I used to keep all my money with one bank. I recently opened an account with another bank and have slowly been transitioning towards them. I have multiple jobs and sources of income. Now when someone asks for my banking information, I give them the new bank or I deposit checks in the new bank. I still have a larger checking and savings account in my original bank, I haven't transferred any money between the two.
The new bank is an online bank and has no/lower fees. Also their interest rate is a lot higher. The original bank is traditional, established and has lots of branches. I'd like to keep it because it's easier to withdraw and deposit cash (and coins you have to see a teller).
What are the benefits and drawbacks to having accounts with different banks? Is it good or bad to have my wealth split between two banks? Is there anything I should keep in mind? For example, with my old bank I don't pay service charges if I keep above a certain amount in my account, so I shouldn't just transfer everything to the new account.