best bank accounts to open to "piggybank"?

kmb500 · 17 July 2017 at 7:49PM

Hello

I am spending too much money and I need to cut down on it. I earn a decent wage but I just spend so much money. I don't know how. I just cleared 4 grand of debt in order to move out from my parents and now that I'm living on my own I should have even less money than I had before but still I'm overspending.

I have gone through budgets and I should have about £400/month extra to spend on eating out, drinking, buying luxuries and savings. But still I burn through it all and spend way more than I actually have, and that's without putting any money in savings. My savings account is at £0.00 and my current account is about £700 overdrawn. I lack self discipline and it is easier said than done to spend less.

I read an article on MSE about "piggybanking" which is that you have several different accounts and transfer different amounts to each one depending on your budget. That would physically stop me from spending too much and i think its a good idea.

So I'm thinking of opening maybe 3 bank accounts and want to know where to go. What should I look for in a bank account? I will not be "switching" just opening extra accounts.

Any other advice in general about budgeting would be very welcome, thanks

WillPS · 18 July 2017 at 11:17AM

I would advise against relying entirely on the 'available balance' of any account to "physically stop" you from overspending. For all kinds of reasons, the 'available balance' may very well not be a true representation of the amount of money you have remaining after spending.

The best way to physically stop yourself is to take cash out and put your debit card away. It isn't without risks though.

Ultimately it is all a matter of self restraint. Find things to do which will make you feel happy and fulfilled which you can do with only a fiver in your pocket.

Don80 · 18 July 2017 at 11:26AM

Hi

As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

What's left in my "main" account is mine to spend.

My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.

kmb500 · 18 July 2017 at 2:30PM

Don80 wrote: »

Hi

As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

What's left in my "main" account is mine to spend.

My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.

Yeah that's what I mean

Thanks for the advice.

giocoforzauno · 10 August 2017 at 8:10PM

kmb500 wrote: »

Hello

I am spending too much money and I need to cut down on it. I earn a decent wage but I just spend so much money. I don't know how. I just cleared 4 grand of debt in order to move out from my parents and now that I'm living on my own I should have even less money than I had before but still I'm overspending.

I have gone through budgets and I should have about £400/month extra to spend on eating out, drinking, buying luxuries and savings. But still I burn through it all and spend way more than I actually have, and that's without putting any money in savings. My savings account is at £0.00 and my current account is about £700 overdrawn. I lack self discipline and it is easier said than done to spend less.

I read an article on MSE about "piggybanking" which is that you have several different accounts and transfer different amounts to each one depending on your budget. That would physically stop me from spending too much and i think its a good idea.

So I'm thinking of opening maybe 3 bank accounts and want to know where to go. What should I look for in a bank account? I will not be "switching" just opening extra accounts.

Any other advice in general about budgeting would be very welcome, thanks

I thought that.
Try to pay your purchases by cash. Avoid, if possible, using credit or debit cards.

So touching and seeing money in your hands, and seeing a more empty wallet you should spend so much less money.

Try to do it! And let us know if this idea works. :grouphug:

System · 11 August 2017 at 3:18AM

Don80 wrote: »

Hi

As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

What's left in my "main" account is mine to spend.

My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.

It's not a good idea to keep all your funds with a single group as they may have a technical fault or decide to close all your accounts - you be stuffed until TSB move off of Lloyds systems!

Dobbibill · 11 August 2017 at 7:30AM

Any savings should be moved on payday or within a day or so.
Leaving it in your spending account is misleading, so you are spending it without thinking.

Sit down with your statement and see where everything is going. Odd coffees here and a takeaway there soon add up.

There's also several budgeting apps available. Many on here rave about YNAB (it does cost but there's a free trial and tutorial available)

Finally look at what you want from an account - do you want to get interest on your balance or spending offers.
Don80 has the right idea with different bills/spending accounts. If your direct debits are already set up on your existing account then your going to be looking for a spending account.

Ultimately it's down to self discipline but piggy banking may help with this.

mcpitman · 11 August 2017 at 9:40AM

Don80 wrote: »

Hi

As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

What's left in my "main" account is mine to spend.

My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.

I do exactly this, and it does work along with a strict budget for the week and withdrawing that in cash.

I don't have accounts that give me any bonus though...... off to check this out now.

teddysmum · 11 August 2017 at 11:05AM

As above, I would use cash for anything beyond essential bills.

If you don't actually handle the money you have no concept of it's value, especially if younger and never having lived n times where it was common to have wages paid in cash.

I was only saying this to my husband ,the other day, after seeing it discussed on a tv programme.

I was a mathematician ,yet don't really appreciate money as I did when we were first married (45 years ago) and I used to take the housekeeping money out in cash.

Another reason for cash is that if you cancel the option to take an overdraft, you can't spend what you don't have.

Also, it's time to grow up and take responsibility for your finances ,as if you are forced to take a lower paid job or have no job at all, you really need to be able to budget.

Money is one of the most common reasons for relationship breakdowns, so a future partner is not going to be happy, if they are careful and you undo their good work by wasting money.

MagicMoneyTree · 7 September 2017 at 4:56PM

If you don't like using cash, I'd highly recommend a prepay debit card for spending money. They don't allow you to go overdrawn and often come with great spending trackers and/or cashback on purchases.

Try Monzo or Loot, they're both great!

wiseonesomeofthetime · 7 September 2017 at 6:54PM

MagicMoneyTree wrote: »

If you don't like using cash, I'd highly recommend a prepay debit card for spending money. They don't allow you to go overdrawn and often come with great spending trackers and/or cashback on purchases.

Try Monzo or Loot, they're both great!

I use Monzo for my 'leisure' money, e.g. Eating out, days out with kids.

Use is instant and accurate balance viewable on smartphone.

Ok for abroad too.

best bank accounts to open to "piggybank"?

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