any benefit to combining bank accounts?

KellyJef · #1 (**permalink**) 10-16-2006, 04:47 PM

I think I'm having a senior moment because I might be asking a dumb question

Is there any benefit to combining two separate HSBC online accounts?

In other words, if one account has $40,000 and the other has $20,000, isn't the total interest earned exactly the same whether they are from one combined account or two separate accounts.

A friend whose financial advice I usually respect is trying to convince me that more interest would be earned from one larger account.

But that doesn't make sense to me.

Who's right?

sweeps · #2 (**permalink**) 10-16-2006, 04:54 PM

You're right -- at HSBC at least. Some banks have tiers that offer different rates, in that case it could benefit you to consolidate accounts. Also it may just be easier to keep track of, but other than that, I don't see any benefit of consolidating.

tmango · #3 (**permalink**) 10-16-2006, 05:35 PM

Quote:

Originally Posted by KellyJef

I think I'm having a senior moment because I might be asking a dumb question

Who's right?

This happens to me all the time.. I know the answer is obvious (that the interest is exactly the same), but I always end up doubting myself. But your instincts are correct.

disneysteve · #4 (**permalink**) 10-16-2006, 05:35 PM

Quote:

Originally Posted by Sweepsplayer

You're right -- at HSBC at least. Some banks have tiers that offer different rates, in that case it could benefit you to consolidate accounts. Also it may just be easier to keep track of, but other than that, I don't see any benefit of consolidating.

I just wanted to agree. Sweeps is correct, as are you. There is no financial benefit to combining the accounts.

Broken Arrow · #5 (**permalink**) 10-16-2006, 07:13 PM

Well, there's no benefit... but is there any reason NOT to? I mean, if I had two HSBC accounts, and they're both paying the same... I don't see why not. It just seem like six in one, half a dozen in the other to me. That is, it's up your individual preferences, right?

KellyJef · #6 (**permalink**) 10-17-2006, 09:55 AM

Quote:

Originally Posted by Broken Arrow

Well, there's no benefit... but is there any reason NOT to? I mean, if I had two HSBC accounts, and they're both paying the same...

Sorry, I should have explained in my original post that it's my DD who has the $40,000 account and her fiance, Luke, who has the $20,000 account.

So I really thought it would be better for them to keep separate accounts for now == as long as they weren't losing any interest from combining accounts. When they go to apply for their mortgage next year, I think it would be beneficial for Luke to have some savings of his own.

sweeps · #7 (**permalink**) 10-17-2006, 10:00 AM

Ah, yes, then definitely keep the accounts separate. One, I wouldn't mingle assets until they've officially tied the knot. Two, it makes for tax headaches if their savings are combined because they still must claim their own interest on their taxes.

KellyJef · #8 (**permalink**) 10-17-2006, 10:27 AM

Quote:

Originally Posted by Sweepsplayer

Two, it makes for tax headaches if their savings are combined because they still must claim their own interest on their taxes.

I didn't even think about the taxes -- thanks.

Broken Arrow · #9 (**permalink**) 10-17-2006, 01:54 PM

Yes, in light of these new details, I too would keep them separate.