Why you shouldn’t rely on one current account

Opening a number of financial institution accounts might truly assist you to save (Image: Getty Photos/iStockphoto)

You’ll know by now I’m a little bit of a cash geek, and a technique that’s manifested itself is that I've 18 completely different present accounts.

No, that’s not a typo: 18. You is likely to be pondering that’s too many — it's, greater than half are previous accounts or ones I opened so I might evaluation them — however I think about an honest variety of you might be saying, ‘Dangle on, you'll be able to have a couple of checking account?’

This can be a frequent false impression, and one I’m at all times at pains to focus on might be fairly dangerous.

For Monzo and Nationwide clients, the previous couple of weeks had been a living proof. Each banks skilled transient technical issues that meant both funds had been declined (Monzo) or cash wasn’t being transferred in or out (Nationwide). This left loads of indignant individuals within the lurch.

And although this isn’t an on a regular basis prevalence, it’s not unusual. Over the previous couple of years we’ve seen points at many mainstream banks. If techniques go down and you may’t entry your cash, you want a back-up.

You’ll clearly must hold some money in there, so the Virgin Cash M Plus present account is an effective choice, with 2.02% curiosity paid on balances of as much as £1,000.

I’d go additional, with 4 or 5 accounts supplying you with a mixture of higher banking and free money.

Having completely different accounts will help you enhance your budgeting abilities (Image: Getty Photos/iStockphoto)

To your important account I’d contemplate Starling Financial institution or Monzo. These are app-only banks, however have quite a few options that make all of the fundamentals a lot simpler.

Should you ever use your overdraft then one choice is the Nationwide FlexDirect account.

For the primary 12 months you will get a large overdraft at 0% curiosity, an enormous distinction to the 40% you’re doubtless paying elsewhere proper now. I’d take a look at the Santander 123 Lite account on your payments.

It comes with a £2 month-to-month charge however you'll earn as much as 3% cashback on bills corresponding to vitality and broadband payments. This one additionally makes a very good joint account for those who’re splitting these prices.

Cashback can be earned for a 12 months with Chase Financial institution UK, with 1% again on each £1 spent. Transferring over cash out of your important account for spending by way of this card might additionally assist you to hold to a set price range.

You could possibly additionally take a look at reward accounts which pay a bonus every month for those who observe a number of circumstances. My choose is the Halifax Reward account. You’ll earn £5 a month with little or no effort.

You could possibly add extra, however I’d stick with some or all of those for now and see the way you go.

Andy’s prime 5 present accounts

1. Starling Financial institution

On a regular basis banking

None

2. Virgin Cash M Plus

Again up account with 2.02% AER on financial savings of as much as £1,000

None

3. Chase Financial institution Earn

1% cashback on all spending, sticking to budgets

e: None

4. Santander 123 Lite

Earn as much as 3% cashback on payments

£2 a month

5. Halifax Reward

Make £5 a month for those who spend £500 on the debit card

None for those who pay £1,500 into the account every month

For extra particulars on these accounts head to becleverwithyourcash.com/banks

Andy’s who to observe: Di Coke from SuperLucky

Final month I received £75 by way of a PayPal prize draw, all because of Di Coke, who runs the SuperLucky weblog.

It’s a paradise for anybody eager to attempt ‘comping’. You’ll discover lists of which competitions to enter and which to keep away from, in addition to insights into how one can improve your possibilities of profitable.

Di Coke can educate you the best way to improve your possibilities of profitable

Di’s money-making tip of the week

Di says: ‘Discover competitions by following your favorite manufacturers and native companies on social media.

‘Instagram and Twitter giveaways are fast to enter, and also you received’t even want at hand over any private particulars until you win!’

Andy Webb is an award-winning blogger and podcaster from Be Intelligent With Your Money. Comply with Andy on Twitter, YouTube and Instagram by way of @andyclevercash

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