Account for bills

Partner and I have had the realisation that something has to change after what can only be described as the most awful couple of weeks financially and have decided that we need to open a bank account for bills that we can each deposit into.

What are the best basic accounts? All we need is an account that allows DD's, we don't want a card or anything else as it will literally be just for the payment of bills.

Also, how easy is it to try and align all payment dates? We both get paid at different points of the month so it's going to take some organisation to bring everything together so we can ensure the correct amount is in the account but think this would be easier if the bills went out around the same time?

Any help would be appreciated, thank you
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  • jimjames
    jimjames Posts: 17,532
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    I'm sure most companies will allow you to move bill dates.

    However you're probably better off keeping a balance in the account and if you open an account that pays a decent rate of interest then it means you'll get paid interest on all the money there too.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • grumbler
    grumbler Posts: 58,629
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    >> Basic Bank Accounts

    Re the dates, you can ask the providers, but some may not change it.
    IMO, It's much easier just to make sure that the amount needed for all bills is in the account at the start of each month.
  • EarthBoy
    EarthBoy Posts: 3,031
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    You won't get a basic bank account if you've already got a current account. Banks reserve the basic accounts now for people with financial difficulties who can't get an ordinary current account.

    Any ordinary current account can be used to pay your bills. They all come with a debit card, but you don't have to use it.
  • carlyfluck
    carlyfluck Posts: 137
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    I use the NatWest reward account, currently get 3% cash back on a variety of different bills. However I have heard they are lowering the rate to 2%. There is a charge of £3 a mo th for this account so try the calculator to see if it's worth your while.
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  • teddysmum
    teddysmum Posts: 9,471
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    carlyfluck wrote: »
    I use the NatWest reward account, currently get 3% cash back on a variety of different bills. However I have heard they are lowering the rate to 2%. There is a charge of £3 a mo th for this account so try the calculator to see if it's worth your while.



    There's no need for a calculator :


    The £3 fee takes the 3% interest from the first £100 of bills, so you only get 3p for every £1 over £100.


    When the rate drops to 2% with a £2 fee the same applies, but with 2p in the £1 for bill amounts over £100.


    Eligible bills are gas, electric, water, council tax, broadband and mobile phone, only.
  • Dobbibill
    Dobbibill Posts: 4,133
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    Why don't you leave your bills where they are and open a spending account - it's much easier to move your spending money on pay day than to move all your bills before pay day (unless you are doing a full switch)
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  • ozaz
    ozaz Posts: 315
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    edited 22 April 2017 at 2:31PM
    I use Santander 123 Lite for paying my bills due to the cashback it pays on direct debits.

    There's a £1/month account fee but it pays 1 to 3% cashback on various Direct Debits. I expect to get approx £60/year back on expenditure of ~ £4300/year after deducting the account fee.

    I would get roughly the same net amount back from Natwest Reward account when it switches to a £2/month, 2% cashback structure in June.

    I just went with Santander because I already had an account with them.
  • EachPenny
    EachPenny Posts: 12,239
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    The Santander 123 Lite is the obvious choice, or the full 123 if you can make the credit interest work for the additional monthly fee.

    However, to open new accounts you will need to pass credit checks etc... is that likely to be an issue?

    I'd also question the wisdom of aligning bill payment dates. If you have a difficult month and then all your bills become due at the same time you may be in a position where something has to go unpaid, potentially with late payment/returned item/overdraft charges. May be less of an issue if all the bills are due just after you get paid. However, bills spread through the month gives you some flexibility, giving you more opportunities to find an extra bit of money if needed to make sure the bills are paid.

    One thing to look out for is free text alerts if the balance on the account drops below a certain level - that way you'll know in advance if a bill payment is going to fail and they act as a reminder to make sure the balance on the account has been topped up. If it isn't your main account you may not get into the habit of regularly checking.
    "In the future, everyone will be rich for 15 minutes"
  • sacha28
    sacha28 Posts: 881
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    Dobbibill wrote: »
    Why don't you leave your bills where they are and open a spending account - it's much easier to move your spending money on pay day than to move all your bills before pay day (unless you are doing a full switch)
    Thank you for this advice Dobbibill, this is the exact action we have gone for. Sometimes it's difficult to see the wood for the trees when trying to sort yourselves out!

    We are, somewhat, financially delinquent and haven't had a proper handle on where our money goes. We are debt free since we each took out a DRO (discharged 3 years now) but still find ourselves living hand to mouth every single month and it's soul destroying when we both work so hard and yet seem to have nothing to show for it! Yesterday we sat down and actually communicated and did several spreadsheets so we could see what goes out and when. It feels so liberating just to have a plan!!!

    Thank you all for your advice, it has been very much appreciated and got us talking for the first time in a couple of years (we somehow got into the trap of burying our heads in the sand which you would have thought we had learned not to do after the DRO).
  • Ben8282
    Ben8282 Posts: 4,821
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    I'm not sure that opening a new account for this purpose is a good idea. I think you would be better off leaving the money in one account and reducing any overdraft use or potential overdraft use on the account. Each month, on the desired date, you account for the total of your bills as if you had transferred the money to a different account and treat this money as spent and not there until it is actually paid out.
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