2006-11-28 23:43:42 · 9 answers · asked by tulip 4 in Business & Finance ➔ Personal Finance
I have my money kept in two separate accounts. I have a current account that my salary is paid into every month and on the same day a large bulk of that is transferred into another account. This is the account that I have all my direct debits set up from to pay all my bills, mortgage etc and the lump sum that goes in is enough to cover this every month and a little more for "just in case".
Knowing that all my bill money is safe in a separate account and that all my bills are going to be paid on time, means that I know that the money left in my current account is mine to do with as I like, and even if I spend it all in the first week of the month then it is only my social life that will suffer and not my commitments!
So far I have not come accross any cons...
2006-11-29 00:02:31 · answer #1 · answered by Jooles 4 · 0⤊ 0⤋
Sounds like you are doing great to me. Responsible way to deal with the monthly bills. My only suggestions is save some of the extra money. One less dinner out. One less movie, On less expensive coffee, etc. But the money into a saving plan. If you have a tax deferred account start there. Fund as much as possible, especially if you have employee matching features.. Have some cash savings will give you more freedom. Sometime in the near future you will want an expensive item, mostly likely a house. Start funding that dream early and it will be a lot more fun.
2006-11-29 02:21:11 · answer #2 · answered by phifer9807 2 · 0⤊ 0⤋
You don't need to have two accounts, just open an online account with your usual bank, transfer some savings to an internet account and you get a good rate of interest, better than your normal account, just make sure you leave enough in your current account to cover your bills, daily living etc.x
2006-11-29 08:45:07 · answer #3 · answered by RUTH M 3 · 0⤊ 0⤋
well, advantage is that if anything bad hapens with one bank the other account wont be affected, also that if u hav large amounts of money, no1 will know or ask questions. disadvantage: its a hassle dealing with two banks, heaps of diff letters and maybe confusion.
2006-12-05 16:17:43 · answer #4 · answered by hondachick 2 · 0⤊ 0⤋
In addition to the other answers, in the UK the financial compensation scheme pays if a bank defaults (i.e. your deposits are lost). It pays 100% of the first £2K and 90% of the next £33K.
So if you had £4K in a bank and it went bust you would be compensated £3.8K. If you split it between 2 banks and one went bust you would still have the full £4k.
2006-11-29 22:27:23 · answer #5 · answered by Petra 2 · 0⤊ 0⤋
advantages- can move money between the two to get better interest- interest rate tarting, don't have to be tied to one provider to get other products insurance,loans etc. get more access to ATMS, especially if not on LINK system. good way of saving if you don't have card for second account i.e less temptation/opportunity to spend. Also works as slush fund away from prying partner husband etc
disadvantages,lower interest if you split your balances,junk mail doubled trying to sell you things. maybe harder to keep track of balances,more cards in your wallet/purse which you may not use.More pin numbers to remember.
2006-11-29 09:53:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you get into trouble with one, the other may not find out without checking your credit file - which they don't have access to except you authorise them to do so usually when you apply for a credit product.
2006-11-29 21:05:41 · answer #7 · answered by scallywag 4 · 0⤊ 0⤋
the government doesn't know how much you've got. you can save better.
one account will give you lower interest.
2006-11-30 00:04:32 · answer #8 · answered by Dragonfly 3 · 1⤊ 0⤋
You don't risk losing it all.
2006-12-06 12:19:05 · answer #9 · answered by robert m 7 · 0⤊ 0⤋