Can I have more than one bank account?
Current accounts offer a wide range of benefits, from cashback to rewards, and there are benefits to having more than one. Our guide explains everything you need to know.
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
Applying for several bank accounts within a short timeframe can impact your credit score
It can be a bonus to have multiple accounts, so you can take advantage of all of the benefits on offer. But even if there’s nothing to stop us from opening multiple current accounts, there could be limitations to consider.
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.
But even if there’s nothing to stop us from opening multiple current accounts, there could be limitations to consider.
Some current accounts come with strings attached, such as minimum balance requirements, or a minimum opening deposit.
They may also stipulate setting up of direct debits, which could be complicated if not managed carefully.
Why would I need more than one current account?
You may have different accounts for different reasons, such as one for your savings, 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.
How to keep on track of multiple accounts
While there are benefits, one of the drawbacks of having multiple accounts is managing them.
Here are a few rules to follow to make it easier to manage multiple bank accounts:
For instance, nominate one for everyday expenses and one for joint finances
Many current accounts require you to put a certain amount away each month, 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.
Regularly log into each account to check the balance, any fees that are being applied, and if any introductory bonuses have ended.
If your situation changes you may not need as many accounts, make a diary note to review the accounts every six months to check they are still beneficial to you.
How to manage multiple bank accounts
How to manage multiple bank accounts
Make sure you check the terms and conditions
Keep track of your account balances
Review your banking needs regularly
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 £85,000 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 £85,000 – the money over this limit wouldn’t ‘t be protected.
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.
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.
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.
Will having two or more current accounts damage my credit score?
Not necessarily, no. However, having two or more current accounts won’t necessarily 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 better your credit score the more chance 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 how much you need, if it will actually save you money, 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. It's generally a good idea to have at least two savings account for this reason.
For instance, you may want to reserve an easy-access savings account for your emergency fund - to ensure it's kept separate from other savings pots. While another savings account could be where you store money for longer-term goals, such as aa house deposit.
If you're happy to put your money away for longer, you might also look into opening a fixed-rate savings account, or an ISA.
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 a new current account quickly and simply with our comparison tools.
We collaborate with the UK’s leading banks to present a wide range of options, sortable by various factors to ensure you find the perfect fit for your financial life.
It’s important remember that the ideal banking setup is as unique as your financial goals. 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.