5th Bank Account - Eligibility?

Maureen43

Hello All

I currently have four bank current accounts. One is my "real" bank account, and the others are all effectively savings accounts.

I'd like to open a 5th as the rate is good but I'm worried about being rejected, although I have never been rejected before. I just wonder if a 5th account could be the straw to break the camel's back, so to speak.

I see Martin has loads of eligibility checkers but none are specifically for current account applications.

Can anyone advise?

Thanks
M.

eskbanker

There's no specific magic number and plenty of posters on here (including yours truly) have many more than five current accounts, so don't worry yourself on that front.

Having said that, the usual note of caution applies - you'll be credit-checked when opening each one, and piling up a lot of credit checks in a short period of time can ring alarm bells for prospective mortgage lenders and the like, but one application here and there isn't a cause for concern....

System

No offence, but why would you want to have that many accounts?

Kim_13

I have 5 (previously 6) never rejected for any. 4 were opened within a 12 month period. Many posters here have more than that, well into double figures.

It's advisable to leave a 6 month gap if you have made several recent applications. Always ask for no overdraft unless you specifically want one because of a free offer etc.

bigadaj

There's no limit, I've currently got thirteen with nine banks, generally for interest, cashback, perks etc

I've not been rejected as yet but have had one switch not go through, some banks are more picky than others, HSBC can be a pain for example.

eskbanker

himynameisaaron wrote: »

No offence, but why would you want to have that many accounts?

As touched on by previous posters, there are various reasons:

Savings interest - less so now, but not long ago, there were plenty of current accounts offering 3-5% interest, which is comfortably in excess of what you'd earn in traditional savings accounts. Even though these are more often now in 1.5-2% territory, that's still better than instant access savings accounts.

Switching incentives - a number of banks offer one-off joining bonuses if you switch your current account to them. There are typically various hoops to jump through but it can be quite lucrative to do this repeatedly.

Access to regular savers - most of the leading 5% regular savings accounts are only available to holders of current accounts at the relevant institutions.

Cashback/rewards - as well as (or instead of) paying interest, some current accounts pay holders small amounts of cashback for direct debits to specified utilities or for using debit cards, etc.

surreysaver

In the last 2 months, requiring credit checks, I have opened 11 current accounts, one credit card and applied for another current account which I was accepted for but did not proceed with. I was also unsolicitly offered as part of one of these applications a 0% purchase and balance transfer card with a 0% fee and 0.5% cashback with a £7k limit. Before applying for these I already had 1 current account, 2 credit cards, a mortgage, mobile phone contract and not sure what else on my credit file. I have been rejected for nothing.

zerog

If your credit report is generally OK, you are very unlikely to be rejected for current account applications if you don't ask for overdrafts.

The only picky bank, as already mentioned in this thread, seems to be HSBC (which includes First Direct and M&S).

EachPenny

himynameisaaron wrote: »

No offence, but why would you want to have that many accounts?

No offence taken. We're the ones earning higher rates of interest, cashback, and switching incentives - as eskbanker explains. Feel free to join us

System

EachPenny wrote: »

No offence taken. We're the ones earning higher rates of interest, cashback, and switching incentives - as eskbanker explains. Feel free to join us

I will.

Barclays Blue Rewards sounds interesting, as you receive £7 a month which adds up to £55 a year. Whether they're are better reward accounts out there I don't know

eskbanker

himynameisaaron wrote: »

I will.

Barclays Blue Rewards sounds interesting, as you receive £7 a month which adds up to £55 a year. Whether they're are better reward accounts out there I don't know

Not sure how you get to £55/year from £7/month but as you have to pay £3/month for this account you only actually earn a net £4/month, i.e. £48/year by my maths!

Anyway, for other reward accounts, see the comparison at http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#cashback