Can I have more than one bank account?
Key takeaways
Different accounts offer varying features from cashback and interest to insurance and overdrafts
Having multiple bank accounts won’t necessarily damage your credit score, but there are considerations to keep in mind
Multiple overdrafts can create the impression of stretched finances so be cautious about dipping into them
If your main goal is growing your money, a savings account, Cash ISA or investment account may offer better long-term value than opening another current account purely for incentives
Having multiple bank accounts might seem like a smart move, allowing you to better manage your money and take advantage of all of the benefits on offer.
But even if there’s nothing to stop us from opening multiple current accounts, there are usually limitations to consider, which might mean your money is working harder elsewhere.
Can I have more than one current account?
The simple answer is yes, there are no explicit rules that prevent you from opening several current accounts.
However, if you want to benefit from the promotional offers that come with opening a new account you’ll often need to comply with the terms and the conditions.
This could include a minimum opening deposit, having a minimum payment coming into the account each month (usually your salary), or setting up a minimum number of direct debits.
In most cases the question shouldn’t be ‘Can I have more than one account?’ but instead justifying ‘Why should I have more than one account?’
Can I have more than one bank account with the same bank?
Yes, you can often have multiple bank accounts with the same financial institution.
You may also be able to have different types of accounts with the same bank, such as a current account and a savings account or a regular saver and a fixed-rate ISA.
It's not uncommon for customers to have both individual and joint accounts under their name within the same bank too.
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of money if a bank were to go bust. This works on a per person and per financial institution basis, so if you have multiple accounts with one bank – and the amount is more than £120,000 – the money over this limit wouldn't be protected.
Why would I need more than one current account?
You may have different accounts for different reasons, such as one for your everyday expenses and one for joint household bills.
Different current accounts can have varying features and benefits, from those paying interest on your balance, for example, to those paying cashback.
Many current accounts also have offers for new customers, including one-off cash sums, which you could take advantage of when you open a new account.
Having more than one account might also help with money management. For example, a joint account with a housemate focused on covering household bills could be handy and allow you to keep your other personal finances in a separate current account.
However, having multiple current accounts might not be the best way to support your finances. If you have additional funds, opening a dedicated savings account or ISA could help grow your money at a greater return.
What are the advantages of having multiple bank accounts?
There are several reasons why you might consider opening multiple accounts:
Perks and rewards
Banks often look to draw in new customers by offering incentives when opening bank accounts, such as cash bonuses or high interest on in-credit balances. There can also be rewards such as cashback on bills or travel insurance as part of a paid-for current account package.
Easier budgeting
Having separate bank accounts for different expenses can simplify managing your money and ensure you're covering all your financial bases.
Building a savings pot
Secondary bank accounts can be earmarked for savings. Although, an easy access or regular saver account might be a more interest-friendly option. If you can lock your money away for longer, a fixed rate bond or stocks and shares ISA could also offer higher returns.
Keeping business separate
For those who are self-employed, a separate business bank account is important for accounting purposes.
A useful back-up
An additional account can provide peace of mind, serving as a fallback if there’s a problem with your main account – such as if you lose your debit card.
Financial protection
The Financial Services Compensation Scheme protects your money up to a certain limit per financial institution, so multiple bank accounts can increase the amount of money protected.
Spending abroad
Specialised foreign currency accounts might save you money on fees while traveling, although fee-free regular current accounts and credit cards for spending abroad could also serve this purpose.
Trying another bank
Opening a second account can be a risk-free way to experience a new bank's services.
What are the disadvantages of multiple bank accounts?
On the flip side, here are some potential drawbacks to consider:
Keeping track of your money
More accounts mean more numbers to monitor, which can complicate your financial oversight.
Higher risk of fraud
The more accounts you have, the higher the risk of one falling into the hands of a fraudster.
Could affect your credit score
Each time you apply for a new account, your credit score may take a temporary hit. Additionally, having multiple overdrafts might give an impression of financial strain.
Paying multiple fees
Some bank accounts come with monthly fees that could outweigh the benefits if you're not maximising the potential rewards from each account.
How to keep track of multiple accounts
While there are benefits to having more than one bank account, one of the drawbacks of having multiple accounts is managing them. Here are a few tips to help.
Make sure each account serves a purpose
Whatever the reason for opening an account, make sure you use it for that function. For example, you might not want to use a joint account set up for household bills for everyday spending. Or you might have a dedicated account that clears your credit card balance each month.
Check the terms and conditions
Many current accounts require you to pay in a minimum monthly amount or to set up a direct debit in order to receive the introductory bonus. Keep an eye on what’s required and the dates for arranging these.
Keep track of account balances
Regularly log into each account to check the balance, any fees that are being applied, and if any introductory bonuses have ended.
Review your banking needs regularly
If your situation changes you may not need as many accounts. Make a diary note to review the accounts every few months to check they are still beneficial to you.
Will having two or more current accounts damage my credit score?
Not necessarily, no. Just having two or more current accounts won’t damage your credit score, but it could have a negative impact if you start dipping into multiple overdrafts – making it look as if your finances are becoming stretched.
Applying for several bank accounts within a short timeframe can also lead to multiple hard inquiries on your credit report. This can lower your credit score temporarily.
Is it easy to open multiple bank accounts?
The process of opening multiple bank accounts is straightforward, and you can usually do this online, via an app, or in a bank branch.
However, it might take some time to supply all of the information needed, such as proof of your address and identification.
You may also need to set up multiple direct debits and ensure a minimum amount is deposited into your accounts each month.
Can I have two current accounts if I have bad credit?
Having bad credit can complicate the process of opening multiple bank accounts, particularly those with overdraft facilities.
Each bank account provider has its own criteria and your credit score will be checked before you’re accepted.
The stronger your credit history, the better your chances of being accepted. Our guide gives you simple tips on how to improve your credit score.
Personal Finance & Insurance Expert
Our expert says
"The current account market is extremely competitive with providers trying their hardest to attract and retain new customers. This means it’s possible to get a wide range of rewards when you sign up to a new current account, from cash freebies to access to exclusive savings accounts. But before you apply for a new account, it’s well worth researching the benefits if there are any fees to pay, and if you’ll meet the requirements for the account in the first place."
Can I have multiple savings accounts?
You can. You're generally free to open multiple savings accounts with a single savings account provider or open them with a range of banks/institutions.
However, it's worth noting that some savings account providers insist that you hold a current account with them to qualify. Others may impose minimum balance requirements.
Why might I want multiple savings accounts?
Having multiple savings accounts can be a good way to keep track of savings goals.
For instance, you may want to reserve an easy-access savings account for your emergency fund while another savings account could be where you store money for longer-term goals, such as a fixed-rate savings account for when you need a new car or a Lifetime ISA for a house deposit.
Other useful guides
We have a range of guides to give you more information on current accounts and savings accounts. These include:
Compare bank accounts with MoneySuperMarket
Comparing current accounts can be daunting, but MoneySuperMarket is here to help. You can find and compare new current accounts quickly and simply with us.
We collaborate with the UK’s leading banks to present a wide range of options, and you can sort by the key features of each account to ensure you find the perfect fit.
Carefully consider the perks, potential pitfalls, and your personal circumstances to make the most of your banking experience.
Whether you're a savvy saver, a keen investor, or simply looking to streamline your spending, the right combination of bank accounts can be a powerful tool in your financial arsenal.
Frequently asked questions
Can I close a bank account I no longer use?
Yes. If an account no longer serves a purpose, closing it can make managing your finances simpler. Before doing so, make sure all payments have been moved elsewhere and the balance is zero. Some packaged accounts may also require notice.
Is there a limit to how many current accounts I can open?
There’s no formal UK-wide limit, but individual banks may restrict how many accounts you can hold with them. Your ability to open more accounts may also depend on your credit profile and banking history.
Should I keep an old current account open?
Sometimes. Keeping an established account open can help maintain your banking history and provide a useful backup. However, if it charges fees or no longer offers value, closing it may be the better option.
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Rebecca Goodman
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Rebecca is an award-winning financial journalist with over a decade of experience writing for print and online media. Her mission is to take the jargon out of personal finance and to help everyone...
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