Multiple savings accounts

frugalexceptfood

Hi first time posting. Some of the financial blogs etc I follow are Amercian and a lot of them recommend having multiple savings accounts (eg 10+) with the same bank each named for the specific saving goal for which it is designated . So far I haven't been able to find anything like this in the UK. Does anyone know if there are any online banks or apps that offer this service?
Thanks very much.

tibbles209

Hi frugalexceptfood,

I'm not sure this is really a 'service' as such, just a way that some people use their banks. I actually do this for shorter term/ smaller savings such as holiday savings, and savings for yearly bills such as MOT/car insurance (I keep my big/long term savings in stocks and shares and high interest accounts).

I am with RBS and via online banking I seem to be able to open as many savings accounts as I want and individually name all of them (Holiday fund etc.). I can see them all at a glance when I log in. It works for me, although there are other ways of doing it, such as keeping all your savings in a high interest account and instead keeping a breakdown on a spreadsheet.

EarthBoy

Most of the banks will let you open several of their instant access savings accounts. However, the interest is nearly always pitifully low.

sully1311

Yea I just keep all of my savings accounts on a spreadsheet.

Red-Squirrel_2

If you use YNAB or something similar you can get the same effect with just one account, and its less admin!

kuratowski

For this purpose a spreadsheet or budgeting/accounting software is more flexible.

However if you do want to do it solely using the bank, the "B account" (app-based) allows you to set up multiple named savings pots.

ET18

The post office online saver allows multiple accounts with 1.45%

surreysaver

ET18 wrote: »

The post office online saver allows multiple accounts with 1.45%

Although it might 'allow it', it is actually against the Terms and Conditions.

YorkshireBoy

surreysaver wrote: »

Although it might 'allow it', it is actually against the Terms and Conditions.

I thought that myself, but I've checked just now and can't find such a clause. Maybe they've changed? Or it's covered in the application preamble?

veryintrigued

YorkshireBoy wrote: »

I thought that myself, but I've checked just now and can't find such a clause. Maybe they've changed? Or it's covered in the application preamble?

They police it by having no way of opening the pesky things (in my experience)

Flobberchops

Yes, it's possible and in practice very easy to have multiple savings pots, either with the same or different banks. Most banks will have easy access/everyday/internet savings accounts with no or very few restrictions on use or access, and can often be opened online or through the app.

Myself, I have several instant access savings pots to keep money segregated for different uses. I also automate money going into them by standing order. So, one for Xmas expenses, one as a "date night" pot, and so on - customise to your own spending habits and savings goals.

As mentioned before the interest rates are generally pitiful but that's not really the point. It's a way of budgeting and segregating your money for different uses, analogous to the "envelope method" of cash management.