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  • FIRST POST
    • Sweetcake
    • By Sweetcake 2nd Jul 18, 10:54 AM
    • 189Posts
    • 123Thanks
    Sweetcake
    Piggybanking method with multiple banks or within one bank?
    • #1
    • 2nd Jul 18, 10:54 AM
    Piggybanking method with multiple banks or within one bank? 2nd Jul 18 at 10:54 AM
    Hiya. For those who piggybank (so have different bank accounts for different purposes), do you find it easier to piggybank with accounts across different banks/building societies OR within one bank - so having multiple accounts and naming them different things?


    I started piggybanking in March, and I have main banking within Natwest, and then split my accounts between different banks, and now I'm thinking of making it slightly easier and doing it within Natwest (whom I do have 2 current accounts with - bills + spendings, and a savings account) OR Starling, as they pay interest.


    What do others here do or suggest, and have you done both, and why have you chosen to do it the way you have?
Page 1
    • bournefree
    • By bournefree 5th Jul 18, 6:25 AM
    • 113 Posts
    • 292 Thanks
    bournefree
    • #2
    • 5th Jul 18, 6:25 AM
    • #2
    • 5th Jul 18, 6:25 AM
    You need to do whatever suits you best and will work for you. I'd recommend having accounts with two different banks, just in case one has a meltdown, like TSB. Then find out how the different types of accounts, online online / phone / branch, which suit you best, and their rates of interest, e.g. 5% up to 1,500 or 2,500 depending on the bank (in this case TSB and Nationwide). Having accounts with lots of banks will of course mean having to remember their different systems.
    MFW #59 2017 target met, now mortgage free!
    • Anthorn
    • By Anthorn 5th Jul 18, 6:24 PM
    • 4,104 Posts
    • 1,118 Thanks
    Anthorn
    • #3
    • 5th Jul 18, 6:24 PM
    • #3
    • 5th Jul 18, 6:24 PM
    If a bank offers the ability to open several savings accounts then you can do it with the same bank. An alternative is a jam-jar account at a credit union which is about as Piggy-bank as it gets. Starling Bank current account offers a similar jam-jar facility with its "Goals".
    • jblackmore
    • By jblackmore 11th Oct 18, 9:37 AM
    • 101 Posts
    • 37 Thanks
    jblackmore
    • #4
    • 11th Oct 18, 9:37 AM
    • #4
    • 11th Oct 18, 9:37 AM
    I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

    Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

    Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(
    • eskbanker
    • By eskbanker 11th Oct 18, 9:54 AM
    • 8,767 Posts
    • 10,030 Thanks
    eskbanker
    • #5
    • 11th Oct 18, 9:54 AM
    • #5
    • 11th Oct 18, 9:54 AM
    I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

    Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

    Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(
    Originally posted by jblackmore
    Who do you think is better at money management, someone with multiple pots earning 0.1% interest, or someone putting everything into a single account earning, say, 1.5% and not relying on a financial institution to keep on top of their savings?

    I get that some people find it easier to segregate their money, in the absence of willpower and organisation, but dressing that up as better money management seems to miss the point and doesn't look like particularly intelligent finance to me....
    • isasmurf
    • By isasmurf 11th Oct 18, 10:15 AM
    • 1,760 Posts
    • 785 Thanks
    isasmurf
    • #6
    • 11th Oct 18, 10:15 AM
    • #6
    • 11th Oct 18, 10:15 AM
    I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

    Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

    Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(
    Originally posted by jblackmore
    I believe the digital app only banks offer this, but you could achieve the same thing with better rates by opening a savings account or regular saver for each 'pot'.
    • redux
    • By redux 11th Oct 18, 10:41 AM
    • 18,711 Posts
    • 25,036 Thanks
    redux
    • #7
    • 11th Oct 18, 10:41 AM
    • #7
    • 11th Oct 18, 10:41 AM
    It seems to me that having most transactions in one account would be simpler than having to remember to keep checking how much is being transferred to several separate budgets.

    That said, I have work income and standard expenditure in one account, and another account where the savings and investments radiate from and sometimes to.
    • jblackmore
    • By jblackmore 11th Oct 18, 10:47 AM
    • 101 Posts
    • 37 Thanks
    jblackmore
    • #8
    • 11th Oct 18, 10:47 AM
    • #8
    • 11th Oct 18, 10:47 AM
    Who do you think is better at money management, someone with multiple pots earning 0.1% interest, or someone putting everything into a single account earning, say, 1.5% and not relying on a financial institution to keep on top of their savings?
    Originally posted by eskbanker
    Ouchie, maybe i meant lazy money management. I have standing orders paying in every month so i guess i think I'm doing OK as the washing machine broke this week and I had money ready to replace it instantly.

    I'm sure i could get better interest by moving money around regularly and maintaining jars by spreadsheet but the amounts are pretty small so for me the hourly rate isn't worth my free time.
    • soulsaver
    • By soulsaver 11th Oct 18, 11:34 AM
    • 2,147 Posts
    • 999 Thanks
    soulsaver
    • #9
    • 11th Oct 18, 11:34 AM
    • #9
    • 11th Oct 18, 11:34 AM
    Try Tesco - you can have (at least) 6 savings accounts and a couple of current acs.

    You can nick name each of them and they pay IIRC c 1.36% currently inc 1 yr fixed bonus rate, but they bring new ones out every few weeks.

    The current acs pay 3% until April but to get it each'll need 3 DDs (or 1 off weekly) & regular funding, which can be automated by SO in and out again.
    • Anthorn
    • By Anthorn 12th Oct 18, 11:31 AM
    • 4,104 Posts
    • 1,118 Thanks
    Anthorn
    Hiya. For those who piggybank (so have different bank accounts for different purposes), do you find it easier to piggybank with accounts across different banks/building societies OR within one bank - so having multiple accounts and naming them different things?


    I started piggybanking in March, and I have main banking within Natwest, and then split my accounts between different banks, and now I'm thinking of making it slightly easier and doing it within Natwest (whom I do have 2 current accounts with - bills + spendings, and a savings account) OR Starling, as they pay interest.


    What do others here do or suggest, and have you done both, and why have you chosen to do it the way you have?
    Originally posted by Sweetcake
    I simplify it by using a jam jar account at my local Credit Union. I transfer an amount equal to my monthly outgoings from my current account by standing order and then the CU splits it into different jam jars and then pays the accounts when due.

    First of all you will need access to a local Credit Union which secondly also provides jam jar accounts. Also consider that if there is a money saving discount for paying by direct debit you will lose that discount.
    http://www.abcul.org/home
    • Terry Towelling
    • By Terry Towelling 12th Oct 18, 1:38 PM
    • 749 Posts
    • 586 Thanks
    Terry Towelling
    Ouchie, maybe i meant lazy money management. I have standing orders paying in every month so i guess i think I'm doing OK as the washing machine broke this week and I had money ready to replace it instantly.

    I'm sure i could get better interest by moving money around regularly and maintaining jars by spreadsheet but the amounts are pretty small so for me the hourly rate isn't worth my free time.
    Originally posted by jblackmore
    In these times of austerity I recommend reducing your hourly rate and using pen and paper to monitor the different pots (if you really don't want to use a spreadsheet) and hold the money in a single account that could pay you up to 50x more than you are currently getting.

    Once you have that in place there should be no need for multiple standing orders anymore, very little need to keep moving money around, the washing machine will hopefully keep working and you will be able to reinstate your former hourly rate in no time.
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 18, 2:16 PM
    • 7,389 Posts
    • 16,307 Thanks
    enthusiasticsaver
    I don't piggybank anymore. Our income and outgoings go out of Santander 123 and our emergency fund of 20k sits in there earning 1.5% (fee covered by cashback on our monthly direct debits.) We have our home improvements and car savings money and holiday savings sitting in Tesco internet saver and Tesco current accounts earning between 1.4% and 3% but we always take from the 1.4% internet saver. My personal spending money is in FD earning no interest but gives a 2nd bank option in case Santander and Tesco are both down.


    We no longer transfer money out to regular savers as early retired now and trying to just focus on outgoings being less than income. When the Santander 123 builds up we just transfer to Tesco.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Novice investor101
    • By Novice investor101 13th Oct 18, 5:37 PM
    • 331 Posts
    • 856 Thanks
    Novice investor101
    My main banking is with NatWest rubbish for savings but they've a great mobile app, that really helps me manage my money.

    My wages go into, &bills DD's out of, my one current account & I have a SO of 120pm that goes out to a NatWest naff-all interest savings account too. This is to pay for the yearly bills like TV licence & car insurance etc when they come round.
    It's not worth having this with a separate bank as I find it easier to be able to see the balance & to also transfer the amount needed instantly to my CC or current account to pay said bill. It rarely has more than 500 in it as money goes in & out fairly often.

    My emergency fund is with a different bank in a better interest savings account where I can't see it & get tempted to spend.... & I also have SO's & DD's that go out on payday to my investments & regular savers.

    Usually, all my bills, savings & investment money has gone to it's designated account by the 1st of each month - so whatever is left in the current account after then is mine to spend.
    I also have another, spare, savings account with NatWest which I use as a holding acc - any money left in my current account the day before payday gets moved to here while I decide if I want to invest it, save it or treat myself & spend it. It's never there for long.

    Then rinse & repeat on payday.
    The best thing I ever did was automate my savings & investment payments to go out by SO, means I've never missed a month or spent the money elsewhere.
    • Zero Sum
    • By Zero Sum 13th Oct 18, 6:49 PM
    • 601 Posts
    • 491 Thanks
    Zero Sum
    I don't piggybank anymore. Our income and outgoings go out of Santander 123 and our emergency fund of 20k sits in there earning 1.5% (fee covered by cashback on our monthly direct debits.) We have our home improvements and car savings money and holiday savings sitting in Tesco internet saver and Tesco current accounts earning between 1.4% and 3% but we always take from the 1.4% internet saver. My personal spending money is in FD earning no interest but gives a 2nd bank option in case Santander and Tesco are both down.


    We no longer transfer money out to regular savers as early retired now and trying to just focus on outgoings being less than income. When the Santander 123 builds up we just transfer to Tesco.
    Originally posted by enthusiasticsaver
    Santander 123 lite earns same cashback & costs 4 a month less.
    You're not getting 1.5% youre getting 1.26% nett after fees
    • enthusiasticsaver
    • By enthusiasticsaver 14th Oct 18, 12:08 AM
    • 7,389 Posts
    • 16,307 Thanks
    enthusiasticsaver
    Santander 123 lite earns same cashback & costs 4 a month less.
    You're not getting 1.5% youre getting 1.26% nett after fees
    Originally posted by Zero Sum
    Santander lite does not pay interest though and we like keeping a high balance in our current account. We had this debate on another thread.

    If you earn no cashback then I agree the rate is 1.26.

    As advertised though Santander 123 pays 1.5% with a 5 monthly fee which in my case is covered by cashback on direct debits so my annual return is 1.71%.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Zero Sum
    • By Zero Sum 14th Oct 18, 12:48 AM
    • 601 Posts
    • 491 Thanks
    Zero Sum
    Santander lite does not pay interest though and we like keeping a high balance in our current account. We had this debate on another thread.

    If you earn no cashback then I agree the rate is 1.26.

    As advertised though Santander 123 pays 1.5% with a 5 monthly fee which in my case is covered by cashback on direct debits so my annual return is 1.71%.
    Originally posted by enthusiasticsaver

    But youd get better with a bit of jiggerypokery
    Keep minimun in 123 lite & transfer cash from decent paying savings account to meet DD's. Your annual returm isnt that as you'd get same cashback from the lite version. The extra 4 a month just isnt worth it.

    What people do is up to them, but im getting on average about 2.6% accross the board (on about 50k) & i dont like people being short changed.
    • enthusiasticsaver
    • By enthusiasticsaver 14th Oct 18, 8:24 AM
    • 7,389 Posts
    • 16,307 Thanks
    enthusiasticsaver
    But youd get better with a bit of jiggerypokery
    Keep minimun in 123 lite & transfer cash from decent paying savings account to meet DD's. Your annual returm isnt that as you'd get same cashback from the lite version. The extra 4 a month just isnt worth it.

    What people do is up to them, but im getting on average about 2.6% accross the board (on about 50k) & i dont like people being short changed.
    Originally posted by Zero Sum
    I understand that and have done that in the past with opening numerous bank accounts/regular savers and transferring money around every month/ setting up numerous direct debits.

    Most of our cash is invested and earning around 5-7%. We are both early retirees and leading an active retirement and constantly watching our current account to make sure there is enough in it not only to cover direct debits but also living expenses is not something we want to do now so the Santander lite would not work for us unless we open another interest bearing current account and keep topping it up.

    To get 2.6% across the board you presumably have lots of bank accounts/regular savers? Do you do fixed rate bonds?

    We are in the middle of some expensive home improvement projects so may rethink about fixed rate bonds when those are done. We have gone for the easy option I know but we manage well as we are with no effort.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Zero Sum
    • By Zero Sum 14th Oct 18, 10:28 AM
    • 601 Posts
    • 491 Thanks
    Zero Sum
    I understand that and have done that in the past with opening numerous bank accounts/regular savers and transferring money around every month/ setting up numerous direct debits.

    Most of our cash is invested and earning around 5-7%. We are both early retirees and leading an active retirement and constantly watching our current account to make sure there is enough in it not only to cover direct debits but also living expenses is not something we want to do now so the Santander lite would not work for us unless we open another interest bearing current account and keep topping it up.

    To get 2.6% across the board you presumably have lots of bank accounts/regular savers? Do you do fixed rate bonds?

    We are in the middle of some expensive home improvement projects so may rethink about fixed rate bonds when those are done. We have gone for the easy option I know but we manage well as we are with no effort.
    Originally posted by enthusiasticsaver

    I do have some fixed bonds & reg savers but those tend to be for ringfenced stuff like stoozing & mortgage overpaying. Where there is a specific timeframe.

    The thing with average the average rate, as weve seen with the santander argument, theres different opinions as to how you calculate it. If i exclude the cash i have stoozed because really its not my money the rate is much higher.

    Also tesco pay clubcard points on their account for sloshing money into certain accounts. You can do it 6 times a month (cos its a debit card payment there & BACS back so takes a few days) which equates to 9%
    • litepay
    • By litepay 14th Oct 18, 11:01 AM
    • 44 Posts
    • 45 Thanks
    litepay
    I "piggybank" using YNAB but for actually saving money I always try to use the highest interest savings accounts out there. I use a combination of current accounts, easy access savings accounts, regular savers, and kids accounts (for my child's uni funds). At the moment most of my savings are in Nationwide current accounts and savings, Halifax savings accounts, and Marcus savings accounts.

    YNAB tells me how much money I have for various purposes..

    Then, for everyday spending I use one of the Nationwide accounts and I use Barclays for salary and direct debits.
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