Current account for savings: effect on credit file?

jrawle

I move my savings around each year to maximise the interest, and will usually open at least one new instant access savings account, one cash ISA and a fixed rate bond each year. I have no problem with this, or the search that goes on my credit file for identity checks.

However, savings rates are now very poor, and many people suggest opening current accounts for savings as they can pay much higher rates, e.g. Santander 123 or Nationwide.

My problem with this is that current accounts have credit facilities. If you have multiple current accounts and open new ones each year, these are going to appear on your credit file. Isn't there a risk that this could make credit more expensive? When I started my current mortgage, I was turned down for the two best deals on offer and had to go with the third best due to my credit history. As it happened it worked out rather well due to the unprecedented drop in rates (this was 2008) but ordinarily it would have lost me money. More expensive credit could quickly wipe out the gain from using a current account rather than a dedicated savings account.

I'm reluctant to use current accounts in this way, given that I'll probably want a new mortgage in the future to move to a bigger property. Is anyone else similarly concerned about opening multiple current accounts?

ChopperST

Its your total available credit and how you use it, relative to your income, that is more relevant to lenders, not how many accounts you have. Both my wife and I hold 123 accounts and flex directs and several credit cards for cashback and we were accepted for a 90% LTV mortgage.

Provided your house is in order then you've nothing to worry about. If you do open an account then you can always ask for no overdraft facility to be placed upon it which will be reported on your file...