Household budget accounts

Thehappypensioner

Hi all,
My first post! I am about to become a pensioner, and need to be careful with my available funds! I wondered if anyone can tell me if any UK bank operates household budgeting accounts?

Many years ago the Midland bank had a home budget account available to current account customers, the idea being that you estimated what you annual spend would be to cover all you bills, add a contingency, then divide by 12 and that figure be transferred from your current account to your budget account each month. The benefit being that the bank would cover all payments for household bills whenever they come in in the knowledge that you have allowed for the sum over the year.

It seems to me that for those on a tight budget, this may be ideal, but I have not seen any such account advertised.

colsten

You can achieve this yourself by using a budget planner and an account from which you pay your bills.

The budget planner can be anything from a piece of paper and pen to a home-made spreadsheet, or even a full-blown personal finance manager software package, such as YNAB, Yolt, MS Money etc.

Your bill payment account would be separate from your existing current account. You would deposit what you need for your bills, and pay the bills from this account as required.

Note that it is never the bank who would cover all payments - it is always your responsibility to do so

Note also that having 2 current accounts at different financial institutions is a good idea for everyone.

EarthBoy

I remember budget accounts, -several banks used to offer them but none do anymore. Yes, the banks used to guarantee your monthly payments, but they also charged a monthly fee, so they were only glorified current accounts with an overdraft.

You can easily recreate an old style budget account yourself by setting up a separate current account just for your bills, either with your existing bank or a different one.

Zero_Sum

Open up a Santander 123 lite account.
Work out how much your monthly bills are then set up a standing order into it.