Can You Have More Than One Current Account in the UK?

Different current accounts come with distinct features and benefits that suit different needs, which is why sometimes, it might seem appealing to have two or more accounts to take advantage of certain perks and offers.

But can you have more than one current account in the UK and is it a good idea? 

Let’s find out.

Can You Have More Than One Current Account?

You can have as many current accounts as you want across as many financial institutions as you need – some of which you can open without an ID.

Can You Have More Than One Current Account With the Same Bank? 

It is possible to have more than one current account with the same financial institution.

Some banks will let you open a second account, but you’ll still have to meet the minimum requirements and probably deposit some amount to it.

When Should You Get Multiple Current Accounts?

Here are the other advantages of having a second current account.

Earn Interest

Some bank accounts pay more interest on credit balances and almost every bank caps the amount of interest you can earn on it. If you split your earnings into different current accounts, you can potentially earn more interest across your accounts.

Easier Budgeting

Opening a second current account is usually a good idea for better money management.

For instance, you can separate your earnings into different accounts for spending, bills, and holidays. 

Perks and Rewards

Banks often look to draw customers in by offering a variety of incentives to choose them, including rewards such as cashback on bills and even travel insurance as part of the package.

There are also banks that offer money to open an account with them.

FSCS Protection

The Financial Services Compensation Scheme protects up to £85,000 of your money in a financial institution. If you have more than that in your bank account, it won’t be covered if the bank declares bankruptcy or loses the money.

Opening a second bank account means you can take advantage of further FSCS protection. 

Note: Some banks are owned by the same company. Make sure to double-check whether your money is split into bank accounts with different institutions if you want to stay within the FSCS limit. 

Keep Business Separate

If you have more than one job or run your own business, it’s best to keep everything separate in different current accounts. This will help with accounting and figuring out your taxes and the end of the year. 

Account Backup

It’s a good idea to open a second current account as a backup. 

If your main account is frozen for some reason, like a tech failure and you can’t access it, you’ll always have an alternative option to access your money. This can also come in handy in case of theft.

Spending Abroad

Setting up a foreign currency account can help you avoid fees when making transactions abroad or withdrawing money from ATMs. You can also use it to transfer money from your UK current account.

How Can You Manage Multiple Current Accounts?

Having multiple bank accounts has its benefits, but managing them will take a bit of extra legwork too.

Here are some tips on how to stay on top of your accounts:

• Familiarise yourself with the minimum requirements. 

• Use tools to keep track of your finances, like spreadsheets or budgeting apps.

• Regularly check your current accounts and closely follow any bank announcements.

• Limit the transactions between the accounts.

• Use online banking or open an account with a mobile-only bank for better accessibility.

Final Verdict: Should You Open Multiple Current Accounts?

Current accounts are basic bank accounts and almost anyone can open one for themselves, regardless of their credit score (very few banks check it for this type of account) or financial situation.

But, if you’re getting more than one current account, you should confirm that you can keep up with the monthly costs.

For example, some banks require customers to make regular monthly transactions above a certain threshold or a predetermined number of direct debits from the account to keep it.

On top of that, you should make sure you can cover the monthly maintenance charges for all of your accounts.