Is it feasible to have multiple savings accounts?

Section62

QrizB said:

I'm pretty sure there are people on this forum with numbers of accounts that run well into double figures. Not sure if anyone gets to triple figures, but it would be interesting to find out!

I'm sure they do.

Brie

Don't forget that if your parents put your mom's money in joint accounts they both get the £85k protection - so £170k total.

twadds123

sherbie28 said:

Last year my mum received an unexpected inheritance and at the time my parents put the majority in NS&i and some in a high street bank savings account. At the moment with the rate drops they can get better deals elsewhere. I was contemplating looking into splitting it up into banks which aren't linked so they get the fscs protection but have a better rate than they are currently getting. Do people have multiple savings accounts? I've done the numbers and it would be worthwhile. For e.g. NS&i currently 3.5% but Coventry offering 4.85%. Realistically, is the 4.85% due to drop and I'm wasting my time? Are there any pitfalls I should look out for? In hindsight has anyone done it and wish they hadn't?

The "feasibility" is really down to your desire to keep track of multiple accounts.

I'm small numbers of money compared to many on here but still have multiple savings accounts.

couple of fully flexible isas,  a couple of active easy access savings accounts, about 12 regular savers and a few easy access accounts only funded with a minimal amount to keep a relationship with that financial organisation in case they release a good existing customer offer.

All tracked with spreadsheets and mostly thru apps on the phone.

You are speaking about FSCS protection so it's probably safe to assume you are talking about a decent sum of money, therefore a small change in percentage earned could still translate into a decent difference in interest earned.

Albermarle

DRS1 said:

First the Coventry account is probably the Four Access Saver and that rate is variable so yes it will almost certainly go down soon.
Second whether your mum keeps the inheritance in cash or invests it, it would be a good idea to put as much as she can into an ISA.  The limit is £20k per tax year so she could put £20k in one now and another £20k in one after April 6.
You can have fixed rate accounts in an ISA as well as variable rates.  So Coventry have a Six Access ISA paying 4.55% variable or a Centrepoint  Fixed ISA paying 4.5% maturing at the end of May 2026.  As the 4.55% rate will probably go down to 4.3% the fix may be better.
Or she could go for a stocks and shares ISA for which people on here will predict fantastic  better returns than cash savings in the long term, but which may well not be her cup of tea.

Small modification 

UncleK

Yes, we did it while we were looking for a house - we were very fussy, so it took a long time - and we needed to have the cash ready to go. A spreadsheet, accounts maxed out at £85k (all in the wife's name for tax purposes) and this site with the various alerts to keep tabs on changing interest rates. A bit of work, but worth it to get the best interest rates.