Can I have more than one current account?
To some people, the idea of opening multiple bank accounts can sound rather alien. It’s normal for many of us to think of the first bank you opened an account with as "your" bank. Is this really the case?
In this guide, we’ll be addressing whether it is possible to have more than one current account. You’ll learn how easy opening another account can be, as well as the potential benefits and drawbacks of doing this.
Having more than one current account
Benefits of having multiple current accounts
Things to consider before opening another current account
Managing multiple current accounts
Can I have more than one current account with the same bank?
Having more than one current account
It is definitely possible to have more than one current account open at any given time. In fact, there are several reasons why doing this would make perfect sense for you. For example, you may choose to have a current account for various different purposes, including:
- Spending
- Travelling
- Direct Debits
- Payments
- Income
- Joint banking, such as a shared bank account.
Benefits of having multiple current accounts
There are numerous potential benefits to having multiple current accounts in your name.
If you want to control how much you spend, having a current account for this specific purpose could be a good solution. For example, some mobile banking apps have useful features that will help to track and categorise your spending.
It also gives you the benefit of only putting as much money in the account as you are comfortable with. This could come in handy when travelling or budgeting.
Having multiple current accounts also allows you to access the various benefits offered by different banks. These perks may include things such as cashback or insurance policies, as well as discounts on goods and services.
Things to consider before opening another current account
There are a number of factors to keep in mind before you open a current account with another bank. For example, opening multiple accounts may impact your credit score. This is especially the case if you start using multiple overdrafts from your different accounts. This can signal financial strain and may cause a hit to your credit score.
Some current accounts come with monthly costs. These may be hard to keep control of if you have a number of accounts.
Managing multiple current accounts
If you decide to open multiple current accounts, it’s important to know your outgoings and budget efficiently.
For example, a current account dedicated to your Direct Debits makes perfect sense if you know what these amount to every month. It’s important that you make sure your account has enough funds to cover the Direct Debits each month.
If your account balance falls below £0, some accounts will allow you to enter an overdraft, which is a form of short-term borrowing. When you use an arranged and/or unarranged overdraft, you will be charged debit interest at an annual interest rate on the amount you are overdrawn by, unless you have an account with an interest free overdraft.
Can I have more than one current account with the same bank?
Depending on the bank in question and the type of accounts, you can open more than one current account with the same bank. For example, you’ll often find you can open both a personal and joint account with many banks, including The Co-operative Bank.
Is it worth getting more than one current account?
Whether having multiple bank accounts is worth it depends on what you are looking for. Having different accounts for different purposes can be a great way to control your spending. It can also allow you to enjoy the various benefits that different banks offer with their accounts.
However, if you’re finding it difficult to manage your finances as it is, keeping your income and outgoings within the same account could help you get a better overview.
Therefore, whether getting more than one current account is worth it for you depends on your financial habits and personal circumstances.
Important things to remember
- Opening multiple accounts is not the same as switching your bank
- Having multiple current accounts may not be right for everyone. You’ll need to consider your own financial circumstances before opening another current account
- Having multiple accounts may come with additional costs.
This content is provided to readers for information purposes only. It does not constitute advice or a recommendation about any product, service or course of action. If you need financial advice you should contact an independent financial adviser.
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