Minimising amount of current/savings accounts to reduce faff.

cattie

I've been considering downsizing all my accounts for a while now as I find it too confusing having an assortment & trying to keep track of when one needs to shift money for a better interest rate. Some people might enjoy this, but I find it a chore I also think it will make things a lot easier for people to sort out once I've popped off.

I aim to end up with just my current bank account, premium bond savings, S&S Isa & just a high street building society account.

kidmugsy

In sorting out an elderly relative's estate we found he kept quite a lot of cash in a current account earning no interest. My first thought was that this was daft. On second thoughts he was doing something that suited him. He didn't need extra income; why take on extra faff?

My main proviso is that after seeing IT troubles at RBS, TSB etc, I'd always want at least two current accounts, and three savings accounts. I'd expect to operate one of the latter online, one by phone, and one by passbook. That's probably enough diversification.

For the next few months Project Simplification will be underway, except for regular savers which really do pay enough extra interest to be worth the fuss for us. But will my widow cope? There's the rub.

latecomer

I've been thinking about this again recently - mostly as OH hates me shuffling money around and she has no idea where it is. Truth is that she doesn't want to know and hence its convenient to say she doesn't know/understand but she's much smarter than me so could easily understand if she chose to.


So closing accounts would certainly make life complicated on several fronts but I still struggle to get past the fact that you can make more interest by doing it. Something that takes me approximately 10 minutes a month as its mostly manual transfers but gives you a tangible benefit in terms of increased returns - I dont think I can stop even if I want to

colsten

trailingspouse wrote: »

..... shifting money around to perhaps gain an extra £40 or £50 a year (which is less than £1 a week!).

£50 is enough for a very decent Xmas dinner in my neck of the woods.

That said, I am making a lot more than an extra £50 a year from shifting money about. Most of the shifting does happen by SO, so the effort is reasonable. For example, the set-up of a 2% RS, to be fed with £250/mth by SO, and the shutting down after 12 months would take no more than half an hour's effort in total, for £32 extra return, compared to leaving it all languishing in the 1.5% account. Even after BR tax that's still an hourly rate of over £50, for a job that doesn't even require me to get out of my PJs.

Before the investment purists demand to know why I have all that cash sloshing around: I am talking about the cash element of my overall portfolio.

colsten

kidmugsy wrote: »

But will my widow cope? There's the rub.

Seems now is the time to make sure she does. Assuming that there is a chance that she might have to.

Herbalus

I’m still going around trying to open as many as possible

Yes it may be a little more work that a single account or 2, but it’s £40 per month in interest and cash back, which excludes the regular saver interest which turns up annually.

Recently opened Santander lite for the grand total of £2 per month. But in reality my 3 direct debits are all fixed amounts so it’s a standing order to pay them. Not much effort for £24 each year.

kidmugsy

colsten wrote: »

Seems now is the time to make sure she does. Assuming that there is a chance that she might have to.

It's always the right time in principle and never the right time in practice. I've given up trying.

george4064

I don't go round opening accounts left, right and centre, but I'm happy (and have done) to open a few accounts to earn decent interest on my money. I'm just not that bothered to run around to get the 'best' interest for ALL my money.

nomorekids

I have been steadily ditching all this year and haven't renewed any regular savers under 5%. I have to keep HSBC First Direct and Nationwide for the regular savers, not sure whether to keep M & S for their 5% as the direct debit requirement is a pain.


Coop I m keeping for the £48 free pounds a year but recently closed Bank of Scotland. I'm going to close or switch Halifax next as they have reduced their incentive to £24 a year. Then I'll close Barclays when blue rewards bonus reduces.

I like everyone who has old TSB and old Tesco are keeping them for the interest rate, I use these as savings accounts and somehow never get to the position of having more than the maximum for the top interest rate in TSB/TESCO savings (pesky kids


Lloyds the kids love for the free cinema tickets, I won't be popular if I close Lloyds, again pesky kids:D

Kernel_Sanders

Thrift is in my DNA. It's the way I was brought up so I still do it and get some satisfaction that my instant access savings are not losing as much to inflation as most other people's are. I don't really consider it a chore, at least when everything goes smoothly.