Piggybanking Setup, What Bank Accounts?

raw

Hi,

I have just bought my first home and am looking to try and get off to a good start by setting up some new bank accounts using the piggybanking technique so setting up standing orders for various accounts for different purposes ie mortgage/ bills and another one for holidays etc.

I currently have one current account, I have also just applied for one of the M&S 0% credit cards(haven’t got this yet, just know that I have been accepted).

All I am looking for is some advice on which type of bank account to open, I am ideally looking for an account that will not look or affect my credit rating as I am worried things will not be looking good if I am applying for a lot of accounts with overdrafts, with this in mind should I just be looking at a basic bank account ie no overdraft?

Should I be looking at current accounts or savings accounts?

Or should I be looking at cashback cards like the Barclay's one?
Or the Santander 123 to pay for DD's? to try and earn from my transactions?

Is it better to have an overdraft in case of any banking errors?

Sorry if these are dumb questions. Thanks for any advice!

Chrisblue1962

Hi,

Here are two accounts / ideas that may help you with budgeting, piggybanking and budgeting.

1. Yorkshire Building Society Cash Transactor account - it's a savings account and doesn't come with a debit card , only a cashpoint card. BUT you are allowed to operate Direct Debits and Standing Orders from it. I have my salary paid into this account and use it for Bills only, keeping Personal spending in another account.

2. Principality Building Society online e-Saver account - with this account you can set up separate savings pots all under a single account - great for Piggybanking.

3. Personal spending - you could use your current account for this or if you really want to be disciplined, get your bank to reduce your overdraft to zero so you can't spend what you don't have .

Hope this helps and Good Luck.