Multiple bank accounts.

ColdIron

Do you have the Rainy Day Saver with Barclays?

[Deleted User]

I must have had 12 or so accounts in the last decade most of them now closed. had no impact on my mortgage application. I still have four now (two opened last year). It's good to keep one long term account going, but after that doesn't really matter assuming you are not applying for overdrafts on all of them. 

penners324

1 do you need so many?

Starling, Monzo and others use Pots that do exactly the same thing as multiple current accounts 

Katiehound

penners324 said:

1 do you need so many?

Starling, Monzo and others use Pots that do exactly the same thing as multiple current accounts 

these days better to have at least 2 in case there's an online hitch!

Wheres_My_Cashback

kimplus8 said:

I am looking at having a few different bank accounts as savings pots etc. 
so far I have 
main account- where wages get paid in
bills account- where all my direct debits go out
LISA- mortgage deposit savings
Car account- tax, mot, insurance up front etc
spending account- for my groceries and general spending. 

All my money gets paid into my main account and then I split it up between the other 4 accounts to pay bills, save and have grocery money. 

Is this a normal amount of accounts, does anyone want/have more? 

Will having this many accounts affect my mortgage application on the future? 

The number of accounts doesn't matter so much. They have negligible effects on your credit status if operated correctly though opening a lot just before a mortgage application may lead to questions.

What really matters is whether you have overdrafts/credit facilities attached to them or not.

AmityNeon

I prefer to budget separately from accounts so my money is free to earn the highest rates of interest. Bills are managed with a mix of overdrafts and same-day transfers scheduled in advance.

I think I had 14 current accounts when I applied for a mortgage, which went through without issue. Loans and credit card balances are more likely to complicate matters (in terms of calculating monthly affordability), even if they're at 0% interest.

kimplus8

ColdIron said:

Do you have the Rainy Day Saver with Barclays?

I don’t but I will take a look now. Thankyou

herebeme

Chase is good. You can have 3 current accounts and 10 saving “pots” (the savings ones pay good interest) all managed in the app. You get statements on each account. It’s super easy to transfer between them.  You can set goals and see your spending breakdown by category. I find that a lot easy to manage than 10 accounts with 10 different banks. 

I do like how Starling offer virtual cards on each of the their pot accounts though. Would save having to transfer before spending. 

kimplus8

herebeme said:

Chase is good. You can have 3 current accounts and 10 saving “pots” (the savings ones pay good interest) all managed in the app. You get statements on each account. It’s super easy to transfer between them.  You can set goals and see your spending breakdown by category. I find that a lot easy to manage than 10 accounts with 10 different banks. 

I do like how Starling offer virtual cards on each of the their pot accounts though. Would save having to transfer before spending. 

Thanks, I will take a look at these two

Band7

herebeme said:

Chase is good. You can have 3 current accounts and 10 saving “pots” (the savings ones pay good interest) all managed in the app. You get statements on each account. It’s super easy to transfer between them.  You can set goals and see your spending breakdown by category. I find that a lot easy to manage than 10 accounts with 10 different banks. 

I do like how Starling offer virtual cards on each of the their pot accounts though. Would save having to transfer before spending. 

You can even have 10 current accounts at Chase, along with the 10 savings accounts.

You can also lose access to all of your money in one fell swoop should Chase decide to block your account, if even for a few hours, days or weeks. Similar is obviously true for other banks, who might not let you have just as many accounts and whose functionality is different. Bottom line is that you take a big risk if you have all you funds with a single bank.

I would never put my faith (and money) into a single bank. Something can always happen, either specific to your account(s), or to the entire bank. Spread your risk. Use different banks for different purposes, unless you can tolerate high risk levels..