an online savings account, but solid for a brick and mortar bank.
As far as the three online savings accounts go, we use one (ING Direct) for regular (longer term) savings, one (HSBC Direct) for “withholding” related to self-employment income, and the other one (Emigrant Direct) has been dormant since their rate fell below that of the competition.
So… That brings us to the question of the day…
How many bank accounts do you have?