Multiple current accounts - which to close

tarab1986

Hi everyone,

I have 3 current accounts at present. 2 with barclays (one of which is an additions account which for £6.50 a month I get mobile phone and electronics insurance). The additions account is my main account I.e wages go into there.
The other barclays account is a normal current account - I opened it when living a as a student 10 years ago in a shared house to ensure that bills were paid out of it (everyone set up standing orders and I then made sure has and electric ect where paid. I still use the account for this purpose as I've been renting with friends ever since but now I'm looking into buying a house with my partner so this account is no longer needed.
I also have a natwest account that came with the lovely £2000 over draft that allowed me to accumulate debt as a student. I'm in the process of clearing this debt and will have done so in the next couple of months so this account will also be no longer needed.


Should I simply close down the extra barclays account and the natwest one? Part of me is reluctant to as it has the overdraft facility (Barclays addittions one only has a limit of £150).

or should I look to switch accounts and open something that offers a better deal? And if so should I sort the mortgage ect first or do it now as we won't be looking to get a AIP for another couple of months.

Any advice welcome

Thanks

Zanderman

Why do you feel a need to close one?

No point in closing an account if it doesn't charge a fee each month.

It may be useful in future, or could be switched for an incentive to another bank, without interfering with your other account(s) in use.

d70cw6

never close accounts that you dont need - switch them for £100s to another provider (first direct / halifax / M&S etc).

also, do you really find the £6.50 per month insurance to be good value?

SnowTiger

d70cw6 wrote: »

never close accounts that you dont need - switch them for £100s to another provider (first direct / halifax / M&S etc).

Good advice.

I have gathered quite a few current accounts over the years. They don't seem to have a negative affect on my credit rating. The dormant ones don't have an overdraft, so why should they?

It's prudent to check them from time to time.

I joined O2 (again) recently. Instead of using the Direct Debit details I gave them they decided to set up a new one on an old bank account I'd last used with them FIVE YEARS ago. Very naughty. I guess they linked accounts.

Payment failed, they suspended my mobile account and I received a snotty letter from my bank about ensuring I have enough money in my account to cover payments and threatening to charge me a fee.

I was abroad when this happened, however, surprisingly, it was easy to sort out. Well, at least, it appears to have been sorted out.

planteria

good advice from d70:)
from someone who has opened accounts specifically to move them for incentives

JimmyTheWig

Aside from the benefit of having accounts so you can switch for bonuses, I would always suggest having accounts with at least two different banks.
From time to time banks' systems go down. We've seen it a few times in the past few years. If you can't get money from one account it is useful to have money (or at least available credit) in a different account.

planteria

agreed. at least 2 current accounts and at least 2 credit cards:D.

cheexy

JimmyTheWig wrote: »

Aside from the benefit of having accounts so you can switch for bonuses, I would always suggest having accounts with at least two different banks.
From time to time banks' systems go down. We've seen it a few times in the past few years. If you can't get money from one account it is useful to have money (or at least available credit) in a different account.

I agree with you. My bank card got swallowed by the ATM on Wednesday and I know I would have been slightly angrier if I didn't have an array of cards to withdraw from while waiting for the bank to sort out a replacement card.

Paul_1977

I used to feel the need to close unused accounts, but now I just leave them open, they will stop sending cards out but as long as you put a bit in every 12 months I think they keep them open.

I set up low balance ext alerts just in case an old payment comes out I have forgotten about. Although Barclays have stopped the text service. Tight B%^&*(

tarab1986

If considering switching or closing do I need to be mindful of my upcoming mortgage application?

colsten

If you have no outstanding overdrafts on the accounts, they will make no difference so no point in closing them.

If you are switching, you might not want to apply for any overdraft (none needed), and not make your applications within 6 months of your planned mortgage application.