Can I have two bank accounts?

I just have a normal bank account with HSBC and this is the account I used to apply for student finance into when I go to uni in Sept so that's where the money goes into from student finance.

I need to get an overdraft soon but I don't want it with HSBC because they don't have the best offer, there are better ones out there, so I'm just wondering if it's possible to have two separate accounts? Or would I have to switch banks if I wanted an overdraft from another bank?

Reply 1

kastiel

Of course you can have two different accounts!

I have 3 in total. 1 with one bank, and 2 with another all for different reasons. (ISA, Savings, Everyday Use).
It gets a tad confusing sometimes, but running two accounts will be fine. Just go into the branch and ask to open up a new account :smile:

But be sure to shop around for the best interest and rates!

Reply 2

Hedgeman49

Original post by kastiel

But be sure to shop around for the best interest and rates!

OP doesn't want savings or an ISA, they want two student current accounts.

In short no you can't because they will require you to have your student loan paid into your account. I know some people who have got around it by shuffling money around but if you get caught out they will shut down your account.

Reply 3

Darkwarrior23

No please don't, national security service will track you down and armed police will barge through your door.

Reply 4

AskAdnan

Why are you looking for an overdraft when you are an student and already on student finance? would be a terrible idea for you to pile up debt during ur student life and keep paying it till you get old... better start saving in additional online accounts HSBC offers with its current account.

Reply 5

tehFrance

The question should be whether you can get an overdraft in the first place, you're about to start uni and will most likely not have any credit, good luck with getting a limit of a decent size... Apply for a credit card instead.

Reply 6

katehlouise

Original post by thesimplequidcom

Are you serious? Most students will need an overdraft.
My student loan covers just my accommodation, with around £100 spare for the year. I work during term time, and I still need my overdraft to help me along.

OP: If you apply for a student account, you'll get the overdraft with it. Some banks have better deals obviously. I have two bank accounts, but one is a normal current account (my original) and the second is my student account (the one I use). I have no idea about having overdrafts with two accounts, if that's what you're asking. I should also add - the bank accounts are at two separate banks.

(edited 9 years ago)

Reply 7

Rob da Mop

Original post by tehFrance

When I was looking for student accounts I couldn't find one that wouldn't give me a £1,500 overdraft by third year.

Reply 8

tehFrance

Original post by Rob da Mop

When I was looking for student accounts I couldn't find one that wouldn't give me a £1,500 overdraft by third year.

Yes by third year for a student* account should you fulfill credit checks and the T&Cs... Always read T&Cs. Do you have a student account yet or not as that's unclear, if you do you can't apply for another one and you'll have to go for a bank that offers an overdraft for £6/mo plus interest, you may as well go for a credit card in that regard as you'll skip out the £6/mo and only pay interest.

What's your credit like right now, have you had credit in the past or not?

*You're offered this as they expect you to be earning more than you borrow when you graduate.

Reply 9

AskAdnan

This is a myth that you need an overdraft.. if you can save just £5 a week, by the end of third year you could have £790... do u need any overdraft greater than this at one point in time? I doubt.. at most, we need £100 to get going if we are earning.. so why incur cost and risk losing your credit history?
well, if you are ready to pay the price overdraft is good option but if you can be just disciplined, you can save a lot by just saving £5 a week..

getting a second bank account for overdraft is a killer idea.. it is certainly going to hurt you but if you just need it for better managing your money u can have another normal current accounts. Lloyds Classic is good...

Reply 10

a729

Original post by mariocasas

You would have to open a student bank account else where. You can only have 1 student account btw.

I have 9 current accounts- only 1 is a student one. There's no limit on how many ordinary accounts you can have .

Reply 11

CrawfordDave

Just open up a student account elsewhere and change your bank details over on student finance by phone or online . As long as your HSBC isn't also a student account you'll be fine. If it is just close the account down or ask for it to be changed to a normal current account.

You can request an overdraft but it isn't required if you are good at budgeting your money.

Whatever you do DON'T get a credit card. If you can't keep up repayments you can get yourself into a lot of unnecessary debt which will ruin your credit score and affect your chances of getting loans and mortgages in the future.

Posted from TSR Mobile

Reply 12

The_Internet

Original post by mariocasas

Lol definitely! I think I have around 7 accounts now. I need to open a new product at Lloyds, and a new bank account entirely at TSB - so I'd have 8 bank accounts when I do that

Just need to set two direct debits up at Halifax by paying money in to (rubbish) savings accounts, upgrade it, get a club Lloyds account, push the same direct debits through, push the minimum amount of money in every month, and get a TSB Plus account, and push the minimum amount of money in every month

And then that SHOULD be it (for now) - I might look in to other banks, when looking for mortgages. For now, Im just "missing out" on:

4% savings at Lloyds
5% savings at TSB
£5/month at Halifax, which is actually technically around 32%, because I always have £187.50 in there

Original post by CrawfordDave

Whatever you do DON'T get a credit card. If you can't keep up repayments you can get yourself into a lot of unnecessary debt which will ruin your credit score and affect your chances of getting loans and mortgages in the future.

Posted from TSR Mobile

This is rubbish. Like I've said before, credit cards are like fire. You can either use them properly, and you get what you want and you can even be rewarded

If you dont use them properly, you'll get burnt. Credit cards are entirely a personal thing

IF you know that you'll just spend, spend, spend, then yes credit cards are terrible, because they'll send you spiralling in to debt, but IF you use credit cards, to pay for things, with money you have, they can be good for building up credit, and for being rewarded

Let's say you spend £1000 on credit/month (Money you have) (Using £1000 because it's an easy figure)

Let's also say that you get 3% AER at your bank (which is around 0.25% each month)

Let's also say that this credit card gives you 0.5% cashback

By spending £1000 on credit, you save

£5 because of the 0.5% cashback

And you make:

Around £2.50, because the money goes out out of your bank at the end of the month, so you've "made" £7.50 just by diverting your spending from debit cards, to credit cards. Not much I know, but it's around £90/year, just by choosing a different card, which you can then turn in to £95 by pushing £90 in to Santander 123, getting the interest (£92.70) and then pushing that money in a nationwide ISA, making £95.02

Then there's also things like section 75 protection that all cards give, and certain cards are good for buying things in other currencies, or overseas ie:

Spend $1600 abroad, using a Santander 123 debit card, and let's say that the exchange rate is 1.6 USD to 1 GBP

Santander charge 2.75% as the exchange load, effectively making the exchange rate 1.556, so $1600 has now cost you £1028.28

They also charge you a £1.25 spending charge, so the $1600 has cost you £1029.52. Let's also say you earn 0.25%/month, so a loss of £2.50, which makes your $1600 cost £1032.02

Compare that to a "top travel card" (which are normally ALWAYS credit cards) You'd pay £1000 for the same items, or 3.2% less.

Effective exchange rate: 1.55

If you have a Lloyds or TSB,expect to be burnt slightly further, where that would cost you £1031.82

Let's say that if you're with Lloyds, you earn 4% AER, which is 0.33%/month, which is a loss of £3.30, so a total cost of £1035.12

This has now effectively cost you 3.512% more

Effective exchange rate: 1.546

Let's say that if you're with TSB, you earn 5% AER which is around 0.41%/month which is a loss of £4.10, so a total cost of: £1035.92

This has now effectively cost you 3.592% more

Effective exchange rate: 1.545

(edited 9 years ago)

Reply 13

tehFrance

Original post by CrawfordDave

Unfortunately in order to get a mortgage you need a good credit score and the best way to get one is with credit cards, he'd need one at some point so may as well get one now.

Reply 14

CrawfordDave

Original post by tehFrance

Unfortunately in order to get a mortgage you need a good credit score and the best way to get one is with credit cards, he'd need one at some point so may as well get one now.

I agree that if used smartly, they can help build a credit score but knowing the majority of students I'd be concerned that it would be more likely to create bad debt.

By all means it's a personal choice but I'd advise against a credit card until after a student graduates and has found full-time employment at least.

Reply 15

CrawfordDave

Also payments by direct debit aid building a credit score, as long as you make the payments on time that is.

I do this through my mobile phone contract.