What is the best bank account for rent income?

gnightingale

I have bought a house that I am renting out.
I need an account purely for the rent income and mortgage payments.
It is not a business and I do not want to put my salary into it.
Who would you recommend?
Many thanks

JanCee

I would just open up another current account with your existing bank. This would save you any hassle at the account opening stage and also you may find that you sometimes have to switch money around quickly and with your existing bank this will be instant.

For instance, if the rent money is late coming in for any reason you may have to cover the mortgage yourself to avoid going overdrawn and incurring bank charges.

Once any surplus monies have built up you can then safely transfer to an interest paying account like ING.

Shadowplay_2

Hi,

If you dont currently have one, why not have it paid into a ISA. protection from the Tax man is never a bad thing. obviously if the rent exceeds the £3,000 a year limit you would have to find another home for the surplus like ING or another Instant Access Savings account.

If your looking for higher returns and dont need the money at your finger tips, why not and Index Tracker Fund?

MarkyMarkD

gnightingale wrote:

I have bought a house that I am renting out.
I need an account purely for the rent income and mortgage payments.
It is not a business and I do not want to put my salary into it.
Who would you recommend?
Many thanks

I don't see any particular reason to use a separate account for this - can't you keep records of the house-related transactions and push the funds through your normal current account? That's what we do.

chiny

Particular reasons... I use my rental income to fund my A&L Premier a/c, thus acquiring free travel insurance that used to cost real £££. A side effect is that with far fewer transactions, I could spot a missing payment.

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Chiny