Do you really need a Current Account ?.

YorkshireBoy

jennifernil wrote: »

If the savings are "only" £20k, you will not have maxed out all the available interest paying current accounts anyway

Indeed. I believe £51.5K is the max total for 3-5% paying current accounts, and £136.5K is the max if there are two of you.

so you could even just designate one for "using" and keep a lower balance in it to remain under the cut off point for interest.

Probably the best for this is Tesco, since it's the lowest paying account with no minimum balance for the (3% AER) interest rate.

jennifernil

Ryan101 wrote: »

I actually have one off these anyway, and have 2 DD's but only keep £10 in it, I suppose I could put the surplus in there ?.

You could, but there is no point as I assume you are already getting the reward?

RobTang

You know interest is calculated daily not monthly there's no interest benefit from shifting around money.

CLAPTON

Ryan101 wrote: »

This is hypothetical, but I am wondering if in practice this situation would work.

Let’s say a person has £20k in savings, Spread around various bank current accounts paying between 3% - 5% such as TSB, Lloyds Club, Bank of Scotland Vantage etc.

And let’s say that person also has a Credit Card and a Savings account with a different bank with whom he has no savings, the savings account has a card and he has online banking, and he can do transfers / Pay bills online from his savings account.

Could he just make do with the Credit Card and Savings card, so all purchases would be on the card, and when he needed cash out he could just use his saving account card, therefore completely by passing the need for a current account ?. The Credit Card would be paid in full each month from a Transfer from his Savings account, and any salary credits etc would be paid directly into his savings account.

Could it be done ?, and you would not need a current account ?.

me thinks you are a little confused how these things work.

colsten

YorkshireBoy wrote: »

Indeed. I believe £51.5K is the max total for 3-5% paying current accounts, and £136.5K is the max if there are two of you.

True, plus there are various the Regular Savings accounts that could be dripfed if you really do want to hold that much in cash.

RobTang wrote: »

You know interest is calculated daily not monthly there's no interest benefit from shifting around money.

There is, if you have maxed the balances you get interest paid on.

badger09

YorkshireBoy wrote: »

Indeed. I believe £51.5K is the max total for 3-5% paying current accounts, and £136.5K is the max if there are two of you.Probably the best for this is Tesco, since it's the lowest paying account with no minimum balance for the (3% AER) interest rate.

That might be the limit if you are starting the current account merry go round today.

However, not so long ago, it was possible to open multiple Santander 123 accounts, and probably others which I've forgotten so the limit for some of us is even higher

PS I know the arguments about holding too much cash - but don't worry, Archi Bald is going to look after mine for me :rotfl:

LplateSaver

Forgive me if this is a stupid question but is it possible to open all these accounts in the same year, or would it lead to too many searches and a decline? I have four searches on my account (two current account, two cc) from last 5 months and it's saying it's too many.. I've opened two tsb and halifax would be interested in going for Lloyds next or all if possible..

YorkshireBoy

LplateSaver wrote: »

Forgive me if this is a stupid question but is it possible to open all these accounts in the same year, or would it lead to too many searches and a decline? I have four searches on my account (two current account, two cc) from last 5 months and it's saying it's too many.. I've opened two tsb and halifax would be interested in going for Lloyds next or all if possible..

Who/what is saying?


It wouldn't bother me to apply for them all in the space of a month or so...but then again, I don't need credit* (for BT purposes) or a mortgage/re-mortgage in the near future.


* Nor do you if you have enough cash to fill them all!

LplateSaver

YorkshireBoy wrote: »

Who/what is saying?


It wouldn't bother me to apply for them all in the space of a month or so...but then again, I don't need credit* (for BT purposes) or a mortgage/re-mortgage in the near future.


* Nor do you if you have enough cash to fill them all!

Second free experian trial is saying that

I meant the ones mentioned by the OP. Tsb accounts are overfilled, would fill Llyods current account mid next month, then I can use regular saver for same interest if I'm reading right? Anyway Id need the Bos ones by early December, mid January and march but am hoping to apply for a mortgage in August.

OhReally_2

Ryan101 wrote: »

This is hypothetical, but I am wondering if in practice this situation would work.

Let’s say a person has £20k in savings, Spread around various bank current accounts paying between 3% - 5% such as TSB, Lloyds Club, Bank of Scotland Vantage etc.

And let’s say that person also has a Credit Card and a Savings account with a different bank with whom he has no savings, the savings account has a card and he has online banking, and he can do transfers / Pay bills online from his savings account.

Could he just make do with the Credit Card and Savings card, so all purchases would be on the card, and when he needed cash out he could just use his saving account card, therefore completely by passing the need for a current account ?. The Credit Card would be paid in full each month from a Transfer from his Savings account, and any salary credits etc would be paid directly into his savings account.

Could it be done ?, and you would not need a current account ?.

My great gran has lived for the last 80+ years without a current account, and I don't think she will be applying for one anytime soon.

So in answer to your question, you certainly don't necessarily need a current account.