Bank Accounts - 2x accounts what to do.....

sammysolent1

Hi All, 
I have 2 main bank accounts and wanted some clarify on a few things. 2021 is a year for me to really arrange my finances and one big step in bank accounts. 
I have a Barclays (main account) & Monzo account (use for 1 Direct debit and some transfers). I did recently close down my Lloyds Premier account as it was costing me £28 a month and I didn't see the value. I have banked with Barlcays since day 1 and they have been good to me, I travel often and wanted to try Mozno and opened an account with them early 2020, I have been impressed. Seeing as I don't need branch access etc they have done a great job. The organisation around banking is great, including the pots they provide to manage finances. 

My question is, for the benefits of future finance, mortgages/loans/CC - if I was to change my main current account (Barclays) and bank purely with Monzo would it affect my previous credit rating as all my "history" would have been with Barclays. Do these kinds of things impact anything? Is there any benefits to having 2 main accounts? 
And do you feel Monzo are risky or are they as stable as the traditional banks? 
Thanks

eskbanker

sammysolent1 said:

Is there any benefits to having 2 main accounts?

Yes - if there's a technical outage with one, it's handy to be able to access funds via the other.  Likewise, it offers protection against card loss/theft, accounts being blocked/suspended, etc....

evanescent

I'd keep 2 bank accounts just in case there is a problem with one of them (e.g. sometimes they have access issues or they can block your account). Do you have Blue Rewards with Barclays? They give you £3 per month (£7, less the £4 account fee) if you keep 2 direct debits with them. If you also have a mortgage with them they give you an extra £5 per month. 

colsten

Keeping your Barclays account alongside your Monzo makes sense for at least three reasons

1. the longer you have been holding a current account in good stead, the better your stability. Lenders like stability
2. Barclays actually pay you for holding a current account with them. Investigate Barclays Blue Rewards
3. as per above from @eskbanker, having more than one current account is generally a good idea. Especially so when Monzo are involved, as they are known for slamming blocks on accounts.

There might be other reasons, such as preferential deals for existing customers.

Having said this, neither Barclays nor Monzo would be my first choice for my main account. I do hold both of them myself, alongside my trusted 123 Lite which is my main account and which  pays me nice DD cashback every month, and current accounts at several other banks, which also pay me monthly perks, and/or give me access to savings accounts with great interest rates (albeit on limited balances).  For these reasons, I presently have one or more current accounts with just about every UK current account provider.