If you have several bank, investment, and other financial accounts in your name, you might consider consolidating some of them to make things easier. Having multiple accounts requires you to spend more time tracking and reconciling financial activities and can make it harder to keep a handle on how much you have and whether your money is being invested advantageously.

Start by identifying the financial accounts that offer you the best combination of excellent customer service, convenience, lower fees, and higher returns. Hold on to these and consider closing the rest, keeping in mind the bank account amounts you’ll be consolidating. The Federal Deposit Insurance Corporation generally insures $250,000 per depositor, per insured bank. So if consolidation means that your balance might exceed that amount, it’s more advantageous to keep multiple accounts. Another important tip to remember when consolidating accounts is that you should keep accounts that have different beneficiaries assigned, separate.

When closing accounts, make sure you discontinue automatic payments or deposits and roll those over to the remaining accounts.  You’ll also want to be sure to destroy checks and cards associated with the accounts you close. To prevent any future disputes, obtain letters from the financial institutions stating that your accounts have been closed and keep them with your other important financial documents. Remember that closing an account generally takes several weeks.

If you need assistance reviewing your accounts and evaluating which ones might be worth consolidating, please contact your Untracht Early advisor.

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