Is there a limit to the number of Current Accounts you should have?

zstretton

Hi,
OK so I have a decent amount of money that I want to maximise my savings on. I'm reluctant to put it into a savings account because the interest rates are rubbish in comparison to the current account rates currently being offered.
I already have a Santander 123, a TSB Plus account and a Halifax Reward Account. I am planning on opening the following in addition:
1 x Club Lloyds (5000 @ 4%)
3 x Bank of Scotland (5000 @ 3%)
1 x Nationwide FlexDirect (1000 @ 5%)
2 x Tesco Current Account (3000 @ 3%)
and maxing out their allowance for earning interest in order to maximise my money but I'm not sure if there's any reason why I shouldn't do this in terms of credit ratings etc. This would leave me with effectively 10 Current Accounts, is this an issue?

Any advice would be appreciated
Many thanks

coyrls

Well it would be an issue for me. For me the reward is not worth the effort of setting up the direct debits, standing orders etc. and constantly monitoring balances and interest rates on 10 accounts but if that's the sort of thing you enjoy then it may be worth it for you.

Futuristic

Yes that's fine, some here have 30+. Being lazy is the only excuse if you have spare cash or old isas lying around on low interest and you know their are better alternatives.

It takes a minute or two to check each account every month and few minutes setting each one up initially.

Mobile apps mean you just login, check and log out if you want to check every month.

I'm happy to receive over £1,000/year with no risk and little work

Vortigern

The only limits are those set by the individual banks. eg Tesco=2, BoS=3 etc.

You seem to be aware of these limits

If you have a suitable partner you could add a few joint accounts.

Eco_Miser

Don't forget you can also get a considerable amount in regular savers, at 6%, 5% and 4%.

jimjames

coyrls wrote: »

Well it would be an issue for me. For me the reward is not worth the effort of setting up the direct debits, standing orders etc. and constantly monitoring balances and interest rates on 10 accounts but if that's the sort of thing you enjoy then it may be worth it for you.

It's great there are still people like you around as it means the offers are likely to remain for longer for those that are prepared make the effort.

It takes at least 10-20 hours a month to manage so it really is a lot of hassle and I doubt it's worth the 10p extra in interest I get but it keeps me busy.

colsten

jimjames wrote: »

It takes at least 10-20 hours a month to manage so it really is a lot of hassle

Chor blimey, wish I could do it as fast as you do

darkidoe

jimjames wrote: »

It's great there are still people like you around as it means the offers are likely to remain for longer for those that are prepared make the effort.

It takes at least 10-20 hours a month to manage so it really is a lot of hassle and I doubt it's worth the 10p extra in interest I get but it keeps me busy.

Why does it take 10-20 hours to manage it per month? The SOs and DDs should all be automated no?? Granted, I waste that much amount of time each month looking out for better deals and ideas to make my money work harder. :cool:

Aretnap

darkidoe wrote: »

Why does it take 10-20 hours to manage it per month? The SOs and DDs should all be automated no?? Granted, I waste that much amount of time each month looking out for better deals and ideas to make my money work harder. :cool:

Shhh... we don't want to let on that it's easy. The more people play the game, the less keen the banks will be to offer great interest rates on current accounts as loss leaders, so the fewer better deals will be available. So if anyone asks, it takes you ages as well, OK?

OTOH despite it taking me a at least 25 hours a day, this year I have made more in savings interest and switching bonuses than I've paid in mortgage interest. Which means that the banks are (collectively) paying for the privilege of lending me money. Which is rather nice of them.

saver861

jimjames wrote: »

It takes at least 10-20 hours a month to manage so it really is a lot of hassle and I doubt it's worth the 10p extra in interest I get but it keeps me busy.

huh? ... I'm not sure where you are getting the 10-20 hours a month. Did you mean minutes?

Getting them all set up is time consuming for sure and hassle - esp if you are doing the other halfs also!

However, once setup there is no ongoing monthly management other than logging in to check all ok. The only one I do manually is Halifax. As there is no interest paid on the balance, to get the £5 per month, the £750 minimum has to be paid in. I pay it in and take it out again in the same five minutes. All the rest are on a rotating standing order.

lynnejk

I think you're doing the right thing.


I don't have as much as you but do the same in my own small way. So long as you set up all the direct debits to fulfil the minimum on each account, and don't forget to check the dates, then just log into each one once a week to check all going okay.


If you have a look at Martin's over-view of banking and regular savings you might like to add a few regular savers and 'drip-feed' into them to earn a little more. He explains it really well.


Good luck
L