Opening a second bank account

You can open a second bank account. Discover the pros and cons of doing so.

You can 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

Table: sorted by switching bonus
Name Product Ratings Interest (AER) Arranged overdraft Key benefits Link Representative example
first direct
We say
★★★★★
★★★★★
You say
★★★★★
★★★★★
0%
39.9% EAR variable
£100 when you switch
Go to site
Current account switch service guarantee badge
Plus earn 1.00% AER/gross with the linked Regular Saver Account and access a £250 interest-free overdraft (subject to status)
Receive £100 when switching using CASS and pay in at least £1,000 within 3 months of account opening. New customers only who haven’t held a first direct account or opened a HSBC or M&S Bank current account since 1 Jan 2018. T&Cs apply. Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at 30.5% (0% EAR variable p.a on first £250, 39.9% thereafter).
Starling Bank
We say
★★★★★
★★★★★
You say
★★★★★
★★★★★
0.05%
15% EAR variable
Award-winning current account, apply in minutes
Go to site
Current account switch service guarantee badge
No fees for spending or withdrawing cash overseas - currencies are converted at Mastercard’s standard exchange rate
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 15% EAR variable.
Santander
We say
★★★★★
★★★★★
You say
★★★★★
★★★★★
0%
39.94% EAR variable
Interest and fee free overdraft
for first four months when you switch
Go to site
Current account switch service guarantee badge
Up to 15% cashback at a range of major retailers
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable.
Cashplus
We say
★★★★★
★★★★★
0%
N/A
Guaranteed acceptance plus a credit building feature
Go to site
Account fee of £5.95 per month.
ThinkMoney
We say
★★★★★
★★★★★
0%
N/A
Guaranteed acceptance
Go to site
Current account switch service guarantee badge
Earn cashback on your purchases when you shop through the ThinkMoney rewards portal
Account fee of £10 per month or £15 per month.
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Compare up to 4 providers

Table: sorted by interest rate, promoted deals first
Name Product Account type Withdrawals Min. opening balance Interest rate Apply link
FCMB Bank (UK) – Raisin UK - 3 Year Fixed Term Deposit
FCMB Bank (UK)
Fixed-rate bond
Withdrawals not permitted
£1,000
1% AER fixed for 3 years
Go to site
View details
Aldermore
Fixed-rate bond
Withdrawals not permitted
£1,000
1% AER fixed for 5 years
Go to site
View details
Aldermore
Fixed-rate bond
Withdrawals not permitted
£1,000
0.9% AER fixed for 4 years
Go to site
View details
FCMB Bank (UK) – Raisin UK - 2 Year Fixed Term Deposit
FCMB Bank (UK)
Fixed-rate bond
Withdrawals not permitted
£1,000
0.88% AER fixed for 2 years
Go to site
View details
Royal Bank of Scotland
Regular saver
Withdrawals not permitted
£0
3.04% AER variable

View details
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Compare up to 4 providers

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.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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