I have a checking account, and a savings account. Both accounts are with the same bank for easy transfer between the two. Each account serves a purpose, and a role to keep my budget in line. By having these accounts, I am able to do what needs to be done.
The first account as mentioned is a checking account. This account supports checks which are rarely used. There is also a debit card which is used more often. This account pays my credit card which I use to pay my bills. This means that most of my bills do not have direct access to my checking account. This is to have some control if there were a discrepancy on my bill or expense. All of my direct deposits goes into this account.
The second account is a savings account. This account has $1,000 in it, and intended for emergencies. The definition of an emergency is an unexpected occurrence that needs to be addressed immediately.This is not a holiday, or birthday fund. It is not someone else’s emergency fund. It is intended for my emergencies only.
Both accounts generate interest, but not enough to get rich off of. At most, I will generate about $10/year in interest. This money is transferred to my checking account at the beginning of every year. I do not see the need for another account as I used to have a third account which was never used. Therefore, there has to be a compelling reason to open a new account.