Why do people have 4-5 bank accounts? with the same bank?

Jane_gs

Why do some people have 4-5 bank accounts, with just 1 bank single bank company ?

why the need to have 4+? or are each account for a seperate reason ?

Can you tell what you use Each one for too?
what is the purpose of account 1? 2 ? 3 and 4 ?

libra10

We have several accounts with Nationwide.

A joint flex account and my personal flex account.
An e Saver with enough money in for items which might crop up.
A Champion saver with passbook - my OH doesn't use the internet much and can call at a branch office, if necessary.
Personal e Plus account.
My ISA
OHs ISA
Two Nationwide ISAs for current year, OH has one, I have the other. Very good rates offered at the time.

Some of our accounts need looking at and changing, looking into this.

Nationwide is were out main accounts are, but use other financial institutions also, depending on interest rates offered.

BugsyBrowne

It's called a bank account fetish no different to people who are into BDSM.

BillNBob

The only reason I have more than 1 was from years ago when interest rates were better than nothing as they are now.
I have a flexi and savings account with NW & 3 different savings accounts with Halifax, they all used to have different rates so I would move money around.
These days I dont have the money or the incentive!!

Or of course it could be for tax, secret or otherwise reasons.

Jane_gs

libra10 wrote: »

We have several accounts with Nationwide.

A joint flex account and my personal flex account.
An e Saver with enough money in for items which might crop up.
A Champion saver with passbook - my OH doesn't use the internet much and can call at a branch office, if necessary.
Personal e Plus account.
My ISA
OHs ISA
Two Nationwide ISAs for current year, OH has one, I have the other. Very good rates offered at the time.

Some of our accounts need looking at and changing, looking into this.

Nationwide is were out main accounts are, but use other financial institutions also, depending on interest rates offered.

Thanks, but can you tell Why you need each one for ?

MoneySaverLog

Some accounts have restrictions e.g. Lloyds Vantage have a £5,000 limit for interest purposes, but you're allowed three.

Others have managed to get multiple Halifax Reward accounts all paying a fiver a month.

Some people like to split their accounts into savings pots, and use multiple accounts for this.

There could be many reasons for people having more than one account with a bank.

AdamJK_2

I do have several too (all with LBG):

Lloyds Gold
Joint account. Both me and my other half pay in a standing order to cover monthly bills and savings. All joint bills draw from this account. Basically allows us to spend throughout the month knowing that our bills & savings are taken care of - what's in my personal account is mine to spend/save as necessary. Insurance on here covers both of us (although may change to Halifax URCA as the product is better)

Lloyds Classic
Personal account. My wages pay into here and all my own spending comes out of this account i.e. phone etc. Wife has her own account elsewhere.

ISA
My ISA allowance - tax free savings.

Advantage Saver
Holds funds for emergency access - so that I don't need to draw on my tax-free pot.

Numerous savings accounts
All the detritus of the silly policy of 'bonus rates'. Should really close them but can't be bothered to make a special trip into branch to fill out numerous forms to close them. Nothing in them at all.

Halifax Reward account x3
I want the £5. Occasional transaction every now and then to keep them happy. One each and one joint. Bounce the same money around the accounts to earn a nice £15pcm.

Barclays current account.
Sits there doing nothing with a bit of spending money in. If LBG has a meltdown the same as Natwest this would be the account I used in the meantime.

sparrer

One bank account in each of two different banks. One is an on-line bank into which my state pension is paid, and covers all my utility bills and other DD's. The second is a physical bank which has my private pension paid into it, this is my spending/saving/emergency money. I have an ISA with this second bank also. Keeps it simple.

libra10

Jane_gs wrote: »

Thanks, but can you tell Why you need each one for ?

The joint flex account is for everday use and payments.

My personal flex account and e Plus account are to pay for anything I don't really need, without feeling guilty about buying something special. The trouble is that I usually use out joint account, and probably don't need my personal accounts.

The ISAs are both OHs and mine - we have been saving since TESSAs were announced, and therefore we tend to have several, some merged and others waiting to be merged, if possible.

When we opened the Champion the interest rate was good, since reduced. There is 60 days withdrawal notice on the account, only keep in case my OH needs to go to the bank, easy to use. It should be merged with the esaver though, and transferred to gain better interest rates.

Currently trying to reduce number of accounts which would make it easier to keep track, and less paperwork.

david39

You can usually rename your on-line accounts with a nickname of your choice, thereby keeping them distinct and avoiding moving money to and from the wrong account.

It'a useful to keep at least one other account with a bank other than your main one - making sure that it is not in the same group of banks. Those with main accounts with NatWest and a second one with another bank would have been able to access at least some money during the recent problems.

anniecave

I have both a ltsb current account and a natwest current account. I had to open the Natwest with an ISA I think it was, I've long since moved the ISA elsewhere. I've kept the current account as I figure having the option to be able to pay in cheques to two different banks is useful.

And yes, useful to have a second option to be able to access money or pay bills from if your main bank is having computer problems!