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?

[mccfluff]

you need a current accont for everyday access then a savings account or an isa in order to give you best return on your savings. lovemoney is a very good site, perhaps have a look there

http://www.lovemoney.com/

[237SJ]

Put it in the one that gives the best interest

[Sqad]

What is the point of having two accounts?

One is used as a deposit account and the other a current account.

[Mamyalynne]

If either are interest earning then obviously choose the higher rated one, but bear in mind that some accounts have penalties for immediate withdrawals so maybe best to keep one as instant access .

[NazNomad]

Use one as a 'piggy bank' and use one as 'everyday spending'.

[dzug2]

You do whatever suits you - there is no right and wrong to it.

[ummmm]

I have 3 accounts...OH has 4.

[spud-u-like]

Choice is yours mollykins on whether you have two accounts or just keep one open.

Why not have two and keep one that you ONLY save into, to accumalate more savings and ask to be put in a higher rate of interest account for the year, as you dont touch the money, and keep one that you can put money into and take out as and when you please ( such as birthday's, for buying gifts etc )

[mollykins]

The champion isa account has several thousand in it and the cashbuilder account has a few hundred, i've just looked and I've still got a third one open, the original one that i had from a baby which my mum transfered most of the money out of, into the isa account for it to get more interest, but to stop me from having to pay tax and stuff she didn't transfer all of it, but we will soon. Am I best off putting most of my money from the cashbuilder into the isa account?

[spud-u-like]

Why dont you make an appouintment with your bank and discuss what you want with their financial specialist, molly. They are there to help you and will give you the best options you require.

This week would probably be a good time as apart from the withdrawals of cash due to the sales, the banks should be reasonably quiet and you may get an appointment very quickly.

[boxtops]

The ISA is a good way to save as when you earn, you don't pay any tax on the interest - so it's well worth keeping that going. Your other account can just have bits and pieces money for shopping and daily expenses. That's what we do.

[mollykins]

Docspock, I come from a big family and I've had lots of people leave me money in their wills. And I made it sound a lot, in total, in the three bank accounts and what I've got for christmas is £5000. . . .

[mccfluff]

more than i;ve bl00dy got :-)

[boxtops]

Hang on to it in a safe account molly, it's more than most of us have got! - you will get tax-free interest added on 5th April at the end of the tax year. Just keep it as a nest egg, you will need it in years to come.

[mollykins]

The cashbuilder account gets interest on the 31st . . .

I was a bit confused about the tax thing I mentioned. We're going to close that account and transfer all the money from it to the isa account, but if you do that, any money in it is taxable, so we transferred most of it (tax free) into the isa account and at present the old savings account is still open so i'll only have to pay tax on a few pound when we close it.

[boxtops]

Sounds fair. You can put (I think ) £3600 p.a. into a cash ISA as new deposits.

[mollykins]

boxtops, is that afetr the initial money with which you set it up as there's already 4k in it . . .

[boxtops]

Yes, you can add a designated amount every year to the existing capital deposit (i.e. the £4k you already have). What's in it already doesn't count, unless you put more in after 5-4-2010 - you can put in a new £3600 every tax year without paying tax on it.

[spud-u-like]

Alternatively you can invest £3600 into my new business francise - spud u like jacket potato's with lots of fillings delivered with a smile on my push bike.

Chilli, baked beans, prawns, curry etc - even turkey and cranberry sauce as topica.l

Order quickly though as it might take a while to get around and keep the oven on if i were you too.