Why have multiple current accounts?

eskbanker

Roseanne1 wrote: »

I am 99% certain there was a clause saying internal transfers aren't allowed and transfers from other B of S accounts would surely fall foul of this. Admittedly, I have been out of the loop for a while so did this change and if so when?

I don't recall any such clause in the BoS Ts & Cs and have been internally cross-funding multiple BoS Vantages for the several years I've had some, and receiving the expected interest accordingly.

However, while I'm 99% certain that there wasn't such a clause for BoS, it's obviously a moot point anyway in that it doesn't really matter what the Ts & Cs were in the past!

datlex

I have 6 accounts at present. 2 are for interest.

Other 4: 1 is a smile account to which my pay goes. 2 is a smile account from which most bills go. 3 is a credit card shadowing account, I spend on my card and transfer money from account 1 to pay for this. 4 is a rewards account which has two direct debits on.

Another reason for separate accounts for me is that I can still access funds if I need to when one bank is hit by a payment glitch.

TheShape

Roseanne1 wrote: »

Just a quick question. I was watching the Martin Lewis money show about savings into different current accounts to make the most of the higher interest rates. I notice he said that, for example, you can get 3 vantage B of S accounts and put up to £5,000 in each and get 3% interest in each account. He mentioned paying your salary into one, a standing order for the £1,000 from there into account 2 and then a standing order from there into account 3 and basically recycle this £1,000 between the 3 accounts.

I am 99% certain there was a clause saying internal transfers aren't allowed and transfers from other B of S accounts would surely fall foul of this. Admittedly, I have been out of the loop for a while so did this change and if so when?

I also have a First Direct account for the regular saver. If I pay £1,000 a month in there, I avoid the fee. It states that this £1,000 can't come from anothr FD account. I am almost sure at one time it used to be that transfers from HSBC and M&S bank did not count towards the £1,000 pay-in. Is this all in my mind or has this changed too?

Thanks.

There is no requirement for external funding of the BOS accounts. I checked the T&Cs yesterday.

You can avoid the First Direct monthly fee simply by having a savings account with them rather than having to fund it with £1000 p/m. The regular saver doesn't count but you can open another of their savings accounts and deposit £1.

While we're talking current account numbers. I currently have 14, all for interest/regular savers apart from one which is set up ready for a future switching incentive when one becomes available.

YorkshireBoy

TheShape wrote: »

...one which is set up ready for a future switching incentive when one becomes available.

DDs already in place? How many? I have 4 on 2 of my 'spares', just in case the next offers require more like Co-op did.

Paul_1977

These days I have two, one is my main account. Another just has a lump of my savings in.

Never wise to have all your eggs in one basket. Worst case if the bank goes bust, it would take a while for the government to repay your money. Better to have some money somewhere else in another bank.

Also sometimes accounts/cards can be blocked, or the systems go down.

TheShape

YorkshireBoy wrote: »

DDs already in place? How many? I have 4 on 2 of my 'spares', just in case the next offers require more like Co-op did.

Good point. It's currently set up with 2 DDs. I'll add another 2 so as to be better prepared. I missed the Co-op switch so am hoping it will become available again in the future.

Might even set up another so as to have a spare 'spare'.

GoldPlated

If you have more than one account you stand a better chance of getting some cash when the electronic systems crash. Remember that the banks do not have enough cash to pay everybody who has a deposit with them. You should also hold an emergency stash of cash at home ready for the next bank failure.

Paul_1977

GoldPlated wrote: »

If you have more than one account you stand a better chance of getting some cash when the electronic systems crash. Remember that the banks do not have enough cash to pay everybody who has a deposit with them. You should also hold an emergency stash of cash at home ready for the next bank failure.

When has a bank failed in the UK when it could not honour deposits?

I know Northern Rock came close.

Roseanne1

Thank you very much and to everyone else that answered.

I saw that about FD. I have an everyday saver, which the proceeds from my previous regular saver was paid into before I opened my new one. Does this count for avoiding the charge? Thanks again.

anotheruser

boliston wrote: »

A current account is normally free so why not?

Because the less companies have my details, the better.

With "hackings" becoming more and more popular, why some websites force you to create an account is beyond me. Especially if you choose no marketing info...