Which current account should I use?

unknown_myth

Even though I've been browsing around these forums for quite a while now, this is my first post. I'm after a bit of advice regarding my current accounts.

I currently have an Alliance & Leicester Premier Current Account which I've had for about 9 months, and I've been using it as my main account for about 6 months. It's got the Visa debit card, £250 overdraft etc., and an online PlusSaver account (which I don't use). I've also got a NatWest current account with 2 e-Savings accounts which I've had for 6 years, £100 overdraft interest-free, Maestro card, and was using it as my main account up until I signed up with Alliance & Leicester.

I've also got an account with Nationwide which I don't use (I got turned down for their Visa debit card) and recently got rejected by Halifax for their 60x interest current account. I also closed a current account with HSBC a few months ago that I didn't use.

My plan is to have 2 current accounts with the same bank - 1 to have my salary paid into, 1 to have my direct debits come out of, and just do a standing order across every month after getting paid. I would then close any accounts that aren't with this bank just to try and keep things simple.

My question is, which bank do people recommend I stay with to get this set up? I can see advantages and disadvantages with both NatWest and Alliance & Leicester, or should I consider switching to another bank or building society altogether?

Any ideas or comments would be greatly appreciated!

ShelfStacker_3

NatWest probably make this easier for you. Open a Step account (basic bank account) for your standing orders and direct debits, and like you say SO stuff across.

Really, though, any bank which has a basic bank account AND a current account, and will let you own and operate both, will be suitable. That's virtually all the high street banks. However, it might be worth giving HSBC, Lloyds TSB or Barclays a buzz, as if you don't think you'll be able to resist spending from your bill account then the Solo card NatWest give you will be murder.

CLAPTON

why ... you haven't said why you want two accounts atall

unknown_myth

My plan is to have 2 current accounts with the same bank - 1 to have my salary paid into, 1 to have my direct debits come out of, and just do a standing order across every month after getting paid. I would then close any accounts that aren't with this bank just to try and keep things simple.

Like I said, my idea is to have 2 accounts running with the same bank. A current account into which my wages get paid into, and just a basic account from which I can pay my direct debits and just fund it with one monthly standing order.

That way I don't have to worry about not having enough money in my account to pay the direct debits off as it will have already been moved out of my main current account.

reddeb

I agree with your way of thinking, I do this with my account at lloyds and it saves alot of bother, knowing all your debits are being paid from one account, just keep an eye-out sometimes one company as taken money out early and there wasn't money in there, then you're overdrawn.
My bug-bear at the moment is I have a platinuim account and have received a letter saying charges for this is going up £2 to £17 a month, worked out over the 30 years I've been with them could have bought a new car/ put our son through college with these charges!! so thinking of asking for basic account, thoughts anyone?

Voyager2002

Your plan is very sensible, unknown_myth. Be aware that if the bank makes any mistakes, so that transfers are delayed and direct debits go out when the funds to pay them are not there, you could face heavy charges and will certainly experience a lot of hassle. For that reason, go for a bank that is good at customer service and always does funds transfers when you expect them. Based on my experience (and that of others who post here) you should NOT use Alliance and Leicester, since there seems to be a delay in when they action transfers between accounts, and they can certainly make mistakes (particularly when their systems go down). NatWest are probably better in that regard, but not brilliant (I don't have much experience with them). The banks that are consistently recommended for being reliable and offering excellent customer service are Smile and First Direct. I have used both, and my personal preference is Smile.

Another point: the account from which your direct debits will be paid must be a currenct account, but perhaps the other account should be a savings account with a cashcard? Presumably the main way you will be spending money from this account will be in cash, and it is easy to find a savings account that comes with a cashcard and offers at least half-decent interest.

knightstyle

How about an A&L current account with your wages going in, SOs and DDs going out with a SO for your spending money to an A&L Cashplus account? The Cashplus ac comes with a debit card and you cannot go overdrawn, so leave your current ac card at home when you go shopping! This way if you get extra money in your wages it will stay in your current account until you decide to use it.

unknown_myth

What about Nationwide? Anyone got any opinions on them?

Megalomaniac

I have four bank accounts:

1 x Natwest for paying money into and routing money from
1 x RBS Student for the overdraft facility (currently saved)
1 x Nationwide (being upgraded to a full account from a basic one)
1 x RBS Joint Account (for combined expenses with my partner)

Natwest sends money to each account for spending (Nationwide) and for bills (RBS Joint). Other money goes into my ISA (£250pcm soon to be £300 in April). Any money left is considered money which can be used for holidays, expensive presents, unpredictable costs such as car repairs etc... which goes into my general savings account.

But back to the point, I will soon be using the Nationwide account as my main account. I am keen to do this as I travel a fair bit (going to Norway for a month to live and work soon), and by using this account with it's credit card abroad, I am saving a lot of money. They do seem to be a well respected bank. Also, I hope that being a customer with a variety of banks now will make them competetive in the future.

DGJsaver

I cant wait to leave a&l , they are appaling

Natwest for me

Dodgybloke

Hi Unknown_myth

I do exactly the same as you. I have a 2 current account system. One in which my salary is paid into (with very little in to I don't spend too much socialising) and another for paying my bills (also acts as very short term savings, I have an ICICI savings account linked).

Currently, I bank with Smile but I'm looking to move. The customer service is fine. However, after a years of raising interest rates by Bank of England, the current account rate was unchanged. The minute Bank of England lowered rates, Smile lowered theirs.

Consequently I'm pondering a move to Cahoot which don't have a minimum funding rule. I've only started considering the idea. I'm hoping others may have a better suggestion.