Basic bank account as secondary account?

Gosh_Darnit

Hi, first time poster, long time lurker.

I currently have a full Barclays current account (Additions something or other) which I use for all of my banking: salary goes in, direct debits come off, savings go out, debit card is used for purchases.

I've recently realised that I'm a bit of an impulsive spender (!) so I was looking at opening a basic bank account with Natwest (which comes with a Visa Debit card but no credit facilities, e.g. overdraft) to transfer a monthly 'allowance' into. I think this would really help me with budgeting and hopefully curb the impulsive streak I've developed this past year. It would also be great not to have page after page of 'Amazon... £2.75', 'PayPal... £0.99' (or whatever) on the statements for my main bank account every month!

Is this a valid use for a basic bank account or are they solely designed for people who cannot get a regular current account? Also, would opening a basic account negatively affect my credit (either externally, with the CRAs, or internally, with Barclays and/or Natwest)?

Finally, if this worked as I hoped, I would probably be interested in opening further basic accounts at other banks (e.g. Lloyds, HSBC) - one for each type of expense. Again, would this be allowed and/or affect any external or internal credit ratings?

Thanks in advance for any thoughts!

CherlokHomes

Not entirely sure you can just apply for a basic account I thought you apply for an account and be scored and if it comes back with a basic account then that's what you get or current account.

Gosh_Darnit

CherlokHomes wrote: »

Not entirely sure you can just apply for a basic account I thought you apply for an account and be scored and if it comes back with a basic account then that's what you get or current account.

Thanks for your quick response. I'm not sure about all banks but the basic accounts I've looked at can definitely be applied for directly: Natwest online, Lloyds and HSBC by post.

Excellent signature, btw.

Jamie94

Gosh_Darnit wrote: »

Hi, first time poster, long time lurker.

I currently have a full Barclays current account (Additions something or other) which I use for all of my banking: salary goes in, direct debits come off, savings go out, debit card is used for purchases.

I've recently realised that I'm a bit of an impulsive spender (!) so I was looking at opening a basic bank account with Natwest (which comes with a Visa Debit card but no credit facilities, e.g. overdraft) to transfer a monthly 'allowance' into. I think this would really help me with budgeting and hopefully curb the impulsive streak I've developed this past year. It would also be great not to have page after page of 'Amazon... £2.75', 'PayPal... £0.99' (or whatever) on the statements for my main bank account every month!

Is this a valid use for a basic bank account or are they solely designed for people who cannot get a regular current account? Also, would opening a basic account negatively affect my credit (either externally, with the CRAs, or internally, with Barclays and/or Natwest)?

Finally, if this worked as I hoped, I would probably be interested in opening further basic accounts at other banks (e.g. Lloyds, HSBC) - one for each type of expense. Again, would this be allowed and/or affect any external or internal credit ratings?

Thanks in advance for any thoughts!

Wouldn't it be easier to just ask Barclays to downgrade your existing account?
(Barclays basic account is called a Cash Card Account)

Having 2 or more accounts to worry about will probably not ease your financial management issues.

Gosh_Darnit

Jamie94 wrote: »

Wouldn't it be easier to just ask Barclays to downgrade your existing account?
(Barclays basic account is called a Cash Card Account)

Having 2 or more accounts to worry about will probably not ease your financial management issues.

Thanks for your reply.

I love having a full current account with overdraft etc, though!

In fairness, I don't really have any trouble with financial management; I never spend money that I can't afford. I just think a physically separate account that I could transfer disposable income into would help curb any impulsiveness.

Jamie94

Gosh_Darnit wrote: »

Thanks for your reply.

I love having a full current account with overdraft etc, though!

In fairness, I don't really have any trouble with financial management; I never spend money that I can't afford. I just think a physically separate account that I could transfer disposable income into would help curb any impulsiveness.

Have you considered a regular savings account?

Or even a notice account? That will curb your impulsiveness to spend any spare cash you have and earn you interest too

Smithy7876

AFAIK there is no issue with this at all.

Effectively I do the same thing, I have one account that my wages get paid into, personal DD's come out of (ie Mobile phone) and where I keep my personal spend.
I then have another account where the mortgage and other household expenses come out off which I have a standing order going into so everything is split that way (this one is just a basic account)

PDF

Be a bit careful with a basic account, some financial establishments well put a CPD credit policy decline on your internal file if you have a basic account with them.

Why not open up an account with someone that gives you a joining incentive (Halifax, FD) and just use that as a 2nd account. You don't have to ask for credit facilities on your second account.

dr_adidas01

PDF wrote: »

Be a bit careful with a basic account, some financial establishments well put a CPD credit policy decline on your internal file if you have a basic account with them.

Why not open up an account with someone that gives you a joining incentive (Halifax, FD) and just use that as a 2nd account. You don't have to ask for credit facilities on your second account.

If you have a basic account a CPD isn't going to make any difference as a basic account by its definition doesn't offer any credit facilities.

CPD is a Lloyds thing other banks call it something different.

Like many others on here I have an account where money is paid in, one where all my direct debits (Santader 123 account to get cash back on the qualifying ones) get paid from and a separate account for my spending money.

There will be no problem about opening a basic account with Natwest if that's what you want to do.

Archi_Bald

dr_adidas01 wrote: »

If you have a basic account a CPD isn't going to make any difference as a basic account by its definition doesn't offer any credit facilities.

But it could be a killer sometime in the future, e.g. if you ever want a proper current account or a mortgage etc. The CPD can stick around forever

PDF

Archi bald, that's exactly what I was referring to, if you want a mortgage/loan/CC with your own bank and have a standard and basic bank account, you may well get declined before a credit search is even conducted. There are a few threads on the Credit card forum about this.