Can I have more than one bank account?


(Beatrice Borbon) #1

Think you can only have one bank account?

We’ll be writing answers to some common questions about banking and managing your money, so please let me know if you have any suggestions on what you’d like to see next!


(Nick) #2

Keeping your money protected: If the money in your current account is over the £85,000 limit for FSCS protection, you might want to spread your money across multiple current accounts. This will guarantee it’s protected if anything should happen to your banks.

I didn’t see anything in the guide about the fact that sometimes banks are connected when it comes to FSCS protection, and this is something to bear in mind if you’re spreading money around for that reason. For example, people who bank with First Direct won’t have any extra protection if the next account they open is with HSBC.


(Chris Lavender) #3

You also get protection over £85k if you have an unusually high balance at the time of your account provider failing. E.g. received an inheritance or recently sold a property. It’s not automatic though, you manually need to apply in those circumstances.


(Jack Donovan) #4

Who the heck thought they could only have one bank account? :S


(lee) #5

Generally no = :+1:
With Monzo yes = :-1:

Maybe send that around internally? Especially to the pots people :stuck_out_tongue_winking_eye:

(On a unrelated note you must have one of the coolest sounding names ever)


#6

All the language is about switching. I can see how some people would think that means you can only have one


(Jack Donovan) #7

Absolutely agree.


(Jack Donovan) #8

This still doesn’t answer my question… Who the hell thought you could only have one bank account :rofl:


#9

I used to think that… about 5 years ago…

(Don’t judge me)

:face_with_hand_over_mouth:


(lee) #10

I know I mean what other name is all kill bill, whiskey and the best biscuit ever made - in two words?! :thinking:


(Jack Donovan) #11

To be fair, you might be on to something. Might explain why everybody I talk to is so hesitant to give Monzo a go…


(Beatrice Borbon) #12

Really good point! I’ll add that in to clarify :smile:


(Beatrice Borbon) #13

@lee-am @jdon.xyz Haha thanks!!! :bowing_woman: :crossed_swords: :tumbler_glass: :cookie:

Wish I could say I chose it myself…


(Beatrice Borbon) #14

During the upgrade we found a good few people were under the impression you could only have one current account! Of course there are probably a few different reasons why. Not least because financial education can be so fuzzy and all manner of myths around money seem to prevail!

I think @Rat_au_van’s right about one of them. It could also be because people take see then norm as a rule, and think that just because most people have one current account at one bank, that that’s a requirement rather than a choice :woman_shrugging:

Also, this is by no means scientific but:

50


(Chris Lavender) #15

Seriously though, let us have more than one Monzo account :pray: . I need one to help with my bills :smiley:


(Graham - Mental health professional) #16

Out of interest, how will another Monzo current account assist you and your bills?


#17

I believe it is so they have one account for bills etc and another for spending money. At least that’s the point I’ve read here before


(Graham - Mental health professional) #18

Yes, that’s what I thought and I’ve noticed that plea on a number if occasions, both here and elsewhere. Just wondering why folk feel they need separate accounts when that’s what a current account is there to do.

Perhaps anyone new to banking might be uncertain, in which case maybe we’re duty bound to help?

Just a thought…


(Kevyn) #19

You have multiple current accounts to support budgeting. All your money coming and going from one account can lead to overspending and having weeks with no money or using your overdraft until payday comes around again.

For years I just used one account and I was always £200-£300 in my overdraft each month. Then I started to save up for a house and had to sort my finances out. Therefore I decided to have a spending account and a bills account.

My salary enters account A and my bills come out of that account as usual. I have standing orders set weekly to automatically move money from account A to account B (Monzo in this case) and my savings.

When I run out of money in account B I have to wait until the next ‘weekly payday’. I could cheat, yes, but it physiologically helps better spread my payments as I only look at the balance of account B. I never look at the balance in account A, I treat it as if it isn’t there as any spare money is swept into my savings before payday and I get warning texts if it somehow is about to run out of money (which it is designed to run a surplus).

With this method of conducting my finances I have saved over £15,000 in 2 years from a £30k salary and never use my overdraft anymore. Essentially, I try to imitate https://squirrel.me/ without actually paying for their service.


#20

I feel like pots, rules and committed spending detection would be a better solution. At least then you can see it in one place?