Help with account for student house

TheEffect

I'm dealing with the 'house account' for our student house in September (though not all the bills will be in my name).

What account do I open? I tried opening a second account with HSBC, but it was declined as I had maxed out my student overdraft and credit card with them and there has been very little transactions on my account.

My main bank account is with first direct.

Which account should I apply for?

Stuart_W

I did this many years ago, we used Girobank (that shows how old I am) and Co-op bank.

However, joint named current accounts might be best avoided due to the "financial link" this may establish on your credit record - just incase anyone does a runner or comes into major financial difficulties.

A joint savings account would be much safer - can't get into debt. Something that is simple to pay into and get money out of, and you can easily track that everyone has paid what they should. Direct debits for bills would need to be on individual accounts as they wouldn't be accepted off a savings account.

We agreed to a monthly amount that everyone paid in by standing order (one person who knew they were rubbish with money chose to pay in all 12 months in advance as soon as she got her loan which was fine) - and when a bill came we withdrew that exact amount. This makes sure everything was split equally - whether it was the gas bill or loo roll, and it's easier than a jam jar.

I'd probably choose something like Co-op's Smartsaver account now - interest rate is irrelevant with such an account for this purpose (you're arguing over pennies), but this would offer cash machine and post office access in and out (we had one on campus open longer than all the banks and if you needed to withdraw exactly £4.32 to pay for loo roll you could), full online banking and faster payments system for online transfers - but any basic savings account would be much of a muchness, perhaps choose one with a bank you know. Might depend whether everything will be electronic or if you'll need to handle cash in any way. We used to cash cheques at the post office!! (time to hide my age....)

Sharon87

Savings accounts don't allow DD to be set up. I manage the house account for my house (not student though), but I use the Halifax Reward account so I get £5 extra a month cause I pay in the £1000. Not sure if you can get this, but if it's managed well it could help you improve your credit rating too, at least with the internal score at the bank.

You may need to get a basic account if you get refused for a current account. So the Co-op one, Halifax Easycash, Natwest Step account and others

ses6jwg

We just opened a joint bog standard current account with Natwest, and put the two "most responsible" as joint signatories.

At the end of 3 years I just closed the account.

TheEffect

Thanks for all the replies.

I wont get a joint account, as I don't want my credit report linked to anyone elses.
I'll try either Lloyds TSB standard current account or Halifax Reward, though not sure we'd have £1000 to pay in a month to make it worthwhile.

rb10

Why do you need a separate account?

Why not just use your normal account(s) instead?

ses6jwg

rb10 wrote: »

Why do you need a separate account?

Why not just use your normal account(s) instead?

we had one account that the electric, gas, water and internet came out of each month.

we sat down and worked out what it would be between 5 of us and then each set up a S/O into the account monthly

cifpower

http://www.coventrybuildingsociety.co.uk/savings-and-investments/Easy-Access/CallSave-MoneyManager/CallSave-MoneyManager.aspx would be a good account. Savings account with a cash card and allows direct debits and standing orders

Superheavy

What I would definitely advise is getting an account you can view regularly online, and making sure everyone is paying in on the day they say they will, as whatever second account you open will probably not be as generous if you get DDs bounced or go into the red etc as the student accounts usually are.