Advantages and disadvantages of having more than one bank account?

FlorayG

As the title says; I have two bank accounts as I have two income streams but I do wonder if this is unnecessary. Once of my banks is Monzo, so I have different 'pots' within that account anyway to put away money for various things. My other account is Nationwide and I pay all my DD out of this account

born_again

Advantage of more than 1.
Bank freezes account. Life goes on.
Lose/stop debit card, Life goes on

Amazing the number of people who only have one account, then come unstuck when any like a card being stops causes a melt down. Especially at certain times of year or on holiday.

EssexExile

It's always worth having at least two, anything could happen to one. They could freeze or close it without notice, they could have IT problems, etc.

Rob5342

The old dont keep all ypur eggs in ome basket applies. It's a good idea to have at least two current accounts so you have a backup if you cant access one of them. I can't see any disadvantages to having multiple ones, it only takes a fingerprint to open the app so there is no inconvenience. 

Brie

Rob5342 said:

The old dont keep all ypur eggs in ome basket applies. It's a good idea to have at least two current accounts so you have a backup if you cant access one of them. I can't see any disadvantages to having multiple ones, it only takes a fingerprint to open the app so there is no inconvenience. 

unless you don't use apps or have a fingerprint option on your phone of course.  But Monzo I think is app based?

In any case all it takes is a way to remember the different account access codes/pins.  But definitely worthwhile having more than one and in different banking groups. 

Was it HSBC that had a major system meltdown a few years back?  Anyways - lots of people unable to access cash, pay bills, buy groceries. 

And having been burgled I might suggest that a minimum of 3 accounts is required.  2 with cards in your wallet/phone and one somewhere else safely tucked away (not in your sock drawer) in case you get burgled or otherwise have your wallet/phone stolen/go missing.  I mention the sock drawer as it's such a cliche place to stash things that any "decent" burglar will know to look there.

WillPS

More than 1 is redundancy. I generally advise that you have access to funds with 2 different banking groups at all times, and both a Visa and a Mastercard to pay with.

Holding several accounts is optimal for easy money/rewards. With little effort you can have £15 from Halifax, £6 (net) from Natwest Group, some cashback on monthly DDs from Santander and a magazine sub, Disney+ with ads or a cinema ticket from Lloyds. If you're a couple willing to open joint accounts you can get £30 from Halifax, £18 from Natwest Group, cashback from Santander and 3 rewards from Lloyds (including magazine subs, Disney+ with ads or a cinema ticket). My wife and I make somewhere around £55 + 2 magazine subs + Disney Plus for 20 mins or so of effort on the 1st of each month.

There's also rewards to be had from TSB, although we don't currently bother with them.

For merely holding a current account (not neccessarily doing anything with it other than keeping it from going dormant) First Direct, Co-operative Bank, Nationwide, Natwest/RBS, Lloyds, TSB and Bank of Scotland will allow access to 'exclusive' regular savers with base-rate beating rates, which is another money making vector.

friolento

I have one main current account and many additional ones.There is obvsly a need to keep a record of them and of their log in details but this is negligible effort. I cannot think of any disadvantage but of many advantages of having several current accounts.

Advantages include: not having all your eggs in one basket, much reduced risk of being stranded if there is a problem (caused by yourself or by an even outside your control) with the main bank account, access to great Regular Savers, reserve account(s) for switching etc etc

danny13579

Halifax: £15 rewards per month,
NatWest: £3 (net) per month,
RBS: £3 (net) per month,
Danske: £3 (net) per month,
TSB: £10 per month (£5 x 2 Spend & Save accounts).

Also, many banks have cashback for shopping with various retailers. NatWest and RBS regularly have a 3% cashback offer for eBay purchases (+ another 1% for using Top Cashback) as well as 4% cashback offers for Sainsbury’s shops.

These may all be relatively small amounts but they all add up over the months and go into my Christmas fund. As I am rarely eligible for switching offers these days I make sure to milk the banks as much as possible for free cash in other ways.

There are many horror stories on here about people with just one account being completely stranded as it was frozen or they were debanked. To me there are no advantages to having only one account.

Right now I have current accounts with RBS, NatWest, Santander x 2, Monzo, Starling, Kroo, Chase x 2, HSBC, First Direct, Danske, TSB x 2, Halifax x 3, and Co-op!

Moral #1: Never leave all your eggs in one basket.
Moral #2: Look after the pennies and the pounds will look after themselves.

steven141

danny13579 said:

Halifax: £15 rewards per month,
NatWest: £3 (net) per month,
RBS: £3 (net) per month,
Danske: £3 (net) per month,
TSB: £10 per month (£5 x 2 Spend & Save accounts).

Also, many banks have cashback for shopping with various retailers. NatWest and RBS regularly have a 3% cashback offer for eBay purchases (+ another 1% for using Top Cashback) as well as 4% cashback offers for Sainsbury’s shops.

These may all be relatively small amounts but they all add up over the months and go into my Christmas fund. As I am rarely eligible for switching offers these days I make sure to milk the banks as much as possible for free cash in other ways.

There are many horror stories on here about people with just one account being completely stranded as it was frozen or they were debanked. To me there are no advantages to having only one account.

Right now I have current accounts with RBS, NatWest, Santander x 2, Monzo, Starling, Kroo, Chase x 2, HSBC, First Direct, Danske, TSB x 2, Halifax x 3, and Co-op!

Moral #1: Never leave all your eggs in one basket.
Moral #2: Look after the pennies and the pounds will look after themselves.

I agree. It’s great to take advantage of the offers each of them offer plus not having your eggs in one basket. 

I currently have:

Lloyds Bank x1 Club Lloyds with regular saver.

Bank of Scotland x1 with regular saver.

Chase x 1 with 1% cashback plus 5.1% saver.
 
Royal Bank of Scotland x1 with regular saver and credit card fee free spending abroad.

Santander Edge Current account x1 with 7% Edge Saver and Edge Credit card 2% cashback.

Nationwide Flex Plus account for household insurance £13 a month plus a joint FlexDirect joint account earning 5% interest and an 8% regular saver. Eligible for Nationwide Fairer Share payment of £100.

American Express Cashback credit card 0.5% cashback. I originally joined when it had a promotional offer for 3 months. Got over £110 waiting to be redeemed after the anniversary date of joining.

I have also been around the banks for cashback but I no longer have those accounts. I have pretty much exhausted them for now. 

FlorayG

OMG some people have numerous accounts! What's the advantage of having so many please?

Nasqueron

FlorayG said:

OMG some people have numerous accounts! What's the advantage of having so many please?

Advantages / reasons for having so many are all stated in the posts above