Is having 2 current accounts a good idea??

GTR_King

How many current accounts should you have?? I have Current & Savings A/C with HSBC..... I was thinking of having a Current A/C for bills/DD/Wages etc. So things like Mobile phone contract/Car insurance/Rent etc....(HSBC) Savings A/C for saving money for things I need....(HSBC) Linked with current account... Then open another current A/C with HSBC or a different bank.... So I Can buy things for myself e.g Nights out holidays PS4 Games DVDs etc... Is this a good Idea so I know what i can spend each month on my self etc... just don't know if it's a good idea or not

grumbler

Personally, I do have many accounts, but only because they offer some benefits like free insurance, higher interest rate, cashback etc. Otherwise I would be happy to have all my money in one account (up to FSCS protection limit).

However, many people find it easier to have numerous 'pots'.

So, it's a matter of personal preferences.
Two accounts with different banks are a norm just in case one bank's computer system 'melts down', that isn't uncommon.

just.me_3

It depends how you are and how you manage your money. If you're unable to work out how much of your balance you'll need for X, then yes it's probably a good idea.

I have 1 current account and 1 savings account. It works for me, I just budget and know that £x is coming out for insurance, rent etc. The rest is mine, which goes towards clearing my debts. I don't need 2 current accounts, but that's just me.

pmduk

You can have as many accounts as the banks will open for you. There are many people on here doing precisely the same as you.

GTR_King

I can manage my money really well.... Just want an account just for myself and will know how much I can spend that month etc... Then If i couldn't afford something would wait till next pay day... That All I would use it for... No need for an overdraft or any added features etc....

just.me_3

GTR_King wrote: »

I can manage my money really well.... Just want an account just for myself and will know how much I can spend that month etc... That All I would use it for... No need for over draft or any added features etc....

If that would work for you then go for it

Just be sure to check your accounts regularly to make sure the money is flowing in and out correctly and covering the bills and direct debits so you're not hit with charges.

grumbler

GTR_King wrote: »

I can manage my money really well.... Just want an account just for myself and will know how much I can spend that month ....

If you manage your money really well I don't see why you need a separate account just to see how much you can spend.

GTR_King

Thanks mate... I would make sure there is £100+£300 extra just to make sure they cover all bills etc... That way I Will know what I can spend etc.... Just an idea so will think about it...so it better to open A/C at different bank?? ......

just.me_3

GTR_King wrote: »

Thanks mate... I would make sure there is £100+£300 extra just to make sure they cover all bills etc... That way I Will know what I can spend etc.... Just an idea so will think about it...so it better to open A/C at different bank?? ......

If having separate accounts will help you manage your money even better and make you feel more comfortable in understanding what you have to spend then that can only be a good thing

It's not necessarily 'better' to open an account with another bank. As you're keeping your current account that you have, you won't be entitled to any switching rewards which some banks offer as you have to close your previous account when you move banks.

You can open a second current account with your bank if you want, or open one with a different bank. You just need to look at the current accounts on offer and find one that suits you. Assuming you've not had any problems with credit in the past, you should pretty much have a good chance of getting an account with any of the banks.

As I said before just make sure you monitor multiple accounts to make sure they are running okay and that you understand which account each direct debit is coming out of etc.

YorkshireBoy

GTR_King wrote: »

so it better to open A/C at different bank?? ......

Depends on whether you'd cope if HSBC's systems failed at some point.


What you should do though, unless your savings account is their regular saver, is move your savings! Why not kill two birds with one stone and use a TSB Plus account and make 5% AER on your cash before you spend it?


Just out of interest(!), what's the interest rate on your HSBC savings account?

GTR_King

Can't remember but just not fussed about interest rates just want general saver than I can put money into when ever i want