Two bank accounts

[mollykins]

I finaly got the bank account problem sorted, and I now have access to both of my accounts. But whats the point in having two and when i get money which do I put it in? For example I have christmas money I want to save up, but which account do i put it into?

The accoutn i've had since a baby has money left to me in wills and brithday and christmas money in it up until a few years ago, the newer one has money from more recent birthdays and christmasses.

What should I do? In terms of where to put my money in future, or now they both belong to me properly, should I put all of my money into one account?

[mollykins]

SB you weren't listening. In the summer or 2012 i'll go do some marine biology stuff, before I go to uni. The uni's are slightly more likely to take me on as i have experience, and when I leave uni, I won't jsut have the qualification but a bit of experience aswell.

[mollykins]

There's gap year companies that do trips that last from a couple of weeks to a whole year. And some offer trips where you work aswell.

[squarebear]

I fear you live in a dream world cut off from reality.

[mollykins]

i didn't say that it'll guarantee me a place at uni or a job but it should help a little bit by giving me experience and in such a competitive world full of uni graduates with no real world experience that should help.

[squarebear]

I would rather employ the person most suitable for the job and wouldn't really care if they had been horseriding around the Pampas or whatever.

[squarebear]

What job do you eventually wish to do?

[mollykins]

Marine biology. But if you have two people with exactly the same grades and credentials except one was a scuba diving qualified boat driver with relevant past experience and the other non, which are you going to go for?

[dotty.]

was is a 'scuba diving qualified boat driver ' molly? if your driving the boat you can't dive as well, and noone uses the word 'scuba' when they have done their open water.

[squarebear]

While I wish you all the best, from reading your other posts, I strongly believe you have set your sights too high.

[mollykins]

I'm a padi qualified open water scuba diver plus I have rya boating qualifications.

'if it's easy to get, then it's not worth having' i'm an ambitious person.

[dotty.]

have you done your rescue diver yet? you need to knwo about ribs not yachts anyway

[mollykins]

I've got sailing, planing and displacement qualifications with rya, displacement being the area i'm most qualified in.

[mollykins]

And no I ahven't done rescue diver as i can't do the advanced yet as i can't go deep enough yet.

[dotty.]

handy for water skiing I suppose

[KARL]

Going slightly outside the direct thrust of your question (why more than one account) and viewing the larger picture, it is actually only how the banks choose to operate that makes not only having two accounts sensible but moreover constantly opening new ones. Banks, like insurance companies, rely on their customers not watching things meticulously and the terms of accounts (interest, charges, uses, etc.) tend to deteriorate over time just like insurance renewal premiums increase inordinately from year to year. On the other hand, banks offer new accounts with the best conditions (which then drop) and insurance companies offer new customers cheap policies. This has been going on for perhaps 40 years or more and the banks and insurance companies think it is clever because it actually works and makes them money (due to the inertia in the population). My bank manager of quite a few years ago (he and I became personal friends) told me quite openly that if it were up to him (it wasn't, he was of course just an employee) he would quite literally have only one account: A current, savings and lending account rolled into one. When you are in credit you get interest paid and if in debit you get charged interest, all according to a published table. If you want to borrow you agree that with the bank and pay the same relevant interest, including providing a security when taking out a loan for a house or anything else involving a large amount. I have often wondered what would happen if a bank decided to take up such a policy/operation - would it be popular or not ? I certainly know I would take my business there unless there was a compelling reason not to such as really poor interest rates differentials - they would however probably take aim of the general market anyway. One thing seems likely, they would be more transparent and perhaps also more stable than the familiar ones.

[mollykins]

Thanks karl, and btw all three of these accounts are with nationwide, if you have two accounts (which I soon will) is it best to have them with the same or different bank? If you transfer money between the same bank it's free isn't it, but between two different banks may cost you . . .

[KARL]

The way things are, if you want to maximise your returns and/or minimise your outlays on charges, etc., then it is advisable to literally keep an eye on all UK banks and their accounts on offer (UK residents are effectively banned from having foreign accounts - by the taxman). Transferring money between banks is not generally charged for, although some accounts may include some form of fee in the terms. Withdrawing money early (before "maturity") from a term deposit account usually attracts some form of negative (a fee, loss of interest or whatever).

[twix123]

Molly, whatever accounts you have, other than the ISA which is paid tax free, ensure that you lodge a form R85 with the bank/building society, while you're still a student, which will eable you to receive your interest tax free, which is a lot easier than trying to reclaim it from HMRC at a later date. At present you are allowed to earn £6,475 before paying tax and I'm sure that your planned part time job won't be paying you that much (when it comes about!).

[mollykins]

I think me and mum filled that form in, well something about not having to pay tax on one of the accounts (probably the new isa one).

[twix123]

The ISA will be tax free automatically, make sure that the interest you receive on the other account(s) is also paid free of tax, if not complete another R85. Some building societies expire them on the beneficiaries 16th or 17th birthdays, therefore you need to check.