I use 1 bank for everything, spending , savings , credit cards, mortgage etc.
is it a bad idea to have this all together with 1 institution or open accounts at multiple banks and spread cash around. I’m not talking millions here but I always come across people who say they have accounts with 3 different banks just incase…
I heard one story about a guys phone got stolen and somehow the thief got into his banking app stole all the cash and the bank would not give him the money back as they said it was his fault
for being careless.
30 comments
Best to avoid having more than £80k cash in a single bank
Less for “just incase”, and more for ease of organisation I have savings separate and bills separate to “daily use” account
I think it’s a good idea to have at least one spare account. Not really for the long term risk of having money stolen (though of course that’s a benefit too) – but just the short term inconvenience of not being able to access account, or use card if you lose it/have it stolen, and to limit the amount a scammer might be able to get hold of, before hopefully the bank refunds. That way you can transfer cash to your spare one in order to withdraw money, etc.
Also, in the past I’d have separate accounts for different ‘pots’ – i.e. one for all utilities/direct debits, and set up a standing order to it every payday from my main account, of the monthly total for all the bills. Also, a separate one for essential grocery expenses, etc. Just to make budgeting easier, and ensure I didn’t spend money I needed to cover these.
Three. Four soon as I’m executing a will, and that needs a separate account.
There’s one that I could close, but that’d cost a stamp so why bother.
My mortgage is with the building society that had the offer that suited me best. My current account is the bank with the best switching offer. Savings in the account with the most interest. Credit card doesn’t charge transaction fees when used abroad. For me these are all different banks and building societies, if they are all the same for you that’s fine. I much prefer when there’s crossover so I have fewer different banks in total.
If someone manages to hack into your account then you’re completely screwed because then they can access all your money.
Also, when banks go bust, aren’t you screwed and lose out if you have over a certain amount in your account? Is that what another commenter is referring to with the £80k? Werent there people who even temporarily had over that threshold in their account when northern rock collapsed, and they lost out that extra money? People who had say sold their house and were about to buy another ended up with a lot of money in their account and only intended it to be there a few days or weeks and it got wiped out.
If you have all those products and accounts with one bank you’re unlikely to be getting a good deal. Having said that, because I’d been a customer for 20 years, one bank gave us a really good rate on our mortgage and we ended up getting a mortgage with them. But they’re not so good if I want to get a credit card. As I can afford to pay off a credit card each month but want to use it for the added protection or to use abroad, I want a reward type credit card, rather than one that’s low interest. And I can find better deals with other credit card providers.
What about the banks covering of £80k? Not that I have that..
FSCS coverage is 85,000
I have around 5 depending if you count investment accounts.
– S&S ISA + GIA
– Current debit account
– “high” interest account 1
– “high” interest account 2
– Chase account for spending abroad
– Mortgage: whomever had the best deal for me at the time *(bank 1)*
– Regular spending: credit card with the best perks for me *(bank 2)*
– Current account: one with a good app for daily money management *(bank 3)*
– Joint current account: as above, but shared with my wife *(bank 4)*
– Savings account 1: The best easy access savings rate I could find *(bank 5)*
– Savings account 2: Premium bonds *(bank 6)*
– Business account: To keep side hustle business earnings and expenses separate *(bank 7)*
I also have a handful of accounts I don’t use…credit card, an ISA, a current account I needed to open to open a savings account, and another current account I needed to open to open the joint account.
I think a long line of credit can be useful for mortgages and loans, but in general, don’t be loyal to a bank. Switch when they have good switching offers, then switch again. Find the best savings rates or other perks.
I have a few bank accounts just to manage money- pay and direct debits go out one, have another for weekly groceries and another for “fun” – plus savings account
Current, savings and business with one bank, mortgage with another and then we also opened up a Starling account which we use for whenever we travel outside the UK and also keep a couple hundred in there for emergency use in case our cards for the main bank don’t for some reason.
>Its it a bad idea to have this all together with 1 institution or open accounts at multiple banks and spread cash around.
So your bank gets tipped off that someone you received a payment from regularly has been involved in fraud. They freeze your accounts while they investigate – this process could take months. Due to banking regulations they cannot discuss the “why” with you.
What would your plan be?
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I have more than one bank account for *redundancy* purposes so if there is an issue with the first I still have access to cash.
`I have two current accounts, one main and one I barely use with a couple of hundred quid in it, the second exists just in case online banking goes down on my main account or something.
Me and the missus also have a joint savings account which we both pay £200 per month in to.
>is it a bad idea to have this all together with 1 institution or open accounts at multiple banks and spread cash around
Different accounts with 2 different banks, even just for redundancy.
I lost my wallet last year, but because I had a separate account with another bank for my bills, that I keep the card at home for, it meant I could transfer money to it from the app and continue to use it whilst waiting on my replacement card arriving.
If I didn’t have this, I’d have had to walk to my closest branch to withdraw money using my ID, which could be miles depending on where you live.
My day to day spending account doesn’t have any direct debits or continuous payments set up on it, so I know that when it says what the available balance is, there’s not going to be any surprise payments leaving it.
About 8, 2 current accounts, one disposable, one groceries, fuel etc, another account for bills – the rest are savings.
Wife & I have always just had one bank account and do everything through that. I can’t imagine the hassle of having to keep moving money about between accounts.
If you want to make decent interest on your savings, you need to be aware of other products on the market. A bank that’s good at day to day shit maybe doesn’t offer the best savings rates. You end up with multiple banks because of multiple products and needs.
Sticking everything in one either means you’ve found the most wonderful bank that offers the best service and highest rates on everything, or your savings are sitting in a 0.1% account when they could be in 4%.
I have four accounts:
– Bank account which I get paid into. My car finance, personal bills and other direct debits come out of this account.
– Spending account. Money from my main acc above goes into this account every month. This is my budget for luxury spends for the month. I find it helps me keep track of how much I have spent on luxury and helps me to stop over spending. This is for stuff like dinners, nights out of video games.
– Savings. Self explanatory. Money out of the main acc comes here every month.
– Joint acc. Me and my fiancée put money here every month. Our mortgage comes out of here, as well as household bills and weekly shop.
One for ingoings and outgoings, one for savings, one for work expenses, and one joint account my dad set up for reasons I forget.
All with the same bank, and I don’t use the phone app
Current account is with the provider who offered the best deal to switch. Joint account is with a different provider who offered a good deal. Credit card is with that bank because they offered a good deal. LISA is with a digital bank. Savings are with the bank with the best interest.
It’s helpful to have multiple card ‘brands’ available, just in case of network problems. It’s very rare but there have been times when e.g. VISA has had issues, so in that circumstance it would be good to have a Mastercard or AMEX available to you.
I switch banks all the time and regularly open up new ones just for the purpose of switching to get the free bonuses, or get credit cards just to get points/airport lounge passes/etc. I currently have 3 solo current accounts, 1 joint current account, 1 credit card (plus savings/ISAs).
Different accounts for different things.
High Street Bank A Current Account that I opened when I first moved to the UK as a student.
High Street bank B 2 Credit Card 1 because of specific perks
Another High Street C bank Credit Card 2 for points.
App only Bank Holiday spending Current Account
High Street Bank D “Hight” interest savings account for Emergency Fund
App only Bank B Backup Current Account in case I get locked out of
3.
1 – all my personal income goes there and sit there + savings account tied to it.
2 – I transfer money to my second account that I use for purchases in person and online. This ensures that my money is safe, it also allows for money control because online purchases can take time to show up on your bank account and I see when I spent the money I sent. It also allows me to control my spending without actually doing a detailed expense spreadsheet.
3. Business account – I run a small business so I have a separate one for all things business related
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I don’t think I’d ever use just one bank account again, it just doesn’t make sense to me. Sure, it’s simple but all your money is tied together and if your daa gets stolen, all your money is at risk as opposed to just a portion of it.
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With that being said, I can see how having more than one card can seem like useless thing for someone who lives paycheck to paychek and has nothing left over.
I have 3 or 4. One for paying wages, one for bills, One for misc and one as an overflow for the 85k secure guarantee limit.
It’s only bad if you have more than the equivalent of €85,000 in your bank account. If you do then spread that amongst different companies, not just brands so that you get the full protection, should that bank go bust. Other than that it’s your choice.
I have 3 bank accounts, one is my main account, one is good for spending and withdrawing cash abroad and the other is linked to a good rate savings account. But yes, the other advantage is that if something goes wrong with my main account, I have back up options. If they have a massive IT failure or the account gets compromised somehow etc.
5.
A current account for bills.
A cash account to transfer weekly spend budget into so I know bills will be paid and I don’t overspend.
3 savings accounts for different saving goals.
My main account is with First Direct. My mortgage was with the Woolwich but they were taken over so it’s now Barclays. That comes with a Barclays current account which I don’t use. I also have a Monzo card that I use for all day to day expenses.
Well, if you have any sizeable sum of savings then you probably want to put it in a higher interest account of some description (depending on your tax status, how much money you have and what kind of access you might need to that money, i.e ISAs, everyday savings, fixed period bonds – Martin Lewis site has a lot of info on savings accounts and which are the best given your circumstances)
I’d suggest owning 1 phone that has all your 2-factor auth and bank accounts etc on which you then carry around with you is very risky. At least if you go anywhere where you think being mugged is a not high, but elevated possibility like parts of London seem to fit that (perhaps other cities?)
You’d be better owning 2 phones (or using an ipad or desktop computer or whatever) and putting the secret squirrel stuff on it…and keeping that secured at home. When you go out take the phone with just access to a current account with enough to pay for whatever using contactless if you use that.
These days I don’t even carry cards around or a wallet with driving license etc. If I’m going to spend or might want to msg someone I take my phone, if I’m not – like if I just go out for a walk after eating I don’t even take that.
I’ve got a main one (Monzo) my salary goes into, mortgage and bills come out of etc. Been with them for years.
Got a back up account with Starling just in case I need one too, but honestly never needed it. Very cheap to use abroad though, and the redundancy is nice.
Mortgage is with NatWest, because they were the cheapest rate.
Credit card is with Amex for the rewards.
It’s not a bad idea to have everything with one bank necessarily but loyalty gives you nothing these days.