Who has a bill account and a spending account?

OMAR

Does it work well?.....Do you just transfer a set amount to cover bills.....or transfer a set amount just for spending?

What bank account would you recommend? I just have a main accound with First Direct, but think 2 current accounts would work better.

Thanks for Advice

Farmerbob

I have run 2 accounts for years, great way to budget i have my bill account and my spending account with my debit card. Bills can vary sometimes so i round up 40-50 per mth makes sure i'm covered in case I've miscalculated and gives me a bit extra near the end of the month before payday.

You can run 2 current accounts as i do but make sure its a fee free account in case they give you a packaged account.

OMAR

so u transfer a set amount for everyday spending each month....

Farmerbob

No the other way round my wages get paid into my spending account and i just transfer over whats needed to the bill account

WestonDave

We've got 2 First Direct accounts - not quite as you suggest but near enough. One has all the direct debits and standing orders going out, plus our salaries and child benefit going in. From that a standing order for what is left after the DD's etc goes to the other account for other spending - but that includes things like food, and credit card bills (which in turn includes some things like insurance etc that are paid that way). It would however be just as easy to budget everything predictable and leave that in the first account with only the surplus going across.

Rich1976

OMAR wrote: »

Does it work well?.....Do you just transfer a set amount to cover bills.....or transfer a set amount just for spending?

What bank account would you recommend? I just have a main accound with First Direct, but think 2 current accounts would work better.

Thanks for Advice

Me and my OH have a joint account with First Direct. At each pay day I use a spreadsheet to calculate how much the bills are going to be the following month ( all the bills are on fixed DD except the food, phone bill) so this makes it easy to work out. We then each transfer a set amount from our individual accounts ( mine is with fd also and hers is elsewhere) into the joint account.

we have been doing this for 10 years without a problem. It works very well and is a good way of planning your budget because everything in the joint account is for the bills. Everything left in our own accounts is for us to as we like.

notbritishgas

I have done this since 1966:eek: when the Nat West (or the National Provincial as it was then) had a "budget account" which took your annual spend and divided it into 12 monthly payments, allowing you to go overdrawn if necessary. For this they charged an extra monthly payment.

When I had a little more money I stopped that and carried it on myself by opening another current account (now with Cahoot). I add together all of my regular annual spends, even my luxury ones like Golf club fees, then divide by 12 and create a standing order from my other main account for that amount. At the moment the monthly amount is £415.

A little care is needed initially to make sure there is enough in the account to cover the outgoings, perhaps an initial deposit would be required. Or use an account with a free overdraft, I think Cahoot has one of £250 but I will check and edit this post. Also Cahoot pays interest, about 1% I think.

Edit; It is the first £100 of the overdraft that is interest free.

mysk_girl

I have 2 current accounts with Lloyds - my wages go into my sole named account and I then transfer a set agreed amount into our joint bills account. We also each have a credit card on the same account (his, I think?) and a joint online saver. So both of us can see all the bills money, savings and credit card spends but out personal money is private - otherwise I'd never be able to surprise him, or be creative about how much was knocked off those 'fabulous' boots in the 'amazing' sale!

Child Benefit goes into my account and I spend it on the kids from there. We also overpay out mortgage with nationwide, but for some reason only I can see that? We're both supposed to have Internet banking set up in it but only mine works for some reason. Can't be bothered to sort it to be honest, OH just asks if he wants to know how much we owe - but actually Nationwide don't show the value of the overpayments online, I work it out by looking at the payments into the account.