Why Is It A Bad Idea To Have So Many.............

[secret storm]

Why is it a bad idea to have so many Bank Accounts with one Bank?

I have read that several times in the past on these forums of people that have said that its a mistake to use multiple Bank Accounts with one Bank?

I think that its a mistake to open so many Bank Accounts in the same day.

Myself along with personal friends and family have had very many opened with the same Bank and other Banks and were not having any problems with the Bank or the IRS thinking that we are laundering money.

Whats the most active Bank Accounts you guys have had at one time with one Bank?

I have had as many as 9 active Bank Accounts with 1 Bank.

[elmo]

The more accounts you open, the higher risk it appears to the bank. If you have a business bank account and have a legitimate use for many accounts, it shouldn't be a problem - but typically its better to open fewer checkings/savings at more banks, than more checking/savings at fewer banks.

[yotano211]

I like to also include some other types of accounts with that bank, like investment accounts, brokerage, or 401k, vacations saving accounts, and the typical business accounts.

Vacations saving accounts, I dont touch them. I might transfer $100 every few months or when ever. 401k I will max (yearly max allowed) that out for tax reasons.

[BigCJ]

because money laundering is still a very big issue.

[burke]

too many accounts will eventually get the bank to shut you down trust me ive been thru it a couple times

[rsot]

So many banks in the US - you can spread the accounts out

[yankee]

all the eggs in one basket.

What IF a problem occurred and the bank freezes your funds? or closes all your accounts?

If you have 3-6 accounts at ten banks, one bank having an issue is not crippling.

[vogeltron]

Just think about it logically. If you are bank especially if these are Personal Accounts which many stealth users on he do use. Why would anyone need 4 checking accounts and 5 savings accounts especially if they keep very small balances in them?

[munkron]

But realistically if you get audited, the IRS will see every single bank account that you have. It's not like big brother doesn't know you have XYZ bank accounts, and don't the credit reporting bureau's all see that? I think ideally you will need multiple EIN's.

[yankee]

Originally Posted by munkron

But realistically if you get audited, the IRS will see every single bank account that you have. It's not like big brother doesn't know you have XYZ bank accounts, and don't the credit reporting bureau's all see that? I think ideally you will need multiple EIN's.

1.)In the USA credit bureaus have nothing to do with bank accounts.
2.) What does Big Brother have to do with anything in the thread?

We are talking about banks not liking your activity and closing accounts.

[vogeltron]

Originally Posted by munkron

But realistically if you get audited, the IRS will see every single bank account that you have. It's not like big brother doesn't know you have XYZ bank accounts, and don't the credit reporting bureau's all see that? I think ideally you will need multiple EIN's.

Unofficially, and this goes against my own advice if you don't get the $10 in interest to get the tax form for the year. As far as I know they know nothing about you having a bank account with any bank. That is unless you do something dumb to get a SAR report filed.

[123]

I generally keep it to about 5-10 accounts per bank max, and I don't just open them all in one day

[rsot]

Originally Posted by brotwe

Whats the most active Bank Accounts you guys have had at one time with one Bank?

I have more than 40 right now. No problems so far..

40 at one bank you are saying?

[yotano211]

I go with my own general rule and max out at 5-6 accounts per bank or business name at the same bank.

I have 2 business names with a certain bank, I have 4 accounts with 1 name and 5 with the other name.

[secret storm]

Originally Posted by burke

too many accounts will eventually get the bank to shut you down trust me ive been thru it a couple times

How many Accounts have you had in the past at 1 Bank to get the Bank to shut you down?

Originally Posted by yankee

all the eggs in one basket.

What IF a problem occurred and the bank freezes your funds? or closes all your accounts?

If you have 3-6 accounts at ten banks, one bank having an issue is not crippling.

Yes i know. I use many different banks anyway.

So you have opened as many as 6 Accounts at 1 Bank and you have never had any problems from the Bank yankee?

How long of a time frame would you go between opening a new Account one right after another until you reach a total of 6 Accounts at a Bank?

Also do you open Accounts online or in person at the Bank?