How much to keep in current account?

Buzzybee90

Evening everyone.

My boyfriend and I have three savings accounts, one each and one together.

We each have a current account and then a joint one and I have one for bills. We pay our remaining wages (after direct debits assigned to individual accounts) into our joint one, then pay the bills. Whatever's left at the end of the month goes into the joint savings account.

Basically, what do you think is a sensible amount to keep in our personal current accounts?

Hope that all makes sense!

Kayalana99

What like an emergency fund or a small amount incase the bills are more that month. I.e a phone bill going a few quid extra

getmore4less

What you really asking?

is it

how much spending money should I have?

Buzzybee90

getmore4less wrote: »

What you really asking?

is it

how much spending money should I have?

No. I am just asking how much I should have readily available, of course the savings can be moved around but on a card if I need it.

So I suppose an emergency fund but more, how much not in savings.. If that makes sense! Other than transport, food and stuff which comes from the joint acc.

Or should I just put as much as possible in the savings?

Hermia

I think it really depends how much you have and how much your monthly bills are. I keep a thousand in mine. It's just because I have now worked for two companies who have had pay roll blips where we didn't get paid. The employers refunded any charges, but it was still a right faff. It also means if I did forget about a direct debit/standing order or have an emergency I won't go into the overdraft.

Yorkie1

It also depends on how much the interest rates are. I have a Lloyds Vantage current account which pays 3% as I have £3k in it. There's no point in putting into a poorer interest rate savings account.

marisco_2

I keep the equivalent of 3 months salary in an emergency fund account. I built that up before I even considered setting up any savings accounts. My job feels quite secure but life experience has taught me that you never know what is around the next corner. Having easy access to it means that the interest rate is low, but to be honest that isn't my main concern with that account. Not the way to go about things for everyone but it works for me.

Once that was up and running I felt secure enough to look at long term savings options and investments, without fear of how I would cope if I lost my job, suffered ill health or had to cover the expense of a major emergency.

Buzzybee90

marisco wrote: »

I keep the equivalent of 3 months salary in an emergency fund account. I built that up before I even considered setting up any savings accounts. My job feels quite secure but life experience has taught me that you never know what is around the next corner. Having easy access to it means that the interest rate is low, but to be honest that isn't my main concern with that account. Not the way to go about things for everyone but it works for me.

Once that was up and running I felt secure enough to look at long term savings options and investments, without fear of how I would cope if I lost my job, suffered ill health or had to cover the expense of a major emergency.

I have ease of access to my savings accounts too but I see your point.

I currently have about £1200 in mine, but the bill account/ season ticket saving has a considerable sum too so I guess that's an emergency fund in itself! But renting most major property issues luckily don't affect me!

balletshoes

Buzzybee90 wrote: »

I have ease of access to my savings accounts too but I see your point.

I currently have about £1200 in mine, but the bill account/ season ticket saving has a considerable sum too so I guess that's an emergency fund in itself! But renting most major property issues luckily don't affect me!

if you have easy access to your savings account, then I don't think it matters which account you put your money in - so you might as well just carry on as you are, putting whatevers left from your spends account at the end of the month, into your savings account.

tinkerbell28

It all depends really. I'd say 1k min contingency. But then it depends how much you have in savings. How easy it is to access. How many 0% cards you have. So should the worst happen...you've got leeway between a real emergency and a redundancy/insurance payment.

Hermia

balletshoes wrote: »

if you have easy access to your savings account, then I don't think it matters which account you put your money in - so you might as well just carry on as you are, putting whatevers left from your spends account at the end of the month, into your savings account.

I agree, most of my emergency fund is in a savings account. I keep 1k in my current account more to cover admin errors and me forgetting what DDs/SOs I have this month errors or me needing to pay something in cash asap.