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    • chamberino
    • By chamberino 9th Jul 17, 3:46 PM
    • 6Posts
    • 1Thanks
    chamberino
    Sensible number of bank accounts
    • #1
    • 9th Jul 17, 3:46 PM
    Sensible number of bank accounts 9th Jul 17 at 3:46 PM
    I've been reviewing the guide on the site regarding which bank accounts to get to maximise interest rates on savings. I have about 20k that I want to save. I've managed to work out what would give me the best offer, but it would involve opening 10 bank accounts in total!

    I think the amount of admin time involved in managing all this might outweigh the actual benefits of the interest. Also the number of direct debits required would seem to add up as I don't pay my bills via DD. I'm also concerned as I'd like to get a mortgage in a year and I've read that opening many accounts will hurt my credit score.

    What have other people done to manage this in a reasonable way? Where should I draw the line?

    *List of accounts for maximum interest, highest first*
    Nationwide - 5% on 2.5k
    Nationwide 5% on 500/month regular saver
    Tesco 3% on 3k (2 accounts)
    Bank of Scotland - 3% on 5k (3 accounts)
    Santander 1.5% on 20k (500 in/month) 60/year fee
    Santander 2.5% on 200/month regular saver
Page 1
    • datlex
    • By datlex 9th Jul 17, 4:20 PM
    • 1,355 Posts
    • 1,139 Thanks
    datlex
    • #2
    • 9th Jul 17, 4:20 PM
    • #2
    • 9th Jul 17, 4:20 PM
    There is no guarantee you would be able to open 10 accounts any way. Opening accounts does cause your credit rating to go down as the credit ratings agencies have not caught up with the concept of higher interest on relatively small balances/reward payments on accounts. For yourself it may be worth waiting a few months. Regarding DDs this could cause you an issue as most current accounts have a DD requirement. Most will also have a funding requirement. I personal keep my funding and DDs separate which means I actually pay in more than the funding to each account via a circulating amount. Regarding the number of accounts, sometimes 2nd accounts have to be joint so double check.
    Don't forget you also won't compound the interest you receive on these accounts once you have the limit for receiving interest. You would therefore need to move it to a different account to get interest on the interest if you did decide to go that route (Personally I move the interest to an account which I am using to save up for Christmas)
    • YorkshireBoy
    • By YorkshireBoy 9th Jul 17, 4:55 PM
    • 29,445 Posts
    • 17,228 Thanks
    YorkshireBoy
    • #3
    • 9th Jul 17, 4:55 PM
    • #3
    • 9th Jul 17, 4:55 PM
    Bank of Scotland - 3% on 5k (3 accounts)
    Originally posted by chamberino
    Now 2% (since 11/6/17).

    If I was looking for a mortgage this time next year I wouldn't worry in the least about what the CRA's thought of my current account searches now!
    • antrobus
    • By antrobus 9th Jul 17, 5:10 PM
    • 15,105 Posts
    • 21,440 Thanks
    antrobus
    • #4
    • 9th Jul 17, 5:10 PM
    • #4
    • 9th Jul 17, 5:10 PM
    ...I think the amount of admin time involved in managing all this might outweigh the actual benefits of the interest. Also the number of direct debits required would seem to add up as I don't pay my bills via DD. I'm also concerned as I'd like to get a mortgage in a year and I've read that opening many accounts will hurt my credit score.
    Originally posted by chamberino
    Your 'credit score' isn't that important. It's your credit history that matters.

    You also need to distinguish between current accounts, which do get reported to CRAs, because of at least the possibility of an overdraft, and savings accounts, which don't get reported.

    P.S. Bank of Scotland Vantage is now paying 2%.
    • badger09
    • By badger09 9th Jul 17, 5:41 PM
    • 5,172 Posts
    • 4,368 Thanks
    badger09
    • #5
    • 9th Jul 17, 5:41 PM
    • #5
    • 9th Jul 17, 5:41 PM
    Once the accounts are set up, you can easily automate the whole 'money shuffle' process if you wish.

    Are you a first time buyer? Under 40? Don't forget HTB ISA & LISA.

    There are several other Regular Savers paying 5%: First Direct, HSBC & M&S, but they also need associated current accounts. Whether or not they are worth the extra 'admin time', only you can decide.

    If you can't face that many current accounts, there are stand alone Regular Savers paying 2.3% and 2.25%.
    • agrinnall
    • By agrinnall 9th Jul 17, 8:28 PM
    • 18,515 Posts
    • 14,228 Thanks
    agrinnall
    • #6
    • 9th Jul 17, 8:28 PM
    • #6
    • 9th Jul 17, 8:28 PM
    A sensible number is what you consider to be sensible. I have 7, many people on here have a lot more than that, some have fewer, some have only 1. It's horses for courses really.
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