Backup Bank Account(s)

RG2015

This is often discussed but has anyone here had to use a backup bank account and if so why?

The main example I have seen here is where a bank account has been blocked and no one has ever admitted to a single reason why this could possibly have happened. I imagine that this must be a very rare occurrence if the account holder had done nothing out of the ordinary.

IT outages are another example but I have lived through the NatWest debacle and it never caused me any issues.  And I am not sure that a backup account would have helped that much when TSB had their meltdown unless the backup had substantial sums held there.

badger09

Depends what you mean by 'a backup bank account'. I've had my Co-operative current account almost 50 years and always used it as my 'main' account. However, I have for many years also had several other current accounts, all of which could be classed as 'backups' in that some of them contain enough to tide me over any IT glitches. Obviously, that isn't necessarily why I opened the, or why I keep them

RG2015

Good point @badger09, I meant has anyone HAD to use a backup account because something had gone wrong with one of their main accounts making it unavailable for one reason or another.

eskbanker

I haven't ever had to use a backup account.

I also haven't had to claim on house or travel insurance either, but am still very reassured by their presence!

inspectorperez

I can think of several reasons why people may wish to have more than one bank current account. Here goes in no particular order:-

1). IT outages as has already been mentioned

2). A convenient place to temporarily park investment funds returning from matured fixed term bonds, thus not overstepping the £85,000 FSCS guarantee

3). Convenient toe in the door particularly with Challenger banks such as Monzo who provide simple to use technology which may have uses in certain contexts. Paying your share of a restaurant bill, making payments whilst abroad at acceptable exchange rates without fee charges, are examples that come to mind

4). Some fledgling banks sometimes produce attractive investment products from time to time which can be made available to existing customers applying by means of an online application. You do however need a current account with the bank to be eligible. I am thinking of Metro Bank which only permits the opening of new current account customers in branch. The downside of that is the branch network at present only extends as far North as Peterborough. Once you have opened your account however, you are then able to apply online for the bank's investment/savings products.

5). Taking advantage of a one off incentive for joining customers which on occasions are not to be sneezed at.

I am sure there are more, but these are the immediate things which come to my mind

Zanderman

RG2015 said:

Good point @badger09, I meant has anyone HAD to use a backup account because something had gone wrong with one of their main accounts making it unavailable for one reason or another.

If the thread question is simply has anyone had to resort, by circumstance, to actually use a back-up account (as opposed to inspectorperez's response listing reasons to have one) them my response is the same as eskbanker - i.e

No, I've never had a need to use one due to being blocked from using a 'main' account. 

But I regard a handful of my many accounts as 'main' for particular purposes so don't actually think of them as 'back-up' accounts - just alternative ones.  But they would enable me to carry on relatively normally if one of them became inaccessible.

RG2015

inspectorperez said:

I can think of several reasons why people may wish to have more than one bank current account. Here goes in no particular order:-

Thank you @inspectorperez.

This is an interesting answer to your own question but not to mine. I did not ask why people may wish to have more than one bank current account. I asked has anyone here had needed to use a backup bank account and if so why.

I have eight eight accounts each one of which has been opened for a specific reason.

Interest, cashback, rewards, regular savers requiring a current account. Some have minimal funds so would be no good as a backup.

RG2015

Thanks @Zanderman, Perhaps I should have done one of those dreadful polls. My feeling is that despite all the talk of having a backup account the likelihood of needing one is extremely small. 

EssexExile

We have two current accounts, my income goes into one & the wife's goes into the other. During the TSB debacle we just used the Santander one until things got back to normal. On the odd occasion we haven't been able to use the Santander we use the TSB.

colsten

RG2015 said:

 I did not ask why people may wish to have more than one bank current account. I asked has anyone here had needed to use a backup bank account and if so why.

Have you asked why people have

• building insurance
• car insurance
• life insurance

The answer may be similar to why people have more than one bank account / more than one way of paying what they need to pay.

RG2015

colsten said:

RG2015 said:

 I did not ask why people may wish to have more than one bank current account. I asked has anyone here had needed to use a backup bank account and if so why.

Have you asked why people have

• building insurance
• car insurance
• life insurance

The answer may be similar to why people have more than one bank account / more than one way of paying what they need to pay.

Many thanks for your interesting answer, but I am not asking why people have a backup bank account.

I am asking if they have ever had to use one and if so why.