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Which combination works best?
Miami
Posts: 70 Forumite
Hi,
Apologies in advance for the long post!
I've banked with NatWest since I was 16. I can't remember the name of the account I opened, but it was for under-18s, had a debit card and possibly allowed direct debits / standing orders, though I'm not sure about the last one. After I turned 18, they upgraded me to their current account. About two years ago, I asked them for a second, "basic, no frills account" for the sole purpose of paying direct debits. I set up a standing order to coincide with my income so when I got paid in my first current account, the money would go into the second account and pay my bills, leaving me free to spend the money in my first account with no worries about anything bouncing. My second account is also a current account -- I didn't know about NatWest's Step account at the time, or I'd have asked for it by name, but the Step was the kind of account I had been hoping for -- clearly NatWest and I have different ideas on what counts as "basic".
However, I've now decided to leave them and join a different bank (not sure which one yet) -- I decided they were well and truly taking the biscuit when I went in to set up a standing order and there was a computer glitch (the account I wanted to pay into wasn't recognised), the man I was dealing with looked at the details I had, saw that it was a NatWest account and then proceeded to do a customer search and accessed the other account without moving the computer screen, so I ended up seeing my payee's balance. :eek:
Anyway, I'm concerned about having two current accounts with the new bank, which is what I have now, because I think having "available credit"(?) would negatively impact my credit score. I'm fairly sure I could get a current account with no problems, so what I'm thinking is:
1) Transfer second current account from NatWest (for bills) to new bank, order chequebook and then leave the account alone.
2) Close first current account with NatWest and set up a brand new basic account (as I don't think you can transfer from a current to a basic?) for income and day-to-day spending (and set up a standing order so bill money is diverted to the current account).
With the new bank, I could use the current account to write cheques when needed (planning on applying for a driving licence soon as a form of ID, so will need a cheque for DVLA) and use online banking to transfer the money for the cheque to the current so that the money's there. If the basic account can't be used for online purchases, I can easily use online banking to transfer the money to the current and use that card -- my priority is a bank with good customer service!
My only concern is, is this the best solution? Would I be better off using the current for day-to-day and the basic for the bills? Or is there a different option that I simply haven't thought of that would be easier?
Any advice would be appreciated -- thank you!
Apologies in advance for the long post!
I've banked with NatWest since I was 16. I can't remember the name of the account I opened, but it was for under-18s, had a debit card and possibly allowed direct debits / standing orders, though I'm not sure about the last one. After I turned 18, they upgraded me to their current account. About two years ago, I asked them for a second, "basic, no frills account" for the sole purpose of paying direct debits. I set up a standing order to coincide with my income so when I got paid in my first current account, the money would go into the second account and pay my bills, leaving me free to spend the money in my first account with no worries about anything bouncing. My second account is also a current account -- I didn't know about NatWest's Step account at the time, or I'd have asked for it by name, but the Step was the kind of account I had been hoping for -- clearly NatWest and I have different ideas on what counts as "basic".
However, I've now decided to leave them and join a different bank (not sure which one yet) -- I decided they were well and truly taking the biscuit when I went in to set up a standing order and there was a computer glitch (the account I wanted to pay into wasn't recognised), the man I was dealing with looked at the details I had, saw that it was a NatWest account and then proceeded to do a customer search and accessed the other account without moving the computer screen, so I ended up seeing my payee's balance. :eek:
Anyway, I'm concerned about having two current accounts with the new bank, which is what I have now, because I think having "available credit"(?) would negatively impact my credit score. I'm fairly sure I could get a current account with no problems, so what I'm thinking is:
1) Transfer second current account from NatWest (for bills) to new bank, order chequebook and then leave the account alone.
2) Close first current account with NatWest and set up a brand new basic account (as I don't think you can transfer from a current to a basic?) for income and day-to-day spending (and set up a standing order so bill money is diverted to the current account).
With the new bank, I could use the current account to write cheques when needed (planning on applying for a driving licence soon as a form of ID, so will need a cheque for DVLA) and use online banking to transfer the money for the cheque to the current so that the money's there. If the basic account can't be used for online purchases, I can easily use online banking to transfer the money to the current and use that card -- my priority is a bank with good customer service!
My only concern is, is this the best solution? Would I be better off using the current for day-to-day and the basic for the bills? Or is there a different option that I simply haven't thought of that would be easier?
Any advice would be appreciated -- thank you!
SPC #080
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Comments
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I think you are overcomplicating matters. Just get yourself two good interest paying current accounts and take it from there.
You should read up about credit scores as there is no evidence that simply having 2 current accounts will negatively impact your credit files. Many people here have more than a dozen current accounts and no problem with their credit worthiness. Of course you must manage the accounts well, i.e. not go into unauthorised overdrafts, and you must not have unpaid items. But that is in your own interest anyway.
Anyway, I'm concerned about having two current accounts with the new bank, which is what I have now, because I think having "available credit"(?) would negatively impact my credit score.
The DVLA accepts payment by card or bank transfer. A cheque won't count as proof of ID.With the new bank, I could use the current account to write cheques when needed (planning on applying for a driving licence soon as a form of ID, so will need a cheque for DVLA)0 -
You could keep your oldest account with NatWest and transfer the other to another provider?
Santander, Halifax, First Direct and M&S seem to the favourites at the moment.
In any case, It's always best to have 2 accounts with 2 different banking groups - due to IT issues or should one group decide it doesn't want to do business with you.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
makes little sense
there are no benefits in having a basic a/c compared to having an ordinary a/c: basic account are for people with poor credit histories and not for 'normal' peopleEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
OP, you should not be mistaken, a basic account can get you into debt, just like a proper current account can, if you do not manage your money. There is not a simple advantage in having a basic account if you aren't forced into having one by a terrible credit record. Basic account holders are automatically associated with having, or having had, financial difficulties - is this how you want to be seen when you want to apply for a mortgage etc?0
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Archi_Bald wrote: »Basic account holders are automatically associated with having, or having had, financial difficulties - is this how you want to be seen when you want to apply for a mortgage etc?
That is somewhat extreme
People can choose a basic account or can be given one with limited history. Not all holders will have been naughty...
Basic accounts are also simply listed as Current accounts on credit files, so mortgages applications won't know the difference.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Thank you all for your advice. I had been concerned about multiple current accounts as I thought they might be seen as open lines of credit, but as that is not the case, it seems that the best option is to get two current accounts with a different bank (I regularly use online banking to manage the two so would prefer having the option to instantly transfer funds from one account to another). However, as I have a five-year-old account with NatWest, would it be worth keeping the older NatWest account active and closing the newer one? I've been thinking about taking out a credit card to build my credit -- I would be paying the card off in full every month, of course, so my idea is if I keep the older NatWest as a third account, I can transfer funds from my day-to-day account to the NatWest every time I use the credit card, so when the bill comes, all the money is in the one NatWest account to pay it off with.
I would like to stress that I have no intention of spending more than I can afford on the card and that my bank accounts are in the black.The DVLA accepts payment by card or bank transfer. A cheque won't count as proof of ID.
Ah, I believe we may have gotten our wires crossed. I meant that I was applying for the driver's licence to use as a form of ID (as a lot of places only accept a DL or passport) as opposed to using it to learn to drive. I'm going to apply for the licence with the paper form, not online, and last time I checked, the only way to attach payment to the paper form was A) postal order (approx £5-£10),
banker's draft (£10 fee from NatWest) and C) cheque, which is why I said I needed a cheque for the DVLA. SPC #0800 -
If you want a credit card I couldn't recommend Santander 123 enough.
It gives cash back on fuel, supermarkets and dept stores. We've made 100s from it.0 -
Ah, I believe we may have gotten our wires crossed. I meant that I was applying for the driver's licence to use as a form of ID (as a lot of places only accept a DL or passport) as opposed to using it to learn to drive. I'm going to apply for the licence with the paper form, not online, and last time I checked, the only way to attach payment to the paper form was A) postal order (approx £5-£10), banker's draft (£10 fee from NatWest) and C) cheque, which is why I said I needed a cheque for the DVLA.
Sorry if I misunderstood. Still, I am sure you can pay for your DL online (provisional licence), and by card at a Post Office for a DL renewal. I am pretty sure you can also pay for your driving test by card.0 -
If you want a credit card I couldn't recommend Santander 123 enough.
It gives cash back on fuel, supermarkets and dept stores. We've made 100s from it.
My mum banks with Santander and has no end of problems with them, I also have an old child savings account with them that I am not able to access at all despite the fact they send me letters advertising their 50+ life insurance claiming that I'm in my fifties... I'm in my twenties :mad: (It's my mum who is in her fifties; they have somehow listed her details in my name so neither of us can access the account as it's no longer in her name but my birth certificate quite clearly states I was born in the nineties :eek:)
Not to mention, I think you have to put quite a high amount in each month to reap the benefits?Sorry if I misunderstood. Still, I am sure you can pay for your DL online, and by card at a Post Office for a DL. I am pretty sure you can also pay for your driving test by card.
Unfortunately, I have change of name deed polls that the DVLA want to see before issuing a provisional licence, so the paper form is the less stressful option as I can't send those forms online. It'll be my first licence, so I won't be renewing, and as for a driving test, I think I might need some lessons first SPC #0800
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