Two bank accounts- how do I set it all up?

MissShoes

KPR11 wrote: »

I had kind of known that it is but this thread just confirmed it(https://forums.moneysavingexpert.com/discussion/2333973



Luckily I don't have that many direct debits so it was a case of just transferring my salary and a couple of many DDs to my new account.



That is kind of what I do, the amount I transfer is based on 3 things. 1. I calculate how much OD I can afford to pay off as a minimum that month 2. What my DDs on that account are and then 3. Approximately half my personal spends and irregular items / bills (not on DD).

Have a read of the thread there are interesting things mentioned by DV and DC.

Hope it helps

I wonder if I should do it the other way around then- so keep my wages and outgoings in my bank account- then each month transfer across my spends to my credit union current account. That way, I still get to manage my money and see 0 as the lowest point, and the bank won't suspect anything is up and close my OD?

randomer

Just opened account 2. They were trying to flog me some all singing all dancing one. Just the basic thankyou!
Now I have to figure out the machanics of keeping the OD at Lloyds and shifting the rest of the stuff over.

DarkConvict

They can recall the OD whether you use it or not, given 30 days notice they can take it anyway at anytime without a reason.

LexieLou

Hi,

If it's any use to anyone I have a scalifax current ccount with an OD that is maxed out. But I make a point of paying into it every month, enough to cover the horrendous debit interest charges and also a sum towards reducing the OD.

I also have another Current account with another bank that has no OD and it's my monthly account that pays bills etc. Along side that I have a savings account with the same bank, that i can trans money in to each month for various bills.

As I have both accounts with the one bank I can use online banking and transfer money as I need too. At this stage in my journey I am more concerned about paying off my debt so I just stuck with a basic current account as I'm never in the position to have loads of money in it for any given time!

Hope that helps.

LL xx

randomer

So bank with OD might get shirty when they notice what I am doing?

LexieLou

My bank didn't with me, and infact they are making more money out of me than if I had my salary etc being paid into the OD. The other way you could do it, would be to get your daily spending mone trans into another account, so that when it's gone it's gone. And also make a conscious effort to reduce your OD by what ever amount every month.

I also have all my DD set up to come out the first few days, that way I know where I am.

There is no perfect way, it's a case of trying out a few methods before you crack the right one.

LL xx

DarkConvict

randomer wrote: »

So bank with OD might get shirty when they notice what I am doing?

They can get shirty at any time, but generally you should be okay so long as you are paying some money in, because they are still earning money off you in charges anyway.

randomer

Ain't that right!!!

KPR11

MissShoes wrote: »

I wonder if I should do it the other way around then- so keep my wages and outgoings in my bank account- then each month transfer across my spends to my credit union current account. That way, I still get to manage my money and see 0 as the lowest point, and the bank won't suspect anything is up and close my OD?

As other posters have said there is no right or wrong way. The method I described works for me personally but may not work for you or others.

Good luck with it and do let us know how you get on.