The Student Room Group

Is 12 bank accounts excessive

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Original post by yudothis
I only have two, but each in a different country. Beat that.


Why would I want any in a different country? Far better as a UK national to have them all here.
Original post by Jennie1987
Why would I want any in a different country? Far better as a UK national to have them all here.


Well if one is worried about a bank run, in a different country would make much more sense.

And if one is not, why even have so many?
The rationale between using these current accounts paying 3-4% in lieu of pitiful savings accounts with their 0.1% rates is sound if you're looking to get the best cash rates. I'd jettison the NatWest one, though. Are you taking advantage of your ISA limit, or are you not currently a taxpayer?

The only thing to be wary of the effect on your credit report - each current account will have generated a credit search, and will be updated each month. This isn't a disaster so long as they are run properly (and, even better, there isn't borrowing available on more than one of them) but the number of open/active accounts could limit your access to any further accounts or cards, just because of the number you already have open.
Original post by Reality Check
The rationale between using these current accounts paying 3-4% in lieu of pitiful savings accounts with their 0.1% rates is sound if you're looking to get the best cash rates. I'd jettison the NatWest one, though. Are you taking advantage of your ISA limit, or are you not currently a taxpayer?

The only thing to be wary of the effect on your credit report - each current account will have generated a credit search, and will be updated each month. This isn't a disaster so long as they are run properly (and, even better, there isn't borrowing available on more than one of them) but the number of open/active accounts could limit your access to any further accounts or cards, just because of the number you already have open.


Isn't there like a 2k limit on that though on which it pays 3-4% and you have to pay in a certain amount every month to get it?

I suppose you could create a scheme where you pay one account to the other to the other and so on, and get a nice 3% safe return a year for nothing.

Doesn't seem worth the effort though.
Original post by yudothis
Isn't there like a 2k limit on that though on which it pays 3-4% and you have to pay in a certain amount every month to get it?

I suppose you could create a scheme where you pay one account to the other to the other and so on, and get a nice 3% safe return a year for nothing.

Doesn't seem worth the effort though.


It's completely worth it
Original post by yudothis
Isn't there like a 2k limit on that though on which it pays 3-4% and you have to pay in a certain amount every month to get it?

I suppose you could create a scheme where you pay one account to the other to the other and so on, and get a nice 3% safe return a year for nothing.

Doesn't seem worth the effort though.


Yes, you're right with this. Without researching each account, I don't know the exact details, but you are right to say that most of these have a minimum pay-in amount per month, and sometimes the rates are marginal, i.e. 1% on balances up to ÂŁ750, 2% from ÂŁ750 - ÂŁ1500 etc. And they have a relatively low maximum balance where interest is payable.

Despite all this, if you're looking for zero risk reasonable cash rates, the OP has got the right idea. It's a lot of faff, but he will be maximising what's available out there at the moment.
Original post by Jennie1987
It's completely worth it


So what do you do and how much money did it make you in 2016?
Original post by Reality Check
Yes, you're right with this. Without researching each account, I don't know the exact details, but you are right to say that most of these have a minimum pay-in amount per month, and sometimes the rates are marginal, i.e. 1% on balances up to ÂŁ750, 2% from ÂŁ750 - ÂŁ1500 etc. And they have a relatively low maximum balance where interest is payable.

Despite all this, if you're looking for zero risk reasonable cash rates, the OP has got the right idea. It's a lot of faff, but he will be maximising what's available out there at the moment.


Come to Switzerland, here you pay your bank to take your money :wink:

And I suppose I just probably couldn't bear the hassle. I would try to invest anyway, but I supposed for a risk averse person 3% is not bad at all.
Original post by yudothis
Come to Switzerland, here you pay your bank to take your money :wink:

And I suppose I just probably couldn't bear the hassle. I would try to invest anyway, but I supposed for a risk averse person 3% is not bad at all.


This is the problem in the UK - we've had free personal banking for so long that people entirely baulk at the idea of having to pay ÂŁ20-odd a year for a debit card, or have to pay for direct debits, standing orders and paying in cash like a business has to. I don't know how long the free banking model can go on for, now regulation has rather curtailed some of the more egregious methods banks were formally using to top up their retail profit.
no.
My daddy is a very wealthy man with over $5,000,000 invested in property. he even bought me a $1000 desk. Personally i have 32 banks accounts but i'm sure having only 12 is still adequate.

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