Ask someone if they know how to open a new bank account, and they’ll more than likely tell you they do. However, if you ask someone if they know when they should open a new bank account, you’ll get a lot less positive answers. This is a problem, especially when you understand there’s a fine line between having enough bank accounts to efficiently manage your finances and having so many accounts you lose track of your money.

Fortunately, there are some guidelines you can follow when figuring out if you should be opening a new bank account or not.

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When you Move to a New Location

While many financial institutions have online banking and mobile apps that will let you access your accounts no matter where you are, you should still open a new bank account if you move to a new city or state. Brick and mortar banks have advantages that online banks don’t, such as being able to deposit cash and coins and being able to speak with a member advisor face to face.

You Want Better Interest Rates

Obviously, interest rates tend to change depending on what the Federal Reserve does, but some financial institutions do offer better interest rates than others. If you realize you can get a better interest rate on your loans, not to mention your savings and investment accounts, you should think seriously about opening up a new bank account at the institution that provides them.

You’re Paying Too Many Fees

Nothing eats away at your account balance like fees, including monthly fees, maintenance fees, ATM fees, and of course overdraft fees. If you discover that you’re constantly paying fees to a financial institution for the privilege of using your money, open up a new account with a financial institution with lower fees. Better yet, open up an account at a financial institution that eliminates some of those fees entirely.

When Your Current Financial Institution Doesn’t Have Something You Need

It’s rare to find a financial institution that has all the features you need to optimize your finances. If you find a financial institution offers something your current financial institution doesn’t, you can open up a new account to take advantage of that financial institution’s services.

For instance, if you like your current financial institution but you discover that another financial institution has a lower interest rate on auto loans, open up a new account at the financial institution so you can take advantage of the lower interest rate.

Open a New Account at First Alliance Credit Union

Opening up a new checking or savings account isn’t hard, but you should make sure you’re not opening accounts haphazardly. Make sure you’re getting a definite benefit when you open a new bank account, whether it’s because you’ve moved away from your previous financial institution, because you can get a better interest rate or just because you want to take advantage of a product your current financial institution doesn’t offer.

If you’re considering opening up a new bank account, become a member of First Alliance Credit Union today. We offer low fees on our checking and savings accounts, and you’ll be able to manage your finances no matter where you are thanks to our robust online banking platform and mobile app.