Opening a second bank account
You can open a second bank account. Discover the pros and cons of doing so.
Can you open a second bank account?
There are few, if any, banks that will restrict you from opening a current account on the grounds that you already have one.
However, it’s worth knowing that a lot of the incentives on offer with current accounts are only made available if you switch from your existing provider.
Compare bank accounts to open a second account
Benefits of opening a second bank account
It’s more common than you may think for people to have two bank accounts. Here are the main benefits of having two.
- It becomes easier to budget and manage your money. You can use different accounts for different categories of purchases.
- Most current accounts cap the amount of money you can earn interest on. By opening two current accounts, you can increase the amount and earn more interest.
- You may be able to take advantage of customer incentives from multiple banks (although some are only available to those who switch).
- You can take advantage of different rates available with different banks. Maybe one current account has a great rate on international transfers, while the other offers cashback with various UK retailers.
- It may be possible to open two overdrafts and therefore have a bigger emergency fund to fall back on.
- If one of your debit cards is blocked or lost, you now have a back-up.
How many accounts can you open with one bank?
Technically, you can have as many bank accounts as you like.
However, be aware that you are likely to be credit checked whenever you open a new bank account. Some bank accounts also require you to make a minimum monthly deposit in order for you to make use of their incentives.
How many bank accounts should you have?
That depends on you as an individual.
While some people might find it easier to budget with two bank accounts. Others might find it too complicated. If you have a bad credit score, you may find it more difficult to open a second bank account.
However, the advantages of opening at least two bank accounts would appear to outweigh the downsides.
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