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 Having 2 basic bank accounts
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CIF
Advanced Contributor

200 Posts

Posted - 06 April 2021 :  20:22:19  Show Profile  Reply with Quote
Evening All,

I have just sent off the paperwork to enter into a Trust Deed today. Having been here before, I am hell bent on making sure it doesn't happen a third time. Many thanks to Kevin who has been helping out with it as there is one aspect that he has had to do some additional research on.

Anyway, onto the main topic. I was hoping to set up a second bank account to put some of the agreed monthly expenditure on things like property maintenance into so I have it separate and out of sight/mind until needed. I am currently with Coop bank on a normal account. I was hoping to stay with them to avoid hassle and hoped that they would agree to just downgrade me to a Cashminder (their basic account). I talked to them today about this and unfortunately they have said no, the account would need to close and I would need to apply to open a fresh Cashminder account. The appeal of staying with them is now lost. They only have one branch in Glasgow and I figured I would be better off elsewhere. I have opened a TSB Cash account without any issue.

The only downside with that is that it says if I open another bank account in the UK, then they may close the Cash account. Bank of Scotland have a similar clause in their terms as do Coop so it seems to be an industry thing. As an alternative, I looked at prepaid debit/credit cards but the best of these are also offering direct debits and in some cases are referring to themselves as current accounts. So that appears to rule that out...

I am just wondering if anyone has successfully managed to run two bank accounts and/or has encountered difficulty with this.

tigh
Regular Contributor

15 Posts

Posted - 07 April 2021 :  00:15:10  Show Profile  Reply with Quote
Hi Cif,
When we entered our Sequestration, we had 2 current accounts (one with Santander, and one with M & S) and we also had a savings account with Santander (very low balance). Santander froze both our Current Account & Savings account about 2 weeks after our Sequestration was accepted, so we ended up having to close the account, but we were allowed to open a basic account with them, and they unfroze the savings account once we'd been in contact with them with a letter from our Trustee. Our Sequestration finalised in November 2020, but we're still making contributions to our Trustee and will do so for 4 years.
M & S are closing their current accounts, so we're going to have to look for another bank we can use, or put everything into the Santander account, but that account does not allow recurring payments, so now Sequestration is finalised, we might try to upgrade to their ordinary current account, but we've had no issues with using 2 bank accounts (Partners wages are paid into one account & benefit payments are paid into the other, with D/D split between both accounts). We use the savings account to lay aside monthly expenditure, so that it's in a separate account (out of sight).


I hope this helps
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Dazzla359
Contributor

10 Posts

Posted - 07 April 2021 :  07:48:10  Show Profile  Reply with Quote
Hi,

Google Plum and thank me later . It basically links to ur bank account and allows you to set up monthly savings to transferred across and itís really simple and quick to set up on ur phone.

Edited by - Dazzla359 on 07 April 2021 07:49:34
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Paul McDougall
Trust Deed Expert



105 Posts

Posted - 07 April 2021 :  09:10:18  Show Profile  Reply with Quote
Morning

There is nothing preventing you from running two basic accounts. There are a whole list of new internet banks that you should consider as well as Credit Union accounts.

P

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
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CIF
Advanced Contributor

200 Posts

Posted - 07 April 2021 :  17:13:16  Show Profile  Reply with Quote
quote:
[i]Originally posted by Paul McDougall[/i]
[br]Morning

There is nothing preventing you from running two basic accounts. There are a whole list of new internet banks that you should consider as well as Credit Union accounts.

P



Hi Paul,

Unfortunately the terms and conditions of at least 3 of the banks suggests otherwise. It seems to be something to do with the PARS Regulations from 2015 when the top banks were forced to offer basic accounts to folk in financial difficulty. I had a look at the PARS regulations myself and they confirm it's legal for them to close your basic account if you open another. Unfortunately this also seems to apply if you open a pre pay card. Frustrating.

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CIF
Advanced Contributor

200 Posts

Posted - 07 April 2021 :  17:14:33  Show Profile  Reply with Quote
quote:
[i]Originally posted by Dazzla359[/i]
[br]Hi,

Google Plum and thank me later . It basically links to ur bank account and allows you to set up monthly savings to transferred across and itís really simple and quick to set up on ur phone.



Thanks Dazzla, I will take a wee look at that.
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Kevin Mapstone
Trust Deed Expert



3970 Posts

Posted - 08 April 2021 :  14:48:16  Show Profile  Reply with Quote
Hi CIF. That's interesting, and not something I was aware of. I suspect that in reality it won't be a problem, however it would be good to hear if any others have had these issues.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed
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CIF
Advanced Contributor

200 Posts

Posted - 08 April 2021 :  18:48:10  Show Profile  Reply with Quote
I can't help wondering how they would find out if you had a second one? Obviously if you were directly transferring money between them it would flag it but not if you were manually doing it. Not a biggie if it's not workable, was just trying to save having the cash lying around the house.
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TDA (Debt Adviser)
Trust Deed Expert



13705 Posts

Posted - 09 April 2021 :  09:39:31  Show Profile  Reply with Quote
I can't remember anyone writing about this being an issue in reality CIF.

There's lots of good reasons why people might want to have more than one account. For example, business versus personal, a bills account, an account to set aside some cash for irregular spending like car servicing or repairs etc.

Like you say, if there's no credit provided by the bank it's hard to think how they'd know that you have a second account.

My guess is that this restriction is put in the terms and conditions because these accounts aren't very profitable for the banks to operate, and presumably even less so if people have more than one of them.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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