A question we’re asked a lot is can you have more than one current account? To put it simply, yes, you can have more than one current account across multiple different banking platforms if you wish!
Managing your personal finances involves making various important decisions, including the number and types of bank accounts to have. While some individuals choose to manage all their banking needs from one, others opt to open multiple current and savings accounts.
Different current or bank accounts can offer you many different incentives such as cashback rewards, travel insurance or a credit facility.
Why Consider Having Multiple Bank Accounts?
Managing Different Financial Goals
Having multiple bank accounts allows individuals to segregate their funds for different purposes. For instance, they can have one dedicated to emergency savings, another for regular expenses, and a separate one for long-term savings or investments. This segregation makes it easier to track progress towards various financial goals and avoids the temptation of dipping into funds earmarked for specific purposes.
Improving Financial Organisation
Opening multiple current and savings accounts can greatly enhance financial organisation. Individuals can allocate specific streams of income, enabling them to clearly see how much they have for spending, saving, and investing. This not only fosters better financial habits but also simplifies budgeting and planning for future expenses.
Maximising Interest Rates and Benefits
Having multiple accounts can enable people to capitalise on different interest rates and benefits offered by various banks and building societies. By strategically distributing their funds, individuals can take advantage of the best interest rates and rewards, thereby maximising their returns on savings and optimising the benefits associated with each account.
What You Should Know Before Opening Multiple Current Accounts
When deciding on the number of accounts to open, it is essential to consider individual financial circumstances, such as income sources, spending habits, and financial goals. Some may find that managing two works well for them, while others may need more than two to effectively manage their financial affairs.
Impact on Credit Score
Opening multiple bank accounts can impact an individual’s credit score. While each new one can temporarily lower your score due to a ‘search’ on your credit report, effectively managing these accounts and maintaining a healthy financial behaviour can mitigate any negative effects and even result in a positive impact on the credit score over time.
Understanding the FSCS Coverage
It is important to be aware of the Financial Services Compensation Scheme (FSCS) coverage when considering opening multiple accounts. The FSCS provides protection for deposits in the event that a bank or building society becomes insolvent. By understanding the coverage limits, individuals can ensure that their funds are adequately protected.
What Types of Accounts are Available?
There are plenty to choose from, you just need to find one that suits your needs:
Suits Me® Account
Suits Me® offers three types of accounts; Essential, Premium and Premium Plus. Each comes with its own benefits and features including our exclusive cashback reward programme. However, as standard all three come with an easy to use app, and a contactless Mastercard® debit card at no extra cost.
If you don’t currently have an account or are looking to switch provider, we recommend our Premium Plus Account. However, if you need a secondary account then we suggest our Premium Account.
Applying for a Suits Me® account is quick and easy using our online application form. Once you’ve applied, your account will be open and ready to use within three minutes and you’ll gain access to your account number, sort code and mobile app whilst you wait for your debit card to arrive in the post.
You can open a Suits Me® account without verified proof of address or Photo ID and opening a Suits Me® account does not impact your credit score.
Basic Current Accounts
A basic current account is a perfect option if you have a poor credit score or limited credit history. it gives you all the standard features such as direct debits, bank transfers and ATM withdrawals but without all the added extras. However, you don’t have access to an overdraft facility or line of credit.
Packaged Current Accounts
A packaged bank account comes with a little extra on the side, such as free travel insurance or breakdown cover. Some come with discounts of shops and restaurants. However, you may want to check if you already receive any of these perks as there’s no point in paying for breakdown cover twice.
They usually come with a monthly fee and are usually subject to a credit check before being approved. You may also need to deposit a certain amount of money each month to be able to qualify.
Cashback Current Accounts
Cashback current accounts allow you to earn money back on your purchases, but this depends on which you choose. Some, including us here at Suits Me®, offer a percentage back on purchases made in certain shops, whilst others offer a percentage discount of around 1%-2% on household bills.
However, it’s worth noting that most come with a monthly fee, so you need to weigh up if you’ll make the most of the cashback rewards.
If you’re interested in our exclusive cashback reward programme, check out our extensive list of retailers who offer you cashback ranging from 4% to 17%.
High-Interest Current Accounts
A high-interest current account means that you get your money working as hard for you as possible by earning interest on your balance.
However, usually with these, there is a strict criteria you have to follow, including making a minimum deposit each month or having to set up a certain number of direct debits or standing orders.
Before signing up you should check out the terms and conditions surrounding your interest payments to ensure there are no restrictions you need to be aware of. Additionally, you need to ensure that the high level of interest isn’t added for a short period of time.
Student Current Accounts
If you’re heading off to university, a lot of student current accounts offer overdrafts with 0% interest for a long period of time.
Some student accounts come with lots of freebies that can tempt you such as music subscriptions and mobile insurance whilst still giving you the access to banking that you need.
However, although the interest-free overdraft period remains in place for a lot longer, it won’t last forever, so you will need to be out of your overdraft by the time you end university to avoid any overdraft fees.
