How many bank accounts?!

Mr_Curious

Hi Guys,

I'm just checking in for some advice regarding my situation and bank accounts.

I have a Santander account (3%) maxed out. I have a TSB account(5%) maxed out. I have a regular saver with FD(6%) and I have just set one up with TSB(5%), both filling the max possible. I do still have some money kicking around not earning me anything so I am thinking about opening a Nationwide account for the 5% (only for the first year).

However I will hopefully need the cash at some point in the near future to buy a house. I have obtained an AIP and just on the look out for something suitable in my area.

My question is what effect (if any) will opening 2 bank accounts in quick succession have on the final mortgage decision? Obviously its better to have my money work for me but on the other hand I don't want it to have an adverse impact on the house situation.

I hope this makes sense.

Any suggestions/advice?

Thank you!

:A

oldfella

as long as the current accounts dont go into overdraft it will make no difference

badger09

Lenders also like to see stability, so I would maintain 'normal' current account activity on a long standing account, while using any number of others for savings .

TomJ

You might consider a Club Lloyds account; 4% on balances up to 5 grand (as long as you pay 2 DDs out each month) and the £5 per month refunded as long as you pay in £1500 pm. If your 123 acct is maxed you could open this and the Nationwide Flexdirect, max them out and meet the funding requirement with ease while keeping the 123 above 3k to get 3% on what's left in there. If you decide to open only one of the Lloyds and Nationwide, and DDs aren't an issue, I'd go for Lloyds; 4% of 5000 is more than 5% of 2500, plus you get "lifestyle benefits" (I've gone for 6 free film tickets) and access to a 4% regular saver.

Another option is to open an M&S account to get their 6% RS. Note it, like the First Direct, has to be left till the 12 month point to get the 6%, whereas with the Lloyds and TSB ones you can withdraw money without interest penalty (but can't replace it beyond the normal monthly payment).