Current Account

aidso

Is it possible to have more than one current account with the same bank?

What i mean is: I currently have a Current Account with the Halifax with a fair bit of money in it. What I have noticed, probably along with every other bank, is that they only give you a decent interest on something like the first £2000 and then everything after that is like 0.01%. So is it possible to split my "savings" across multiple current accounts to get more money back ( a max of £2000 in each account)?

Do i get taxed any more for having multiple accounts?
Last month I had my Kaupthing Account migrated to ING Direct, which is meant to be one of the best Savings Accouns around but the AER is woeful...which is why im not considering a Savings account here.

Thanks

Baldur

Being discussed in several threads already - see http://forums.moneysavingexpert.com/forumdisplay.html?f=20

<Edit> the following thread contains posts in which posters have opened 3 x Halifax and 3 x BoS accounts - http://forums.moneysavingexpert.com/showthread.html?t=1475183.

cash-magnet

Simple answer: Yes you can and this is something I do to maximise my interest earnings. I have 2 accounts with Abbey each holding £2500 and each getting 5% interest. I have an older Alliance & Leicester account with £2500 paying 6.5% and a newer account with £2500 paying 5%. You just have to play the same trick as we do with the BoS/Halifax £5 reward accounts and bounce enough money into each account each month. Abbey require £1000 to be credited. A&L only require £500. Halifax/BoS each require £1000.

I just bounce a single £1000 amount around between them and collect 5.3% average from them on £10,000 and the £15 a month from the Halifax/BoS accounts. I shall try and open another Abbey/A&L in the future. This is why I'm not putting the money into an ISA in April as for now I can get a better return in these taxable interest paying accounts.

Hope this helps you.

aidso

thanks cash-magnet this is exactly what i am after.

I have one Halifax account already but think im going to head towards a Barclays 6% Savings account. Seems to be quite good.

Am i right in saying you dont get taxed as much on a savings account as you do on a current account?

Baldur

aidso wrote: »

Am i right in saying you dont get taxed as much on a savings account as you do on a current account?

I think that you'll find that the banks deduct 20% tax, whichever type of account you have other than ISAs.