Downside to having numerous current accounts scattered about?

benoit

Anyone know what Citibank are about? I looked at all the accounts but it seems all of thier accounts (even the most basic one) has a minimum income requirement of £20,000. Do they not offer a basic account like other banks?

olly300

Lansdowne wrote: »

Right, since no-one has quoted any downsides:
1) Much hassle registering change of address when moving house.

If you have more than one savings account and credit card you also have this hassle. You are advised to spread your funds and put them in different financial institutions especially if you have a lot of money.

Also if you have credit cards and loans it helps not to have them with the same banks as your bank and savings accounts.

Lansdowne wrote: »

2) Risk of fraud being unnoticed because you don't use the account

That's what statements are for and internet access.

Lansdowne wrote: »

3) Risk of overdraft penalty charges if you get muddled and make a payment by mistake from an empty account

Do you check your balance before you pay bills online? I do.

In addition you don't need to set up every account to handle your bill payments or for DD.

Lansdowne wrote: »

4) Can't take up an offer for 'new customers only'

Never used them as the banks that offer them I wouldn't touch with a barge pole due to mucking up savings accounts.

Lansdowne wrote: »

5) Risk of an account being declared dormant if not used for more than (1yr?), according to some threads here

Not had that.

Lansdowne wrote: »

6) Risk of overlooking important correspondence (e.g. introduction of charges on the account)

I read small print regardless if it's for credit cards, insurance or bank accounts just to check they have not made up some charge.

Lansdowne wrote: »

7) Looking like a weirdo for having 11 bank accounts.

I don't have 11.

Lansdowne wrote: »

And the advantages:
1) Makes it easier to open another account (e.g. bond) as they already have your ID

Lansdowne wrote: »

True.

Lansdowne wrote: »

2) Looking like a rich so and so for having 11 bank accounts.

No you don't look rich. I've always known people with more than one bank account so to me it's normal.

Another advantage you haven't mentioned is if one of the banks decides to freeze your bank account(s) you have another account to use elsewhere.

BTW I have two flexaccounts with visa cards simply cos the first one doesn't allow faster payments. All I use it for is to transfer money into my account from my other accounts.

mrchagle

Good post/reply Olly

Lansdowne

Olly, all your points in response to me are fair comments if you're that sort of person; it suits some people to do this. The OP was asking if there was any point in closing an account if they stop using it: and to avoid some of those risks I would say yes.

Nine_Lives

I could open a new thread in the credit card forum, but i don't want a load of threads scattered about really



This question was about current accounts, but i have a new one...

QUESTION: The verdict on current accounts imo, is that it doesn't really matter how many you have.

How about the same question for credit cards? I know little about credit ratings & scoring & how they work exactly.
I have a Nationwide C/C but am also with the Halifax, which is now going to be my main current account. Can too many open credit cards be harmful to your name, or is this not the case?

JohalaReewi

Lansdowne wrote: »

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.

3) Having an account you can use to get a switching bonus without disrupting your main banking.

Primrose

Have opened various different savings accounts for differing reasons over the years (passbook & internet) - often because they were paying a better rate of interest. Have rarely bothered to close the old accounts because one never knows when they might suddenly start offering a good interest rate again and it's a real pain having to continually go through the Money Laundering process, so I normally just leave nominal amounts in them.

However, this could be a longterm problem now savings institutions are operating the Dormant Account policy, if you don't occasionally bung in a couple of extra pounds to keep the account active. If you have multiple accounts like this probably the best thing to do is list them all on a spreadsheet or somewhere with dates when the last activity took place, and review once a year.

It's also a good idea to list them all on a supporting information sheet, update it once a year and lodge it with your Will, especially if you're in the habit of continually rolling over savings into Fixed Term bonds, where savings account information can become out of date fairly quickly.

scott_lithgows

JohalaReewi wrote: »

3) Having an account you can use to get a switching bonus without disrupting your main banking.

4/ Keeping the postman in a job whilst appearing to be quite wealthy to him.