is it worth having two bank accounts?

winkle1

i have had an account with HSBC for the past 9 years but have gradually been moving everything over to first direct.

i have a small overdraft oustanding on the HSBC account and i'm wondering whether to aim to pay it off and close it down?

i had the account when i was a student, and it then turned into a graduate account if that makes a difference?

immoral_angeluk

We've got 2 bank accounts.. a current account that everything goes in and out of.. and a savings account which is our 'debt fund' which we transfer everything we want to pay off debt into as we have visa electrons with it which we don't have with our current account so it's easier to pay creditors with that account.
Why don't you pay off the overdraft but then ask them to remove it to save the temptation of running it up again?

Two9A

I try to seperate out everything as far as I can go. I have:

- One current account for daily use
- Another current account (holdover from my student days) for internet payments and particularly PayPal
- A savings account at high interest, tied to the first current
- Another savings account at midrange interest, where the wage goes

Compartmentalised! It can get funky to move money around, but I'm in the routine, and it works for me.

lynsayjane

before becoming a dfw and totally sorted with my finances i had two current accounts, wages went into one, bills out of another, so every payday i'd transfer over the money for the bills and then what was left was my money...pre dfw i ended up with two overdrafts, one on each :rolleyes: but at least i tried...

winkle1

I have an ISA, a savings account and a current account with first direct.

I have an ISA (which is now empty from last year - used the money to pay off my HSBC loan), 2 current accounts and a credit card with HSBC (balance 0)

what do you think I should do?

immoral_angeluk

winkle1 wrote: »

I have an ISA, a savings account and a current account with first direct.

I have an ISA (which is now empty from last year - used the money to pay off my HSBC loan), 2 current accounts and a credit card with HSBC (balance 0)

what do you think I should do?

Well I'd definately cancel the credit card.
Then I would get the info to compare all the accounts and then choose the best one baring in mind interest rates, charges etc then close the others unless you want to keep one open for something specific.

Sus1e

I have 2 bank accounts - one is for the household expenses (which my wages goes into) and another one which gets a set amount each month for "spends" (i.e. fun things like new shoes!! )

This suits me because if the money isn't in my "Ladies nice things" account I am not allowed to buy what I want until the next months payment. It helps because I have a set amount which I can spend on treats.

Storm

I personally have 3 accounts - my 'main' bank account, a 2nd current account for bills, and an instant access ISA where I put £100 a month for car costs.

As it's the start of the tax year, unless you've only just opened one of the ISAs have a look around for the best deal for what you want it to be (i.e. instant access). What do you use all the different accounts for at the moment?

Oh, and as IA says, def cancel the CC!

Snaggles

Just bear in mind that if you decide to keep the first direct current account, you'll also need to keep the savings account open to avoid their monthly account fee. I don't think there's a minimum balance that you have to keep in it though.