Second current account

The_Boss

I have had my NatWest current account since 1996 and want to keep this open. However, the rate of interest is not particularly great, and neither is the overdraft rate.

I'm looking at applying for another current account, probably through Nationwide. First of all - can you have more than one current account? Closing the NatWest one is not an option for me just due to length of service.

Secondly, I'm assuming the current account will show on my credit report if I have an overdraft. Therefore, are my applications for credit going to be affected if I state my NatWest account as my main account and they dont see it on the report (its not on either Experian or Equifax) but see the new one and think that I am misleading them?

Tallymanjohn

Nothing to stop you opening another account but the bank will probably insist on having regular payments made into it - ie salary, pension or whatever but if you're planning to use it as your main account it shouldn't be a problem. We have 2 accounts - main one with Co-op which salary paid into & then a 'house' account with TSB which just has a regular £900/month transferred to from Co-op to pay household bills, shopping etc. Never had any hassle from either bank. Shouldn't be a problem with Nationwide as long as you intend to make it your main account. If you don't use your NatWest account for some time they are liable to close it for you anyway.

YorkshireBoy

The_Boss wrote:

First of all - can you have more than one current account?

I have 4.

Closing the NatWest one is not an option for me just due to length of service.

That would be very wise (for your ongoing credit applications).

Secondly, I'm assuming the current account will show on my credit report if I have an overdraft.

A&L (for example) report current accounts, even if you don't have an overdraft. Strangely, my Barclays account (opened in January this year for the £200 incentive - they paid me twice! ) is not reported.

Therefore, are my applications for credit going to be affected if I state my NatWest account as my main account and they dont see it on the report (its not on either Experian or Equifax) but see the new one and think that I am misleading them?

I wouldn't have thought so. They'll be aware that many of the pre-1998 (I think?) current accounts are not reported if the account conduct is good. Your only problem could be if one of your credit card applications results in them wanting to see 3 months bank statements. They may ask questions if you show them the NatWest statements without any salary credits/account activity.

kenshaz

The_Boss wrote:

I have had my NatWest current account since 1996 and want to keep this open. However, the rate of interest is not particularly great, and neither is the overdraft rate.

I'm looking at applying for another current account, probably through Nationwide. First of all - can you have more than one current account? Closing the NatWest one is not an option for me just due to length of service.

Secondly, I'm assuming the current account will show on my credit report if I have an overdraft. Therefore, are my applications for credit going to be affected if I state my NatWest account as my main account and they dont see it on the report (its not on either Experian or Equifax) but see the new one and think that I am misleading them?

I have got about 6 current accounts,I use them like jars,with money in for different purposes.
When you apply state that you do not want an overdraft,or just a £100
I have just opened an Halifax with over 5% interest and it has a good online account which is very user friendly.
I state what-ever account I want or feel like it makes no difference,but I would keep yor oldest account and use that ,because length of time counts.
Perhaps once again you are giving them to much credance for sophistication

The_Boss

Yes, I think that sometimes I do worry about small things too much! Thanks for the advice guys. I didnt realise that having more than one or even two current accounts was so commonplace.

The_Boss

Just to add - if I apply for an account now and an overdraft later, that will show up as two searches. If I apply for them both together, will that show up as only one search?

kenshaz

The_Boss wrote:

Just to add - if I apply for an account now and an overdraft later, that will show up as two searches. If I apply for them both together, will that show up as only one search?

I would apply for the account and overdraft at the same time,then it will be one search

tomstickland

I've got four current accounts. Two are dormant, one is the main, and the other was used for sign up bonuses and a few linked savings accounts.
Don't stick with a low interest current account when there's A&L, LloydsTSB and Halfax all offering 4-5%.

a&akay

Open accounts where you are allowed to when it suits you, your circumstances and your budget to maximise convenience and savings, eg in my circumstances:
1. Had a Barclays for 20+ years. Useless interest rate but most of my pay goes straight out into other vehicles where it can earn most interest in non-earning wife's accounts. Also can park right outside and push cheques through letterbox and draw money from ATM in a few seconds. Good to prove stable long term financial relationship with a bank. Recently used to transfer £250 every month into my wife's new Regular Saver at 10% tax free.
2. Nationwide. Excellent account for overseas transactions. My daughter is currently in Turkey with my FlexAccount Debit card. She can text on her mobile for money to be tranferred from my wife's ESaver (tax free) to her Flex to my Flex in a few seconds on the web (money comes from my daughter's Halifax account). She can then draw cash at a bank at low cost.
3. A&L. Opened for £50 each + my £1000 overdraft transfered to wife's online saver for 5.15% interest ( since transfered to Birm Midshires at 4.95% but soon to Yorkshire BS at 5.1%) see Clariman's recent post on the Stooz site. Used to transfer the maximum £250 monthly into Regular Saver at 10% interest.
4. Halifax. Joint account with my wife + 2 x daughters with their own accounts as minors with my wife in control of their finances over the web. I pay my wife housekeeping from Barclays every month so it is really her account to keep track of her and our daughters' finances. Used to transfer the maximum £250 every month into Regular Saver at 7% tax free.
5. Lloyds TSB. Joint account with my 86 year old mother who lives 80 miles away. She can't be bothered with the internet but rings me to carry out any transactions. She is disabled but there is a disabled parking bay right outside her local branch if she wants cash.
6. LLoyds TSB for my wife for the new 8% tax free Regular Saver at £250 per month.
7. Etc Etc. Use Excel to keep track of everything!

Gordon_the_Moron

Nationwide pay a poor interest rate too if you pay under £1000 the 4 and odd percent falls (sharply)

If you can't pay in £1000 per month I'd suggest one of two things

1) Stay with Natwest and open an E-savings account, never hold more than you need in the current account and transfer between the two online as you need the cash (it is instant)

2) Do the above with Nationwide Flexaccount (the interest rate on the Flex doesn't matter if you keep no money in it) this is more hassle than choice 1, but it is the superior option as the E-saver pays a slightly better interest rate but more importantly the overdraft rate is significantly cheaper.

--- If you pay in over £1000/month Coventry Building Society is worth considering for the current account, first £250 of overdraft free, good interest rate on the current account even for larger sums.