How many bank accounts do I need?

It's common to have a few bank accounts that each serve a different purpose. Here's how you may benefit from having multiple bank accounts and the traps to avoid.

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Alison Banney

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Is just one bank account enough these days? This completely depends on your personal situation, your preferences and how you like to manage your money, of course. Here we go through the reasons why you might need more than one and what to watch out for.

Key takeaways

  • It’s a good idea to have a back-up account, just in case something happens and you can’t access your main one.
  • Different banks offer different perks and benefits, so having multiple accounts lets you take advantage of more.
  • We have a guide on current accounts, so you can compare your actions.

How many bank accounts do I need?

At a minimum, it’s a good idea to have one current account for everyday expenses and perhaps a separate savings account to earn interest on any savings.

But there are numerous other types of bank accounts you might want to open as well, depending on your situation, such as a joint account, an offset mortgage account or a business bank account.

Why you might have more than one bank account

Here are a few examples of when you might need to have more than one bank account:

  • If you want to split up your spending into different buckets, such as bills and personal spending.
  • If you have shared expenses with another person as well as your own personal expenses.
  • If you have a business or side hustle and you want to split up your personal and business income.

Other bank accounts you can open

Revolut Standard

Revolut Standard

8.9 Great
Minimum opening balance£0
Account fees£0
Interest (AER)0% AER
See dealRead review

If saving is your priority, open an account with Revolut and you can put money aside through regular payments or round up your spare change with Revolut Pockets (previously Vaults). This can help you to save faster and you can even set up a Group Pocket with your friends and family to save for a common goal, such as a holiday. What's more, you'll earn RevPoints when you spend on your Revolut card and these points can be turned into perks like air miles. The standard account also gives you fee-free withdrawals of up to £200 a month and fee-free currency exchange on weekdays of up to £1,000 a month.

Chase Current Account

Chase Current Account

7.9 Great
Account fees£0
Interest (AER)0% AER
Go to site

This current account from Chase could be a great option if you'd like an account that pays you cashback and also lets you spend overseas fee-free. Whenever you spend on your Chase card you'll earn 1% cashback for the first year (up to £15 a month). Plus, there are no fees for using your card for purchases or withdrawing cash while you're abroad. An additional benefit is that you can round up your spending to the nearest £1 and the difference will automatically be saved for you - your round-up balance will even earn 5% interest.

Starling Current Account

Starling Current Account

9.8 Excellent
Account fees£0
Interest (AER)0% AER
Go to site Read review

The Starling current account has no monthly fee and could be an ideal option if you'd like an account specifically for overseas spending. There are no foreign transaction fees when you spend on your debit card abroad and no fees for withdrawing cash either. What's more, you can open dedicated Savings Spaces for different purposes, whether that's money to pay for your holiday or money to spend while you're away. The account can be opened quickly via the app, which also allows you to monitor and track your spending, so you'll know exactly how much you've spent while on holiday. There's an optional arranged overdraft on the account too.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable.

Monzo Current Account

Monzo Current Account

9.3 Excellent
Minimum opening balance£0
Account fees£0
Interest (AER)0% AER
Go to site Read review

If you like the idea of budgeting for different purposes, the fee-free current account from Monzo allows you to do just that. You'll be able to set up different Savings Pots for different purposes, whether you're saving for a holiday, a house deposit or a wedding. Interest is paid on your savings pots and you can also take advantage of the round-ups feature that lets you round up your spending to the nearest pound and the difference is transferred into a Savings Pot. You'll be able to monitor all your spending through the app as well as get instant spending notifications.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.

TSB Spend & Save Plus

TSB Spend & Save Plus

9.8 Excellent
Minimum opening balance£0
Account fees£3 per month
Interest (AER)0% AER
see deal Read review
Earn up to £60 cashback annually - ongoing £5 cashback every month with 20 debit card payments per calendar month (excludes cash withdrawals).

This everyday bank account from TSB has no monthly fee and you can earn £5 cashback each month you make at least 20 debit card payments, for the first 6 months. You can also set money aside in different savings pots to help you get better at budgeting and saving, while the Save the Pennies feature rounds up all debit card payments to the nearest £1 and transfers the difference into your savings. You can open the account online and manage it online, by telephone or through the app. There's also an arranged overdraft on the account.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.9% EAR variable. Account fee of £3 per month.

Benefits of having multiple bank accounts

  • Manage your spending. Having different bank accounts for different purposes might help you budget and manage your spending. For example, you could have one account for rent and bills and another for daily purchases like coffee, groceries and eating out.
  • Access different perks and offers. Different bank accounts offer different perks. You might have a bank account that charges no international transaction fees which you use for travelling and online shopping from overseas sites. You could have another account that offers cashback on your daily transactions which you use for your general spending, to take advantage of this offer.
  • Access a more competitive savings rate. Savings accounts with good bonus interest rates will often require you to open a linked current account with them. This is an easy way to earn more bonus interest on your savings.
  • Split up large balances. If you’ve got a large balance, you can split it up between different banks to ensure it’s all protected under the Financial Services Compensation Scheme (FSCS). This scheme protects deposits of up to £120,000 per person per financial institution. So if you’ve got more than this, splitting it up across more than one bank ensures it’s all covered.
  • Manage shared expenses more effectively. Opening a joint bank account that’s separate to your personal account is a great way to manage expenses that you share with someone else. For example rent and bills that you split with a partner or roommate.

Traps to watch out for if you have several bank accounts

  • Look out for extra fees. Some bank accounts charge account-keeping fees, which could mean you end up paying several lots of monthly fees. Some banks only charge this if you don’t deposit a set amount each month. So, if you only deposit money into one bank account but you want to open another account for different spending, check that it doesn’t have an ongoing deposit requirement.
  • Juggling multiple accounts can be more confusing. You might find that juggling several different accounts is more stressful and that you’re losing track of your spending. A good tip to manage this is to keep your accounts with the same bank so you can see them all side-by-side in your mobile banking app.
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Alison Banney is the banking and investments editor at Finder. She has written about finance for over six years, with her work featured on sites including Yahoo Finance, Money Magazine and Dynamic Business. She has previously worked at Westpac, and has written for several other major banks including BCU, Greater Bank and Gateway Credit Union. Alison has a Bachelor of Communications from Newcastle University, with a double major in Journalism and Public Relations. She has ASIC RG146 compliance certificates for Financial Advice, Securities and Managed Investments and Superannuation. Outside of Finder, you’ll likely find her somewhere near the ocean. See full bio

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