Spreading money over multiple accounts.

Baj_Singh

Hi,

I thought that just incase my current bank goes bust in the current climate (heaven forbid it doesnt) then it would be worth getting another bank account in another banking group and storing some money in there just incase.

However, after looking at current accounts, it seems that these need to be my primary account which will require a constant wage going into them. So would I be right in considering that I would need some kind of easy access savings account in another banking group as back up?

Thanks in advance for any replies.

LittleVoice

Baj_Singh wrote: »

Hi,

I thought that just incase my current bank goes bust in the current climate (heaven forbid it doesnt) then it would be worth getting another bank account in another banking group and storing some money in there just incase.

However, after looking at current accounts, it seems that these need to be my primary account which will require a constant wage going into them. So would I be right in considering that I would need some kind of easy access savings account in another banking group as back up?

Thanks in advance for any replies.

"Heaven forbid it does!"

Though banks like to think your current account with them is your main current account and if you want to pick up a "transfer fee" you will have to at least initially go through the motions of changing to them, there is usually no need to have your salary paid in each month.

If you do open another current account, just check you understand the funding arrangements as some do require regular minimum deposits. For example the Co-Operative Bank has current accounts requiring £800/month - but that doesn't have to be from a salary and doesn't have to be in one payment but could be 4 lots of £200 for instance.

MrPhoton

That would be a good idea. However, does the backup savings account require a minimum amount as well to avoid any account-keeping fees? If that's the case, it is not worth the trouble of keeping & tracking more than necessary.

slummymummyof3

And if you had a linked saving account, you could just transfer for example £200 in and out of the current account 4 times (if it were a condition to pay in £800 per month)

Baj_Singh

Thank you for your advice. I will probably get an easy access account via Natwest or Nationwide just to ensure that I have some money set aside in case anything goes wrong.

ironlady2022

Remember you are covered for up to the equivalent of 100 000 euros about 85k in each bank.

jennifernil

Which bank are you with right now, and how much cash are you looking to spread around?

Different banks come out as "best buys" depending on amount and type of account.

pinkdalek

You can have other current accounts elsewhere and they don't need to be your main account. You might find if you wanted say for example an overdraft facility, then the bank would want to see some form of regular income going into the account.

You might be better just to have savings accounts with easy access with other banks, sometimes it is helpful having more than one bank account e.g. if u lose your card and then at least you have a back up debit card.

Be careful which banks you go to, check who is part of what group and if they have seperate banking licences if you are concerned about the banks going bust and the compensation scheme. It is very unlikely to happen though I feel about a bank going "bust" in this country as the government would either intervene or another bank would come along and "bail" them out eg. HBOS.