Multiple accounts with different banks

[gx240]

I currently have a checking account with a debit card and a savings account with a local bank. Is it ok for me to open a new checking or savings account with a different bank without closing the old one? Would one bank be aware that I have an account with another bank? Could I get a second debit card with a different bank if I opened a checking account with them? Are there any negative effects from having multiple accounts with different banks?

[Ima saver]

I have a different account with every bank in my town. I like to spread the money around!

[humandraydel]

You can have as many accounts as you want. The only negative thing about having lots of accounts is that it increases your chances of identity theft.

[gx240]

Thank you for the responses. Does it alter your credit rating in any way?

[sweeps]

Checking and savings accounts normally have no effect (positive or negative) on your credit.

A few exceptions: If you open an account at a bank that does a "hard pull" on your credit, the inquiry is shown on your credit report. A large number of inquiries in a short time is a red flag for creditors. Also if you open an account that has an overdraft-to-loan feature, the loan part would be reported on your credit report as other loans would be.

[Ima saver]

Why would a bank do a hard pull on your credit if you are just opening a savings, money market or certificate of deposit?

[kv968]

Why would a bank do a hard pull on your credit if you are just opening a savings, money market or certificate of deposit?

For identity purposes. To make sure you are you

[krayziebone33]

I have a different question - what is the advantage to having more than one checking?

[cptacek]

I have a different question - what is the advantage to having more than one checking?

I have three checking accounts.

One is a business account, and both my business partners (er, my mom and dad) and I can write checks on that account.

One is an account that I direct deposit some money in to pay two specific bills, my 0% till 2010 credit card and my student loan. These amounts never vary, they have to be on time, and there has to be money in the account for them to be paid.

One is my general everyday checking account. Out of here comes everything else.

I got the second account because at the time, my credit union didn't have automatic bill pay. They do now, but I like having that money seperate...I can forcast when things are coming in and coming out. I would do that with my mortgage, too, but I have to actually write them a letter (horrors!) to get that switched, and I haven't gotten around to it.

At one time, in my previous house, I had a checking account associated with the bank that held my mortgage. I had direct deposit and direct withdrawal, and so I never even thought about that bill.

I keep track of my expenses and bills with an excell spreadsheet. I just added another sheet for the different accounts, and it is no more hassle than just having one...for me it makes things easier.

[Gruntina]

Why would a bank do a hard pull on your credit if you are just opening a savings, money market or certificate of deposit?

A lot of this was enforced strictly due to terrorist attacks such as 9/11. It’s to track to see if people are smuggling money into the country or unusual account activities. So you’re basically giving proof of who you are for safety reasons for both the bank and yourself.

[jamai]

i don't see why that would be a problem, you might say you feel safer by having your money in multiple places.

[skibo]

I have three checking accounts.

Same here. I had three 'lumps' of money in the same account, and kept track of the three balances in a spread-sheet, but I suspected that the big account balance wasn't giving my wife the feedback she needed as the month wore on. I mean, she had no way of knowing when all of that month's 'spending money' was gone.

Now I have 1 account for our normal expenses, 1 for child care expenses and one for short term savings. This makes it more obvious when the month's discretionary $ is getting low.

[Aleta]

My husband pulled his credit report the other night and we noticed that INGDirect checked his credit. I don't like that and I was surprized that ING did that. There are too many people that have too much access to our private information. I think that they should have to have our permission and a reason for going into our credit report or anyother thing for that matter. I heard the other day on the network that if the insitution that you're dealing with isn't financial where it has reporting of income from you or to you that you don't need to give out your social security number. The hospitals and doctors ask for it all the time. I worked in an emergency room and when someone didn't have a social security number, we gave them a pseudo one. So you can refuse to give it.

[disneysteve]

My husband pulled his credit report the other night and we noticed that INGDirect checked his credit.

Was that for a savings account or a checking account? Banks will definitely check credit when opening a checking account. I guess some may do it for savings also.

[Aleta]

It was for the savings account that we have here on savingsadvice. I just don't see the point in it. I also noticed that the cellphone carriers keep a watch on you too. We pay our bills on time and in full every month. It's not like we are a risk.