Many people find no use for a second checking account because it will only mean another bank account to manage. However, there are several reasons that may be cause for reconsideration. 

A checking account generally serves as the command center for a person’s finances. Money goes in and out from wages to expenses, savings, and retirement.

The need for a second checking account is normally regarded as excessive and unnecessary. But for some, a second checking account can prove to be beneficial for their financial habits.


1. You want a backup checking account.

It is difficult to predict when something may render your primary checking account inaccessible. Maybe the bank had a technical error or you’ve become a victim of identity theft, which left your account frozen until the matters are resolved.

In that scenario, you’d feel financially handicapped. A second checking account would assure that you can remain current on all bills and expenses and that you can access cash immediately.

2. You want to earn interest on deposits.

The traditional bank account to save money and earn interest is a savings accounts, ideally one with a high interest yield. Federal rules limit the number of transactions in savings account to six per month.

Interest checking accounts from online banks such as ING Direct, Everbank, and FNBO Direct can deliver APYs that even beat high-yield savings accounts, while the funds are easily accessible. An interest checking account as a second checking account would make for a great emergency fund and back up checking account.

3. You want better perks.

If an advertised checking account has desirable features missing from your primary checking account, it may be worth opening that account (assuming you can handle the costs and fees, if any).

For example, your primary checking account is with Chase but the bank charges $2 for a withdrawal at a non-Chase ATM. If you tend to visit non-Chase ATMs, you can open an Ally Interest Checking account that refunds transaction fees at any ATM.

Or, if you use debit cards more than credit cards, you may opt to sign up for a Perkstreet Checking account with 2% cash back debit card rewards, which is becoming increasing scarce.

4. You want to withdraw more cash.

Depending on your checking account, you are limited to a maximum daily withdrawal limit that typically ranges from $500 to $1,000. For the average American, there is rarely an occasion when that isn’t enough cash. If you want to be able to withdraw more cash, a second checking account would extend cash withdrawal capacities.

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  • Ian Revereza

    I hold my primary SunTrust checking account but try to keep as much of my cash in my Ally checking to earn interest on it.

  • Bernadine T. Shea

    You have made some valid points. However, many Americans have problems with just
    one checking account. Two checking accounts is not for everyone…… I do have two
    and it does give me a little more piece of mind and flexibility. Thanks for reminding me. Bernadine T. Shea

  • Daron French

    I think its dumb for people to have multiply bank accounts. One checking and savings account is enough.

    • BooWendy

      I have 2 checking accounts and it helps me manage my money better. Whatever works best for someone.

      • Very interesting in hearing what your strategy is with 2 checking accounts!

  • Shantelle

    I think having a second checking account would be great for business transactions for security reasons and transferring funds over to your personal primary accounts while maintaining the maximum balance since it’s a cheaper alternative compared to a second savings, or a business account as the max. balance is a lot more at my bank. I thought about doing this for etsy when I open a shop, but still thinking about it yet. It would also be good for backup and emergencies. Nothing is a dumb idea when you have so many reasons to need a secondary account. Its being smart.

  • Melinda

    “Or, if you use debit cards more than credit cards, you may opt to sign
    up for a Perkstreet Checking account with 2% cash back debit card
    rewards, which is becoming increasing scarce.”

    I see that Simon Zhen, in this article dated DECEMBER 21, 2015; has recommended that people might want to consider opening a “Perkstreet” account – FYI to all: Perkstreet CLOSED the end of SEPTEMBER, 2013; and cheated most of its customers out of their 2% cash back debit rewards that it founded its online bank on. So, even if Perkstreet were still open, Simon, you would be setting your readers up for these swindlers and con artists. Please, please do your homework about these banks before posting false information for all the world to read!