Which 2 banks would you recommend for Spending Account + Savings (to pay tax yearly)?

muchacho

In an attempt to become more organised I've decided to open 2 more bank accounts.

Currently I have 2 accounts:

Santander: Money is paid in once a month. The outgoings are business/work related and as I'll know what this is each month I can keep £x in with a bit more to allow for business purchases for the next 4 weeks.

Lloyds: Personal direct debits, which is currently the gym and car insurance. What goes in is what I'll transfer from Santander each month to cover this.


What I'm looking to open is:

Account 1: I'll transfer 10% of my income to this account each month, which should cover the tax payment each April. There will be no direct debits, outgoings etc, it'll just be an account where money goes in and only comes out to pay the IR online once a year.

Account 2: Spending account. Once I get paid and everything else is covered for future direct debits, I'll be left with this to basically do what I like.

Any help on which 2 banks to go with would be very much appreciated.

muchacho

Can anybody advise please?

Jib111

I have a Natwest First Reserve, it's designed to be a savings account but I use it as my 'me' account, like you I put spare cash in there to do what I like with.

It does come with a Visa Debit also.

I think Santander should let you open another current account too, I know my bank do.

muchacho

Jib111 wrote: »

I have a Natwest First Reserve, it's designed to be a savings account but I use it as my 'me' account, like you I put spare cash in there to do what I like with.

It does come with a Visa Debit also.

I think Santander should let you open another current account too, I know my bank do.

I'm leaving Santander due to not agreeing to their daily overdraft charges. Yes; when I have my 4 accounts, I'll be using the 'spending account' so shouldn't ever go overdrawn again, however it's a matter of principle and disagree with the way they operate, so will be closing the account and not going near them again. Another bad story with Natwest a few years ago but Natwest & Santander are the only 2 I won't be opening accounts with.

A mate of mine suggested HSBC for my business direct debits, would you agree?

muchacho

I'm currently thinking of HSBC for income to go into and Nationwide for my spends.

As Lloyds only allows money to be taken out at their own cash points, it would make sense to leave that for personal direct debits.