Extra bank accounts vs savings accounts

Iwani

Went into Natwest today to open a couple of extra bank accounts to use for keeping certain pots of money aside, eg. a car maintenance fund & a Christmas/presents fund. I already have a few accounts with Nationwide alongside my main one that I use for various things I like to keep separate, like certain bills, etc.
Anyway, I didn't think I was doing anything out of the ordinary, in fact I know I've read about lots of others on here having a similar set up.
The woman looked at me like I had two heads when I explained what I wanted and why. :eek: And I think I've had a similar reaction from Nationwide in the past, though they happily set them up for me.
The bank lady did however ask why I didn't just set up savings accounts instead, and I didn't really have a good answer for that one so wandered off to think further.

So - thoughts? Does it matter if I use basic bank accounts or savings account for this? What do people usually do? And am I the only one to get this reaction - I didn't think it was that strange a request??

innovate

Use the instant access accounts that pay most interest. In years passed, that was savings accounts. Now it is current accounts (albeit not Natwest ones).

gjs1701

I have 3 savings accounts for various things like that. There is no reason why you shouldn't use basic accounts - but even a little interest is better than non - so I use easy access savings accounts.

chickenboy

I can see why she looked at you as if you had 2 heads...

WHY are you in Natwest???!?! They won't pay you any interest on your current account or their savings accounts! Get yourself over to Santander, Nationwide, Lloyds, TSB or Bank of Scotland and you can have multiple accounts all paying 3-5% interest!

Iwani

chickenboy wrote: »

I can see why she looked at you as if you had 2 heads...

WHY are you in Natwest???!?! They won't pay you any interest on your current account or their savings accounts! Get yourself over to Santander, Nationwide, Lloyds, TSB or Bank of Scotland and you can have multiple accounts all paying 3-5% interest!

:oBecause they were the only one walkable to in my lunch hour.
Cheers for those suggestions though, I'll set a couple up tonight!

Thanks for the replies.