One or Two accounts?

eskbanker

Ilona wrote: »

I don't think I am being smug at all, I just said what works best for me. So, post 3 says I should have two of everything in case one breaks down. My bank has served me well, I must have been with them for 40 odd years, never a problem. My computer is not linked to theirs, I don't do internet banking, so if they lose my money I would hope that they have contingency plans in place to reimburse me. I don't go to bed at night worrying if all my money might disappear. If that's smug, then so be it.

But the point of post #3 was all about contingency planning by not having all your eggs in one basket - it's all very well hoping that your bank has contingency plans and I'm sure they will (just like British Airways and the NHS do....), but there have been any number of high-profile service outages for many high street banks, which have affected customers' access to their funds or delayed automated payments, etc. Yes, everything was resolved eventually but those who've experienced unavailability issues like this realise the wisdom of having their own contingency plan so that they aren't dependent on one bank.

It's nothing to do with internet banking, linking computers or money disappearing, but you were saying that you only needed one account because you feel you're good at managing your money, so I'm just highlighting a counterpoint to that line of thinking. Of course you're perfectly entitled to your rationale of 'so far so good' but let's just hope that luck holds....

Ilona

lincsvape wrote: »

What do most people do?

Have one current account for everything - wages in, bill payments, shopping, going out? Etc

Or two current accounts, one for wages and spending and maybe one just for direct debits and bills which part of the wages get transferred into each month?

Sorry, I didn't see anything about contingency plans here. I just answered the question, one or two. I felt it would be useful to explain why I had one.

Ilona

Annie_Clark

Ilona wrote: »

I don't NEED another £500 a year, I have enough thank you. More money doesn't always bring happiness, I am lucky that I have an income that meets all my needs.

[..]

I am good at managing MY money, I have never been in debt, never had an overdraft, the only borrowings I have ever had is a mortgage, now that is gone. My life is working out exactly as I planned it.

I think you're doing great. You're debt free and living within your means, and are happy with it. The number of bank accounts is completely irrelevant in your case. Ignore these people

takman

Annie_Clark wrote: »

I think you're doing great. You're debt free and living within your means, and are happy with it. The number of bank accounts is completely irrelevant in your case. Ignore these people

I think your on the wrong site if your recommending people to ignore advice which can save them hundreds of pounds a year and maximise the interest they can get on their savings.

They don't have to follow the advice but it should be seriously considered.

Also having more than one account is relevant for everyone. Just search online for stories of people not being able to access money in their account due to bank failures, or sometimes even due to payments that trigger fraud investigations.

phillw

takman wrote: »

Also having more than one account is relevant for everyone. Just search online for stories of people not being able to access money in their account due to bank failures, or sometimes even due to payments that trigger fraud investigations.

Having more than one account doesn't solve anything, it has to be more than one account with money in it. I never really need cash, so I don't worry that much about it though.

takman

phillw wrote: »

Having more than one account doesn't solve anything, it has to be more than one account with money in it. I never really need cash, so I don't worry that much about it though.

Well if you have a second account then it might as well be a high interest account so you will put your savings in it to earn a better rate of interest.

The chance of you needing money and not being able to access it is very low but considering that you get a lot of benefits from multiple accounts then you might as well have one.

If you fill up your car at the fuel station and go to pay and your only card is rejected then you will then very much wish you had another account. It may be very unlikely but it has happened to people.

Ilona

Annie_Clark wrote: »

I think you're doing great. You're debt free and living within your means, and are happy with it. The number of bank accounts is completely irrelevant in your case. Ignore these people

Thanks Annie, I am. I don't know why takman is getting his knickers in a twist.

Ilona

Pjsmith76

About 4 solo accounts (everyday, other business, money to one side and car) and 3 joint account (mum, Mrs and a defunked one with the Mrs)
And a savings account.
Multiple providers.

NelliePie

Not sure how relevant our situation is but for what it's worth my partner and I have our own individual current accounts that our wages get paid in to. From this we each transfer a set amount monthly to a joint current account which takes care of bills, food etc. What ever's left we can have for our own spending (we try not to spend much) and anything left at the end of the month goes into a joint saver. This works for us as we both earn roughly the same so can contribute the same to the bills and we have roughly the same attitude towards spending/saving - we both are as frugal as we can reasonable be without restricting our lifestyle unnecessarily.