Is it a good idea to have 3 bank accounts?

dannyboyuk

Hi guys,

Just wondering if its a good idea to have 3 bank accounts to keep different funds in?

At the moment I have two accounts and a savings account. One accounts for spending (and wages go into this account), the others for backup money and then obvisouly my savings.

I've just started doing freelance web and design work so would it be a good idea to open another account with another bank just to keep the money I earn from freelance work?


Cheers for any help!


Dan

greyteam1959

Dont see why you cant have 3 banks accounts.
Its a very sensible way of budgeting......unless of course you incur any charges on any of the accounts.
I have 5 seperate bank accounts for just the same reasons as you.

C_Ronaldo

The logic you have applied to your accounts is good, why do you want another account for the freelance work to be paid into, id pay it into the wages account if it was me

arabianights

I think you should have lots of bank accounts - for one thing you can carry around a few cards and if you get mugged / lose your wallet then there is money in reserve.

I have 5 accounts with Nationwide alone...

ETA: This obviously applies only if you can manage your money. If you're like the morons in the claim back forum then I would recommend a basic bank account and paying for everything in cash.

littleorangelobster

If you're going freelance, I'd suggest keeping one of the three bank accounts aside purely as a tax/VAT account - ie. where you keep the money that will eventually be claimed back in your self-assessment tax return. Stick a third of all your freelance income in there, plus any VAT you charge on invoices, and LEAVE IT ALONE until you're asked for it - that way when the tax man comes knocking, provided you've done it correctly you'll be laughing :-)

dannyboyuk

awesome cheers for the advice guys, i'm going to sort out a third bank account now and get it filled with money!!