There are a lot of incorrect ideas surrounding the legality and wisdom of having multiple current accounts – and it is time to put that straight. So, can you have more than one current account? Yes. And should you have more than one current account? That may well be a yes, too. But it’s up to you.
Here, we’re taking a look at why it’s possible and sometimes useful to have more than one. But knowing what your entitlements are in terms of bank accounts is a good place to start. Let’s take a look.
How Many Current Accounts Can You Have?
Can I have more than one current account, you ask? Is it legal to have multiple bank accounts? The answer to these questions is simple – although most banks are reluctant to be honest with you about it.
To put it as clearly as possible, you can have current accounts with as many financial institutions as you would like. The trouble is that banks tend to want you to bank with them and with them only.
So, although rumours to the contrary are everywhere, you are perfectly entitled to have more than one current account – with the same bank (depending on their internal policies), or with different banks.
Should You Have Multiple Current Accounts?
There is, however, a difference between whether you can and whether you should do something. In this situation, though, there are some reasons why you might be open to the idea of having multiple bank accounts – though it’s entirely your choice. Here are some of those reasons...
Different Accounts Can Help Budgeting
Having a number of different accounts can help you to take better control of your money. If all of your money is in the same place, keeping track of all incomings and outgoings can be tricky.
Creating specific accounts for specific purposes makes it easier to manage your finances, to allocate funds to specific expenses, and to visualise budgets and expenditures. With a Revolut account, you get access to our budget planner – a tool which is designed to help you manage your money effectively.
You Might Want a Shared Account
If you live with other people or you want to make finances easier with a long-term partner, a shared account might be something that’s beneficial. If you could not have more than one bank account, this would be impossible. As we just mentioned, different accounts can make money management that little bit easier – particularly if more than one person has access to it.
Take Advantage of Offers, Perks, and Better Rates
Different banks offer different rates, special bonuses, and features designed to make the life of their customers easier – particularly since the start of open banking. And whilst only 3% of personal account customers switch accounts in a given year, according to government figures, you can get a better deal by looking elsewhere.
Do Too Many Bank Accounts Hurt Your Credit?
Having more than one current account will have no impact on your credit score in and of itself. As we said above, having multiple accounts can be useful for your financial management.
Things that can affect your credit score are some of the following:
- Being at your credit limit, regularly maxing out your credit card, or always being in overdraft
- Missing debt repayments will negatively affect your credit score – as well as filing for bankruptcy
- Frequently opening lots of new credit accounts
While it doesn’t hurt your credit to have multiple bank accounts, if you max out the overdraft limit on each of them and incur interest payments from multiple overdrafts at once, that will do some damage.
Conclusion: Can You Have More than One Current Account?
So, can you have two current accounts? The short answer, simply, is yes – you can have as many as you like. In fact, there are good reasons why you should be open to using more than one current account.
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