Can I have more than one bank account?

Why would I have more than one account?

• Trying out a new account: In recent years the industry has become a lot more competitive, and each bank offers something different. Using other banks to try out a different bank account can help you see whether the products, services or features of another account suit you. Overdraft limits, for example, differ from bank to bank and therefore might suit different people. Having an arranged overdraft with one bank, however, should not automatically disqualify you from getting one with another.

• You’ve found another provider you prefer: Whether the app's easier to use, they're providing a good interest rate on a savings account, or the bank has a branch near you, you might have shopped around and found a new account you like.

• Taking advantage of offers: Many banks offer cash back or short-term deals to encourage you to switch, so you can make a bit of cash when you open a new account.

• Earning interest: Some banks pay interest on the money you have in your current account. But many have a maximum balance that they pay interest on. Savings accounts and ISAs can earn you interest too but this is often at a much lower interest rate than the rate offered on current accounts. Some savers open multiple high-interest current accounts to get the most out of their money.

• Keeping your money in your current account protected: If the money in your current account is over the £85,000 limit for FSCS protection, you might want to spread your money across multiple current accounts. This will guarantee it’s protected if anything should happen to your banks. Just remember, some banks (like HSBC and First Direct) are linked, so the £85,000 limit applies to the money you have at both banks. 

• Staying organised: If you’re managing a few different incomes or you're looking to open a joint account, you might find it helpful to keep a few different accounts open.

Remember

• Don’t open loads of accounts at once: If you open many different bank accounts in a short period of time, it could negatively affect your credit score and your ability to borrow money in the next few months.

• Check you can meet the minimum requirements: To stop people opening new accounts just to take advantage of signup offers, some accounts require you to pay a minimum amount of money in or out each month. Others might ask you to have a direct debit set up which might make multiple current accounts difficult to manage. If you’re thinking of opening a new current account, remember to check you can meet all the requirements.

How do I open a new account?