need some advice on bank accounts

andysuccamo

Hello, I apologise in advance as this is probably a stupid question but i don't really understand banking etc, So here it goes.

Basically i have just got a car on finance and i pay for it monthly, but i get paid weekly and i am terrible at saving money, i was wandering if i could have the money moved automatically every week from my current account into another account where the finance would be taken from ? so in effect i would have 2 accounts.

I am with hsbc if this helps.

look forward to hearing from you all. :j

Gromitt

You can open another current account and have it as your bill paying account. You can then setup a standing order from your salary account to your bill paying account.

However, if the standing order fails due to insufficient cash at any time, you might be charged.

zxspeccy

Should be easy enough to set up a weekly Standing Order between the two accounts, but the second account your open should also be a current account as I would assume the finance company would be claiming the repayments by Direct Debit. In addition the Direct Debit will probably be claimed calendar monthly, so to make things easier divided the monthly payment by four and make that the amount of your weekly standing order. This will hopefully mean when the finance is paid off you might still be left with a small credit balance in your second account because you would be slightly overpaying with the Standing Order.

It is important that you know when they will be claiming each month and more importantly when the first payment is due. Once the first payment is out of the way everything else should fall nicely into place.

andysuccamo

Thank you both for your help, any idea of how to open another account as i cant seem to find anything on hsbc online banking

samwsmith1

To open a new current account with HSBC you need to call them, there's nothing stopping you opening an account at another bank online though.
If you are on the electoral roll it makes online applications easier.