Downside to having numerous current accounts scattered about?

mrchagle

D1zzy wrote: »

More Interest!!

O'yeah, forgot about that.

vaporate

D1zzy wrote: »

More Interest!!

Put more money in one account then lol

On a serious note, I'm using ISA's then to fixed no access savings bonds once I get either 2500 or 5000 £'s

Consumerist

I would point out that MSE piggy-banking recommends the use of separate accounts for different purposes (step 2).
.

Lansdowne

K_P83 wrote: »

I have 2x solo FlexAccounts with Nationwide & 1x joint

I also have a current account with Halifax.

I was considering closing one of the FlexAccounts, but then i thought, is there much point?


There will be people with more current accounts than me, so i was wondering, are there any downsides to a load of them with different providers that i can't think of?


Other than a lot of statements through the post ....... which isn't a REAL downside.

Right, since no-one has quoted any downsides:
1) Much hassle registering change of address when moving house.
2) Risk of fraud being unnoticed because you don't use the account
3) Risk of overdraft penalty charges if you get muddled and make a payment by mistake from an empty account
4) Can't take up an offer for 'new customers only'
5) Risk of an account being declared dormant if not used for more than (1yr?), according to some threads here
6) Risk of overlooking important correspondence (e.g. introduction of charges on the account)
7) Looking like a weirdo for having 11 bank accounts.

And the advantages:
1) Makes it easier to open another account (e.g. bond) as they already have your ID
2) Looking like a rich so and so for having 11 bank accounts.

Snakeeyes21

I have 5

But this helps me budget what little funds I have.

Wages come in one - money transfered for monthly bills - one for rent - one for yearly bills like insurance tax etc - one for a rainy day fund (although It better just start specking at the moment I cant quite afford a monsoon just yet) - and the last for anything I'm saving up for in the short term.

What ever is left in the first is mine to spend, which isn't a lot but its all mine.

I get paid weekly and if its in one account I will spend it all (that used to happen quite a lot) my OCD takes over and I'm compelled to empty my account and buy a load of c*rap I don't need or want :eek:

D1zzy

vaporate wrote: »

Put more money in one account then lol

I wish!.............
If only they didn't impose such low limits on the any decent rates .
If only I had enough confidence to ignore the FSCS limits;)

seven-day-weekend

I have one (Co-op, joint with husband) that his Teachers' pension goes into. This gets transferred every so often to our Spanish Bank when we are in Spain and this is mainly what we live off.

I have one (LTSB, joint with son) that the money - lodgers' rent etc - generated from our UK house goes into and this acount pays the bills for that house.

I have one (LTSB, joint with husband) that another small source of income goes into. This pays the credit card bill and if there is not one that month, goes into savings.

I have one (Nationwide Flexaccout, in my name solo at the moment but will change to joint with my husband in the near future) that my recently acquired State Pension goes into, this money is not allocated at the moment, but is used where and when needed and is useful if I need to draw money from an English Bank whilst I am in Spain as there are no charges for doing so. I have only been receiving it since February 1st. Any surplus will go into savings.

We each also have savings accounts and ISAs in our individual names. Any money for large annual bills such as car insurance goes into one of these and is drawn out when the time comes.

I think this way of doing things is similar to what MSE recommends for budgeting, but I have been doing it for years.

Lulee36

I have Lloyds as my main account but have current accounts with HSBC, A & L , Natwest and RBS

To be honest I hardly use the other except Lloyds but im reluctant to close them incase they do any good incentives or new services

Eg I keep A & L just in case I need to urgently pay cash in as I can use the post office

I have thought of closing them but they are easy to manage and with online statements you dont get all the paper in the post

Also if anyone uses Monilink through A & L they sent me a letter yesterday to say this will not be available from the end of March 2010

Nine_Lives

Lansdowne wrote: »

2) Risk of fraud being unnoticed because you don't use the account
4) Can't take up an offer for 'new customers only'
5) Risk of an account being declared dormant if not used for more than (1yr?), according to some threads here
.

These are the only disadvantages i've seen mentioned in this thread then that i weren't really aware of (or just never thought of).


My reason for doing it, or at least considering it was that Nationwide have in the past offered accounts based on if you'd been with them for x-years. Can't do that if you're a new customer.


Also, i think it's Barclays that have some ISA that you can only open online if you're a current member with them. As i work 5-6 days a week, it's difficult for me to get into a branch, so it'd be handy to have an account.


As said, they already have your details if you've scattered accounts.



Yes i've 3x flexaccounts & yes they all have debit cards & cheque books attached.
Nope i don't have paper statements for any of them.

They did give me a bit of bother when applying for my 2nd flexaccount. I think i had to apply twice IIRC. There was no problem with the joint.


There's no money at all in the joint. Only when we need to use it for a specific reason does any money go in, but it's almost always instantly back out again.

The 2nd flexaccount usually gets used for internet dealings, but with a credit card, i use that more now. But then some sites charge you for using a credit card, so i'd have to use the debit card anyway

mrchagle

K_P83 wrote: »

Yes i've 3x flexaccounts & yes they all have debit cards & cheque books attached.

I didn't realise you could have multiple current accounts at the some institution. Food for thought...