All income into one account?

I’m in a situation where I now have multiple income sources rather than one single source as I always had done. 

I’m not sure the best way to receive it. Do people tend to receive each income into its own account? Or is it best to have all income into one account and then keep an emergency fund in a separate account?

For example I wonder if a bank might think you have ‘less’ income because it’s not all being paid into their account when it comes to wanting a credit card / loan

Replies

  • Rob5342Rob5342 Forumite
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    We've always had our various incomes go into one account, and then split it into seperate accounts and Monzo pots for various purposes. If you want to apply for a mortgage or loan then it will probably be easier to have one account you can share with open banking.
  • km1500km1500 Forumite
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    I would have one income paid into a separate bank account at a different bank and use that account to pay all your household direct debits and nothing else. Just in case your main account gets frozen for a few weeks.
  • 400ixl400ixl Forumite
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    For me it would depend on what access you have to available funds.

    The consideration for an account being frozen is worth considering, however if you have access to funds such as easy access savings to cover the month if that were to happen then all into one is most convenient for proof of income if required.
  • gt94sss2gt94sss2 Forumite
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    I’m in a situation where I now have multiple income sources rather than one single source as I always had done. 

    I’m not sure the best way to receive it. Do people tend to receive each income into its own account? Or is it best to have all income into one account and then keep an emergency fund in a separate account?

    For example I wonder if a bank might think you have ‘less’ income because it’s not all being paid into their account when it comes to wanting a credit card / loan
    Just do whatever is easier for you in terms of keeping track of your income/spending.

    This could be everything from one account or you could have multiple accounts (at the same bank or with different ones)
  • blue.peterblue.peter Forumite
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    I have two current accounts, and have one of my two pensions paid into each. Money out (DDs, standing orders, etc.) is split between them on a fairly arbitrary basis - council tax/water/gas/electricity/telecoms from one, credit card DDs (almost all of my other spending) from the other, charitable and political donations split fairly evenly between them.

    Each current account has an easy-access savings account linked to it. The idea of this is resilience: if one bank gets snotty and blocks access to an account, I still have access to enough money to tide me over for a couple of months until things are cleared up.

    My ISA has to be linked to one of the current accounts, but switching the link to the other can be done in a few days if necessary.

    I've never had any problem getting a credit card with these arrangements.
  • Band7Band7 Forumite
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    I have income from different  sources going into one current account. but I also have some incomes going  into different accounts. There are no hard and fast rules, just do what’s best for you.

    Having said this, having multiple current accounts eith different providers seems a sound strategy, as something can always go wrong with any bank, and you don’t want to be stranded without money.
  • Jami74Jami74 Forumite
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    When I had income income from various sources it all went into one account where it stayed until I 'paid myself' on the first of the month. I found it much easier to budget having a set amount of money once a month rather than dribs and drabs throughout the month.
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  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
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    We have all our income come into one account then it gets distributed into other accounts and savings pots. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.
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