Backup bank account suggestions

polystyrene

The current Barclays fiasco (I think that is the recognised headline writers' term ) has made me realise how vulnerable I am to such problems. I have my bank accounts and cards with Santander - and if they went down for hours or days, it could very easily cause me significant problems.

Any recommendations for a backup account?

I can put a few hundred into an account to cover immediate needs.

Requirements:

• Must not be dependent on Santander's computer systems;
• Must issue a debit card;
• Must allow debit card to be used in Apple wallet;
• No charges;
• Interest, even modest, would be a plus.

As I'm not looking to switch, just to provide an alternative, I'm not expecting any offers to be available.

Emmia

Any current account provider will fulfil this need, so, HSBC, Chase, Monzo, Lloyds (Barclays, yes because they're not Santander) Halifax, NatWest,

I have accounts with HSBC and Barclays for exactly this reason, if one goes down, the other should work

grumpy_codger

Pretty much ANY bank fits your criteria.

For few hundred interest is irrelevant, but if it "would be a plus" it makes sense to get a new main spending account and use the old ones as backups.

Chase - 1% casback on spending, 3.5% easy-access savings.

Ulster bank - 4.5% on easy-access savings (£5K+), no cashback.

WillPS

Do you need a branch? If so, pick whichever has a branch near you (and keep an eye because this will likely change over time!).

Do you need free Post Office access? If yes, that excludes Nationwide, Monzo, Chase and Kroo.

Are you going to park a reasonable sum of money in the current account itself? If yes you might as well try and get some interest on that - Kroo will pay OK amounts on balances indefinitely.

Would a linked saver be handy i.e. one you can transfer money out of quickly in to the current account in the event of another main bank failure? If so Natwest/RBS might be worth a look - you could build up an emergency fund in a Digital Regular Saver and earn 6.17% up to £5k. Whenever needed a few taps in the app will have anything you need moved back in to the current account.

Rob5342

Any bank would do what you want, I always recommend Monzo and Starling as they have the best apps by far. 

polystyrene

WillPS said:

Do you need a branch? If so, pick whichever has a branch near you (and keep an eye because this will likely change over time!).

Do you need free Post Office access? If yes, that excludes Nationwide, Monzo, Chase and Kroo.

Are you going to park a reasonable sum of money in the current account itself? If yes you might as well try and get some interest on that - Kroo will pay OK amounts on balances indefinitely.

Would a linked saver be handy i.e. one you can transfer money out of quickly in to the current account in the event of another main bank failure? If so Natwest/RBS might be worth a look - you could build up an emergency fund in a Digital Regular Saver and earn 6.17% up to £5k. Whenever needed a few taps in the app will have anything you need moved back in to the current account.

Most of the branches that remained at the start of 2024 have indicated they will be closing - or have already closed. And next nearest would be around an hour drive away!

So branches cannot be a deciding factor.

Post Office is a good point. It would be convenient to have that option.

My savings accounts are already sorted and I do not wish to change them!

Never heard of Kroo! Thank you - and others - for their replies.

Robin9

WillPS said:

...................

Do you need free Post Office access? 

If yes, that excludes Nationwide,;;;;;;;;;;;;;;;;;;

No it doesn't     You can bank, inc Nationwide,  at most banks - just need envelopes,

and don't forget the new Banking Hubs.

friolento

Kroo and Zopa pay a small amount of interest. Zopa is presently by invitation only but you can join their waitlist. Zopa also currently have a 7.5% Regular Saver account, which would be a great place to keep a few hundred in for emergencies.

Another alternative for an emergency payment method is a credit card. You have 30 days to pay it off before interest charges hit. This should be plenty. Obviously the credit card should be from a provider othercthan Santander in your case but there’s a huge choice.

TheBanker

If you are with Santander, you will have a Mastercard. So it might make sense to open your alternative account with a bank that issues Visa debit cards. Alternatively if you have credit cards which are Visa that might be sufficient contingency.

If you're not using your new account often, make sure you make the occasional transaction to keep it active, and make sure you remember the card PIN and your online banking details. 

northwalesd

Robin9 said:

WillPS said:

...................

Do you need free Post Office access? 

If yes, that excludes Nationwide,;;;;;;;;;;;;;;;;;;

No it doesn't     You can bank, inc Nationwide,  at most banks - just need envelopes,

and don't forget the new Banking Hubs.

According to the PO website, you can withdraw money from a Nationwide account but can't pay in, either cash or cheque.

TheBanker

Robin9 said:

WillPS said:

...................

Do you need free Post Office access? 

If yes, that excludes Nationwide,;;;;;;;;;;;;;;;;;;

No it doesn't     You can bank, inc Nationwide,  at most banks - just need envelopes,

and don't forget the new Banking Hubs.

This isn't right, see: https://www.postoffice.co.uk/nationwide

You can withdraw cash from a Nationwide account at the Post Office (because for that transaction type the Post Office terminal is acting as an ATM). But you cannot pay in cash or cheques. The same applies at the Banking Hubs, which are basically just Post Office counters that don't sell stamps. I guess for emergancy use you'd be more worried about withdrawing than paying in 

Nationwide, I believe, decided not to participate in these things because they are focused on maintaining their own branch network through their Branch Promise, so are spending the money there rather than giving it to the Post Office.