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I only have one bank and one investment bank, but I have several accounts among the two institutions. Should I open other accounts as part of a diversification pattern? Is it advantageous to act on the good opening offers that many banks hand out, or just stay with one broker to simplify things? |
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I would say there is something to be said for having what I would term emergency funds in a seperate bank account, I say this because while everything you have at your existing banks maybe fdic insured, the fdic process can take time, time when you might need money but can't access it because the bank is in administration e.t.c. So the old proverb about not keeping all your eggs in one basket probably applies. |
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It depends on your goals. For instance if you like to trade stocks short term as well as keep a long term portfolio it is sometimes advantageous to use different brokers as their fee structures are so different. That being said, for most people as long as they're under the insured limits keeping money in only a couple different institutions is fine. I tend not to chase rates that often or take advantage of opening offers and then closing accounts as I really don't think it's worth the time or trouble. Some people are really good at this kind of thing but I've spent the last year trying to simplify and consolidate my finances and am much less stressed with that approach. |
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