More than 1 current account?

empfun

Is there any reason for anybody to be actively using more than 1 current account?

grumbler

I have a lot of them.

1. Barclays - it is my oldest account. When you apply for a new credit card or a new current account they usually ask you, how long you are with your bank. I think, the longer, the better.

2. Nationwide - not the best, but always good without any introductory offers. The best one for using abroad.

3. Alliance & Leicester - it offers free worldwide annual travel insurance and has now very good (the best?) interest rate for the first £2500 and very good (the best?) interest rate for linked Online Saver account.

4. Lloyds TSB - it was very competitive a year ago and offered £35 for opening it. Stopped using it a few months ago when opened account with A&L, but luckily did not close it. As a Lloyds TSB customer, applied for the Lloyds TSB Advanta credit card two weeks ago (was 12 months 0%, now only 6 months though) and was instantly approved with good credit limit.

5....

I can't say that I actively use more then two of them at the same time though.

empfun

Hi grumbler, kudos on your first post and it's good info you posted. Yeah, I noticed that A&L CA and the free travel insurance, nice deal. Also true that having current account with banks will give you better standing when applying for credit cards offered by them.

paint

I have 2 current accounts that I actively use - one that my salary goes into and all my direct debit/standing orders come out of (I don't use this account for any other purpose).

Then I pay £500 per month from the first current account into the second current account and use this second account as my monthly spending money.

I do this as I am trying to keep my bills money and day to day expenses separate so that I know exactly how much money I have to spend at any point in time. It imposes a little extra discipline on my spending I think and ensures that there is always enough money for the bills to get paid!

jonesMUFCforever

Paint has made a good point.
IMO if you want to use a current account and a second account (I call it budget a/c and transfer enough each month to pay all bills) I would suggest that they are at the same bank so that transfers between accounts can be done same day in case of need.
You would have to have a substantial salary to open many accounts and you tend to spread yourself a bit thin by having too many accounts.
Eric

paint

Just to reinforce ejones999's point with regard to having 2 accounts with the same bank if you opt for the bills account/spending money account method of organising your finances. I didn't at first (now rectified) and incurred charges on a couple of occasions due to time delays in transferring between nat west and first direct. Good point ejones999 - definitely use the same bank!

worldtraveller

.. I believe that if you are able to monitor you accounts accurately and ensure you leave enough time for transfers, etc. there is no problem having several accounts. There is so much competition for your money that many banks are offering generous cashbacks for opening accounts with them and minimum deposits. In my mind make as much as you can while you can!! Let's be honest, they will get what they can from you!!

deemy2004

I have 3 accounts - Yorks Bank, TSB and Halifax.

Recently halifax online died on me ! and they said I had to wait for a letter to reactivate my account

So TSB saved my butt as I could carry on my online transactions without much disruption from there, as I pay my credit cards manually.

Always best to have at least 2 current acounts and funds in several savings accounts spread amongst institutions in case problems crop up.

jonesMUFCforever

Yes according to the telly my bank is now open 24/7 so if I can't get to my branch I can use the internet and if that does not work then I can do transactions using telephone banking.
Eric

student100

I have a Halifax Student current account - which I use for all normal spending - and also I have recently opened a Nationwide Flexaccount to use when I go abroad this summer (no cash withdrawal charges or debit card charges abroad).
Also, when I am at home normally, I keep a small balance in the Nationwide account and keep the debit card in a safe place at home. Then if I was to lose my wallet containing my regular debit card, I would still have access to cash/payment in the period when I was waiting for the card to be replaced.

cloud_dog

Me and Mrs Cloud_dog have three current accounts (with the same bank). The first account is in joint names and our salaries go in there for all bills, etc, and to finance investments, savings, etc. We then each have our own accounts into which the joint account pays intop monthly (call it our allowance).

This allows us to spend our individual money how we want without needing to concern ourself about bills, etc, or if £120 is too much for a pair of shoes (not mine I hasten to add)

May seem over-complicated but it works for us and gives us a degree of independance - especially Mrs cloud_dog now she's no longer working (looking after puppy cloud_dog )

cloud_dog