Survey: 50 percent of Americans are cheating on their banks
When it comes to banking, do you prefer to be loyal or play the field? In other words, do you keep all of your money at just one bank or spread across accounts at several banks? Either way, there are pros and cons.
To find out whether having multiple bank accounts is commonplace or rare, GOBankingRates surveyed more than 2,000 people across the U.S. We asked them how many banks with which they have active checking, savings, CD or money market accounts.
Then, we explored why people have multiple accounts by asking, “What is the primary reason you have active bank accounts at multiple banks?” Respondents could choose from the following answers:
Different services/products offered, flexibility/convenience, lower fees, want finances separated or spread out, or have high account balances.
The survey found an even split between Americans who are loyal to their banks and those who spread their money across accounts in multiple banks. The survey found that 50 percent of Americans have accounts at just one bank, while the other half have accounts at multiple banks.
Among those with accounts at more than one bank, the most common number of financial institutions with which they have active accounts is two, with 28 percent choosing this response. The next most common response is three.
However, Americans with multiple accounts are more likely to have accounts at five or more banks than at four. The survey found that 7 percent have accounts at five or more banks, compared with 4 percent with accounts at four.
Young millennials ages 18 to 24 are more likely than other generations to keep their money in just one bank rather than spread out over several institutions. About 58 percent of this age group said they have accounts at just one bank, followed by 52 percent of those ages 25 to 34 and 55 to 64.
Women are also more likely to be loyal to their banks, with 53 percent saying that they have accounts with just one bank compared with 47 percent of men. And just 4 percent of women said they have accounts at five or more banks, compared with 8 percent of men.
Another GOBankingRates survey found that young millennials and women were more likely than their counterparts to have no money in savings accounts. This might explain why they’re less likely to have multiple bank accounts.
Older Gen Xers ages 45 to 54, on the other hand, are least likely to be loyal to their financial institution. Fifty-five percent said they have accounts at more than one bank. Nearly 9 percent said they have accounts with five or more banks — the highest percentage of any age group.
The survey found that the most common reason people have accounts at multiple banks is flexibility and convenience, with 31 percent choosing this answer. The second most common reason given was to take advantage of the different services and products offered at other financial institutions.
After convenience and product offerings, lower fees were the third-most common reason respondents gave for having accounts at multiple banks — followed closely by wanting to have their finances spread out. Having high account balances was the least common reason given for having multiple bank accounts.
Millennials appear to be more influenced by fees than other generations when choosing banks. Lower fees were the most common reason younger millennials ages 18 to 24 gave for having accounts at more than one bank.
A big drawback to having multiple accounts can be fees. There are banks that offer free checking with no minimum balance requirements. But they likely have other fees — such as insufficient funds fees — if you write a check that bounces or overdraft fee if you choose to let the bank cover withdrawals or purchases when you don’t have enough money in your account. If you have multiple accounts, you’ll have more balances to keep tabs on so you don’t end up overdrawn.