Security and paying by card

Zyx

I have quite a few current accounts but never considered which I should be using to pay for purchases.

Having thought about it now would it be safer to use only one account that is (mainly) empty to buy things online? That way if the site is hacked and your account details are stolen it does not affect you as your account has such a low amount on it after all.
If I used another account such as the Santander 123 where £20k are stored it could be used and I'd lose the money.

Am I right or am I missing something?
Please don't talk about being able to get the money back if it was lost as this is not the point.

grumbler

It's best to use a cashback CC for online shopping.

Gizmo247

I always pay for things with credit card, if possible and a monthly allowance bank account for anything else (low balance, not my 123).

Banks tend to take the public view that YOU have had money stolen from YOUR account (like it is stored in shoe box under the counter - i.e as RBS still do) - but in really terms money taken from your account illegally is stolen from the BANK so it makes little difference on the size of your balance.

In some way, I think the larger the amount stolen then the bigger the diversion from normal banking behavior and the quicker you get your money back.

Dird

This is something I'll need to consider soon. With Lloyds I have my current account, ISA & online account. Money can only be sent out from the CA so I tend to only keep £100-500 in it depending on the time of the month.

Now that I'm planning on using the the interest rates in CAs I'll probably use Halifax (unless/until I decide to add a credit card) for online payments as I'll only be keeping £1-5 in there each month besides money transferred in for Amazon purchases etc

polymaff

Dird wrote: »

This is something I'll need to consider soon. With Lloyds I have my current account, ISA & online account. Money can only be sent out from the CA so I tend to only keep £100-500 in it depending on the time of the month.

Now that I'm planning on using the the interest rates in CAs I'll probably use Halifax (unless/until I decide to add a credit card) for online payments as I'll only be keeping £1-5 in there each month besides money transferred in for Amazon purchases etc

Purchase on a Credit Card: Section 75 protection, Interest-free credit etc. Must be the preferred solution - unless you've got something we don't know about.

I'd guess that the majority of MSEers on this board treat bank accounts as sources of relatively high interest on instant access funds - not as means of purchase

Dird

polymaff wrote: »

Must be the preferred solution - unless you've got something we don't know about.

My parents got into tons of debt so I avoid borrowing except for necessities (student loan + mortgage). Maybe I'll look into the santander CC at some point when I'm convinced the banks aren't gonna trip me up to pay 20% interest

colsten

Dird wrote: »

Maybe I'll look into the santander CC at some point when I'm convinced the banks aren't gonna trip me up to pay 20% interest

Only time any credit card provider "trips you up" (as per the T&Cs you agreed to) is if you choose not to pay off your credit card in full (or minimum on 0% cards) each month.

Please read up about credit cards. http://www.moneysavingexpert.com/credit-cards/?_ga=1.23941370.1970917942.1424978406

polymaff

Dird wrote: »

My parents got into tons of debt so I avoid borrowing except for necessities (student loan + mortgage). Maybe I'll look into the santander CC at some point when I'm convinced the banks aren't gonna trip me up to pay 20% interest

That'll be a DIY job if you do. Don't pin it on the banks!

The Santander 123 is not the highest paying rate by any means, but the package (bank account(s) plus CC) is good. Interest of 3% on £3-20k, cashback on Council Tax, Supermarkets, fuel - house and car, fares, 5% off at Waitrose now and then. Very easy to cover the fees.

Dird

colsten wrote: »

if you choose not to pay off your credit card in full (or minimum on 0% cards) each month.

What if the end of the month (DD) falls on a Saturday & so rolls into the next month (so you didn't pay it off that month)?

polymaff wrote: »

The Santander 123 is not the highest paying rate by any means

Only 1 being mentioned as better is American Express but only pays 5% for a few months

colsten

Dird wrote: »

What if the end of the month (DD) falls on a Saturday & so rolls into the next month (so you didn't pay it off that month)?

you shouldn't worry. If you instruct the CC provider to take your money on or before the date they want the payment [by DD], they will take it when it is due. All you need to worry about is that you have the right amount of money available in your account on that date.

Have you already read the CC article I linked to? Took me a couple of weeks to get to grips with it when I first came across it.

Dird wrote: »

Only 1 being mentioned as better is American Express but only pays 5% for a few months

You must be confusing American Express with another company. America Express do not pay any interest, they just charge it, and a lot more than 5%, on their credit cards.

grumbler

Amex do offer a card paying 5% cashback during first 3 months.