How Many Current Accounts Can I Have?
Updated: 3 days ago
How many current accounts can I have? That’s an important question, and the answer to it depends on where you live, what type of account you have, and whether or not you want to open another account in the same institution, or with the same bank.
We’ll help you figure out exactly how many current accounts you can open based on your unique situation with this helpful guide on how many current accounts can I have.
In short, you can have as many current accounts as you want, with as many current account providers as you choose. However, you should really only open as many current accounts as you actually need.
Current Account Basics
You need a current account to manage your money and make everyday payments.
A current account allows you to receive income, pay bills and manage your finances. Most companies will pay their staff in arrears (after a period) and employees need somewhere to receive their income.
Likewise, companies need to pay bills in advance (before a period), so often pay them via direct debit into those supplier’s current accounts. It is also where you go to get loans paid if needed or write cheques for household bills or other payments.
A good way of knowing whether you should open a new account or not is by asking yourself what is it that you want to do with your money.
What are Current Accounts?
There are a lot of different types of bank accounts out there, so it’s no surprise that some people may be confused about what they should choose.
A checking account is an account with a bank or credit union that lets you write checks or use an ATM card to withdraw money and pay bills, similar to a savings account.
However, checking accounts also typically come with other features like check overdraft protection and interest-bearing features. Some banks require minimum balances or certain usage fees if your balance falls below a set amount.
To keep things simple, most people will want a single checking account for everyday purchases and another separate savings account for emergency funds, short-term goals and other special expenses. So how many banking accounts can you have?
Is it possible to get too many Current Accounts?
If you currently hold multiple Current Accounts, you need to ensure they are free to use, and not incurring a monthly fee.
If you do have some accounts that are incurring monthly fees, then consider whether this is necessary, and close any that have no purpose.
If on the other hand you discover that your current accounts are free to use, then there is nothing stopping you from having as many as you need.
That said, there is no point in having so many that they service no purpose, or get too confusing to handle effectively.
How Many Current Accounts Can I Have - The Bottom Line
The number of bank accounts you should open depends on your overall financial goals and how much money you want to put into each account.
If you’re trying to build a portfolio with retirement in mind, think about having one checking and savings account, plus a separate ISA or SIPP for retirement.
If your goal is to start an emergency fund, separate those funds from your business savings. And if you want to invest in more than one fund or actively trade stocks, then go ahead and open multiple investment/savings accounts.
But whatever you do—and as tempting as it may be—don’t let any checking account carry a balance past 30 days without transferring some of that cash into a higher-yield savings account or investing it.