Banks across the country are vying for your business, and while it’s a wise choice to have accounts from multiple lenders, there’s also a benefit to conducting most of your banking with one company.
Bank of America offers an array of financial products that are a great choice for banking smarter.
Additional banks have similar offerings, so this information will apply to an array of financial institutions. The larger banks tend to offer more flexibility, but you may be able to find local credit unions that also allow you to bank smarter.
Bank of America Offers Banking and Lending Simplicity
When banking under one bank, you’ll find that the key advantage is simplicity. You’ll be able to go to one bank for all of your problems. If you suffer from identity theft, you call one bank to make sure that all of your credit cards and lines of credit are frozen.
Starting out with one bank is good until the one-size-fits-all approach doesn’t work for you any longer.
Life circumstances will change the approach you take to banking, but to start, Bank of America is a great bank to use. Read any review of Bank of America and you’ll find that the lender offers an array of products:
- Auto loans
- Checking and savings accounts
- Credit cards
- Home equity lines of credit
When you choose one bank, you’re choosing to build a history with a lender. In the ideal situation, you’ll have all of your checking and savings accounts with Bank of America. As you save up enough money for your first home, you can take out a mortgage with the company.
The process is easier when the bank can see how much money comes into your account each month.
And when a furnace breaks or a major car repair is needed, you can also take out a home equity line of credit with the company. All of this is much easier and faster when you have a strong relationship with a lender.
If you plan on opening a business, you can also do all of your business banking at the same bank.
When Multiple Banks May Be Better
Banking at multiple banks is also an option, and while less simplified, there’s nothing wrong with banking at two, three or four banks. The one drawback is organization and making sure that the bank has funds available to spend.
If you have multiple accounts, you can confuse which account has a certain balance.
Multiple banks also have flexibility, and it will be easier to:
- Find better rates
- Save money on different products
- Spread money around for greater protection
Let’s assume that you have a high net worth, and if you keep $250,000 in one bank, you’ll be fully insured under the FDIC with most major banks. But if you have $400,000 in the account, that means that $150,000 of your money may be at risk.
It’s better to keep your money in multiple banks under this scenario. But if you’re the average person that wants to make banking easier, it may be beneficial to have checking, savings, loans and credit cards all administered by the same bank for simplicity.