Applying for more than one current account can offer a range of benefits, but is there a limit to the number you can have? This guide focuses on personal current accounts. We have a separate guide on having multiple business accounts.
Key takeaways
There’s no limit on the amount of current accounts you can open.
You credit score could be impacted if you try to open multiple accounts at the same time, so try to space out your applications.
Contrary to what some people believe, you can open as many current accounts as you like with different providers – there is no limit.
In some cases, you can even open several accounts with the same bank, though this will depend on the bank’s criteria. For example, you might be able to open more than one account with the same bank so long as they are different types of current accounts. Or you might be able to open 2 of the same account with the same bank, providing one is a sole account and one is a joint account.
Why it can be a good idea to have more than one current account
There are many reasons why you might want to have more than one current account. We’ve outlined some of them below:
You might want a joint account as well as an individual account. Joint accounts can help you manage household bills and other expenses with a partner or housemate.
You might want both a personal account and a business account to keep your business expenses separate from your own.
Some current accounts pay competitive interest rates, so you might choose to keep some of your savings in a high interest account.
Different accounts can help you to budget better. For example, you might have a current account for your mortgage or rent and other bills and another for everyday spending.
If you regularly send money abroad or travel overseas, you might want an additional current account that holds multiple currencies or an account that offers fee-free transactions abroad.
If you hold a lot of money in your current account – more than the Financial Services Compensation Scheme (FSCS) limit of £85,000 – it is best to spread it across more than one account to guarantee protection. Remember that some banks share the same banking licence, such as HSBC and First Direct, so the £85,000 limit will apply across both brands. (Joint accounts are protected up to £170,000.)
You might want to take advantage of the perks and rewards offered by some current accounts, such as cashback or travel insurance.
More than one account means you’ll always have access to money – even if a bank has a tech failure or your card is frozen due to fraud or loss.
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
If you're looking for a second current account that offers an array of handy app features, this free standard plan from Revolut could be the answer. The app gives you a visual breakdown of your spending, with customisable spending categories. You can analyse your daily, weekly or monthly spending with ease and receive alerts when payments go in and out of your account. Further benefits of the account include airport lounge access and RevPoints which turn card purchases into perks like air miles. You'll also have a set monthly limit for fee-free foreign transactions and cash withdrawals when you're overseas.
Pros
Low overseas fees
Quick sign-up
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked 'Junior' account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
Receive 1% cashback on everyday purchases capped at £15.
This is easy to set up and has no monthly fee. It could be an ideal second account if you're looking for an option that lets you spend overseas fee-free, or if you'd like to earn cashback on your spending. Whenever you spend on your Chase debit card, whether at home or abroad, you'll earn 1% cashback for the first year (up to £15 a month). The account also gives you access to a savings account, plus you can take advantage of the round-ups feature. This automatically rounds up your spending to the nearest £1 and transfers the difference to a savings pot.
One of the biggest benefits of the Kroo current account is that you'll earn interest on your account balance. This could be ideal if you frequently forget to transfer money into a savings account. What's more, the account offers fee-free card spending abroad and it's easy to track your spending, categorise your transactions, and settle up with friends via the app. The account comes with an optional overdraft and FSCS protection. You can open your account by downloading the app from Google Play or the App Store, as long as you're at least 18 years old and a UK resident.
Open the free account from Monzo and you'll be able to take advantage of all the useful features on its app. This includes the automatic categorisation of transactions, so you can see where your money is going, as well as daily, weekly and monthly spending insights to help you set budgets. You can also use Monzo's Pots to stash away cash for certain goals, like a holiday, and the round-ups feature automatically rounds up your spare change from transactions and puts it into your savings pot. The account also offers fee-free spending abroad.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Pros
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Cons
Free ATM withdrawals outside the EEA limited to £200,
£1 fee for depositing cash at PayPoints,
Maximum cash deposit of £1,000 every 6 months
No rewards program
Minimum opening balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
0%
Overseas cash withdrawals
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
Earn £5 cashback a month for six months when making 20 or more debit card payments each month.
If you'd like your second current account to be with a high street bank, the TSB Spend and Save account has a lot to offer. There's no monthly account fee and you can earn £5 cashback each month you make at least 20 debit card payments, for the first 6 months. You can also set money aside in different savings pots to help you save for certain goals, while the Save the Pennies feature rounds up all debit card payments to the nearest £1 and transfers the difference into your savings. An arranged overdraft is also available.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.9% EAR variable.
Pros
Earn cashback as you spend
Competitive Monthly Saver
Save the Pennies feature
Overdraft available
Cons
Cashback on Save and Spend account expires after six months
Interest charged on overdrafts
Minimum opening balance
£0
Minimum operating balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
Europe: 2.99% Elsewhere: 2.99% plus flat fee of £1
Does opening another current account affect your credit score?
Opening a bank account could lower your credit score temporarily, but this is only likely to be a problem if you open several accounts in a short space of time.
Each time you apply for a current account, a credit search will be carried out. If you make a number of applications close together, lenders will see multiple searches on your credit report and this could indicate you’re desperate for credit. As a result, they may be less willing to accept your application. To reduce the risk of this happening, try to space out your applications by around 6 months.
How to open another current account
Opening a second or third current account can be done in the same way as opening your first. You simply choose which account you want to open and fill in the application form. Depending on the bank, you can do this in branch, over the phone or online. You can compare current accounts here.
You’ll usually need to provide proof of ID and proof of address, along with your address history and income details. If you’re opening a second account with the same bank, you may not need to provide all of this information.
Just remember that it’s important to check the eligibility criteria carefully. Many current accounts – particularly those that offer rewards – require a certain amount to be paid in each month or a set number of direct debits to be paid out of the account on a monthly basis. Be sure you can meet these criteria before applying.
How to manage your multiple accounts
If you want to have multiple bank accounts, it’s crucial that you’re organised. You will need to be able to keep track of your finances across the different accounts and understand what’s being paid in or out at what point.
To give you a helping hand, it’s worth setting up standing orders to ensure your money ends up where it should. Once your salary is paid into an account, for example, you might want to set up standing orders that direct money to your different accounts for different purposes.
There are also apps you can use that will aggregate all of your balances onto one screen so you can easily keep track of what’s going where.
Pros and cons of having more than one current account
Pros
You can have different current accounts for different purposes.
You may be able to take advantage of different rewards and perks.
You’ll always have access to funds in the event something goes wrong at one of your banks.
Cons
Multiple current accounts can be harder to manage.
Your credit score could be affected if you open too many accounts at once.
Different account fees can be hard to keep on top of.
Bottom line
Holding multiple current accounts can provide a range of benefits, whether you’re looking to get better at budgeting, take advantage of current account rewards or want a separate account for foreign transactions. However, it’s important to ensure you’ll be able to meet the qualifying criteria for each account, remember to space out your applications and check you’ll be able to keep on top of all transactions.
Frequently asked questions
There is no general limit on the number of current accounts you can open. However, you may only be able to open a set number with one particular bank, so always check first.
There are many reasons why you might want to open a second, third or fourth current account. However, everyone is different and it’s important that you are comfortable with managing several accounts before you proceed. Remember, too, that there is no point opening an account that you don’t actually need.
Joint accounts can help you manage your finances with a partner or housemate. Money held in the account can be used to pay for rent and other household bills, helping to reduce the risk of arguments over who owes what.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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