Why do people have more than one Bank/Current Account???

tabby_cats_mum

One for pay to go in and all direct debits/bills to come out of.
One for spending money and food, just draw cash out, occasionally use debit card.
One to get husbands household contribution paid into to get free fiver, money transferred staright out to other accounts.

I'm 6 months down the line from opening a separate account for spending money and it's totally changed my financial management skills, I've never had so much money (or so it feels). All from reading about ''piggy banking'' experiences on this site. So cheers folks for invaluable advice. :T

Tally-Ho_2

Having once lost my (then one and only) debit card on a Friday evening just prior to a bank holiday, leaving me no access to funds, I opened another account pretty quickly.

I now keep one account for my bills.dds/SO's, and another for 'spendies' both with the same bank, with a third 'basic' account at a different bank for my 'emergency ' funds should I ever lose my main debit card etc.

It works well for me.

Tally

seven-day-weekend

My current Bank Accounts are used as 'money boxes'. Each has money going into it, allocated for specific things.

Jock_Tight

3 x Lloyds TSB Vantage accounts - for up to £21k at 4% (one is used as main current account)
2 x BoS Reward Accounts - for the £5's

itsgazza_2

If you need seperate accounts for specific purposes surely you would be better off with Savings Accounts instead of Current Accounts??

I know that interest rates are low but any interest received is better than none.

seven-day-weekend

I do have savings accounts as well.

YorkshireBoy

3 x LTSB Vantage.....................£21K @ 4%
4 x Halifax Reward*..................£240/yr in reward payments
Nationwide Flex........................overseas use (and silly switching offers!)
HSBC......................................£10K FPs
NatWest..................................they paid me £100 to open one!
Yorkshire Bank 1.......................held 30 years, so improves credit score
Yorkshire Bank 2.......................don't know really!
Alliance & Leicester...................£10K O/D being stoozed (£260/yr profit after £5/mth charge)

Total = 13


* One of which is my main bills account

seven-day-weekend

LTSB Current 1 - mine and my husband's incidental spends, especially online transactions and mobile phone top-ups. Never more than about £100 in it, unless necessary. Funded by tiny annuity and if necessary topped up from elsewhere.

LTSB Current 2 - a joint account with my son, funded by the rent from him, his partner and the lodger in our UK house and used for the expenses of this property

Co-op - My husband's Teachers' Pension goes into this and and this is what we mainly live on.

Nationwide - My State Pension goes into this, I have only been receiving it since February. It is allocated to large one-off expenses such as car insurance and maintenance, house maintenance for our Spanish house etc which for the last five years had had to come from savings. It also has the facility to withdraw free cash from European cashpoints, useful for us as we are in Spain for half the year. Any left over will be allocated to savings.

We also have savings accounts.

Hope this clarifies.

p00hsticks

itsgazza wrote: »

If you need seperate accounts for specific purposes surely you would be better off with Savings Accounts instead of Current Accounts??

I know that interest rates are low but any interest received is better than none.

But often it's required (or just convenient) to have a current account with the same institution to sit alongside the savings account so that you can easily move money in and out...

BigAndy_79

13, YorkshireBoy ?!?? I am loving your work, squire !!