How to get bank accounts for budgeting?

[trickydickie]

Looking for advice on how people do the budgeting envelope thing?

I had thought I would open a few bank accounts and just transfer the money I need for each individual area into them.

So examples of accounts I would like

Account a) money to pay for all kids clubs activities and birthdays/parties. This account would need a debit card facility so as I could pay online for certain activities.

Account b) Insurance money for house and car, road tax mot money. Again would like debit card facitility.

Account c)Savings account for Christmas (which I have already and may also use it for any holiday, although can't afford one for a couple of years). Obviously this card doesn't have debit card facility but I just transfer money from savings account into my current account to buy pressies.

I don't want to pay a fee for any of these accounts. Would I be better just opening savings accounts? Though that wouldn't give me the debit card facility I want.

I don't really want seperate envelopes in the house with money for different things in it. Worry about broken into and also Dh is rubbish with money and would use the envelopes money to buy things he deemed were necessities!

Any advice greatly welcome. Thanks.

PS. my credit rating is quite good, I am just waiting for my name to be added to the electoral register, so don't think I would have problems opening new bank accounts.

Some savings accounts give you a cashcard to use at a cashpoint. Lloyds is one provider of that.

Many savings accounts will let you move money to another account quite quickly these days, so if you plan in advance you can move the money to your bank account and then use your debit card.

Your own bank may do a linked savings account, which can move money same day to your current account.

Bank accounts usually have minimum monthly payment in. Having multiple accounts can be done but you need to have a good system in place for moving the minimum payment amounts around to keep to the account terms.

Personally I would use instant access savings accounts. You won't get much interest.

I would just have a main current account with linked savings accounts (with the same bank) so that you can see them all online at the same time and can transfer between them as and when you need to. You can get mobile phone apps which will also help keep track and let you transfer money to and from your savings account instantly within seconds.

What bank are you with? It may be as simple as opening new savings accounts linked to your existing current account. Most banks allow you to open the savings accounts online too.

Thanks. I am with Halifax. I have a current account and savings account with them. I might look into opening another savings account.

Think the problem is that most current accounts now need a minimum of £500 deposited in them every month to get your banking for free.

the do online savers accounts with instant access so you could open one quickly and then move the money about as and when you need it

I have a Santander 123 account-wages go in, direct debits and standing orders go out, including SO to 2 other savings accounts-one for savings, one for car stuff/emergencies, all Santander.
its £2 a month, but I get cashback paid in for energy,phone and council tax DDs, I make around £5 a month after the £2 fee taken off.

then I have a Santander 123 credit card, no fee for first year, which I only use for petrol(but you can use it for anything!) pay off in full monthly and make around £9 cashback.

its all on online banking so I can swap money around, don't like having too many cards, so I use current acc debit card and replace to the appropriate account.

I had a similar dilemma recently but I've found a fab account that once its all set up you can then set up your bills so that the account then puts them aside (so that you cannot spend the money) and then only leaves you an available balance to spend on everything else. I don't think there's a limit on the amount of envelopes you can set up but it is definitely working for us, makes monthly budgeting a lot less stressful. www.ffrees.co.uk/

Thanks everyone. Moonsl- that account looks fab, appears to be exactly what I need. I will have a good look at it tonight once I have time.

Thanks everyone.

set up with Lloyds or TSB, both paying 3% max on current accounts. You don't need direct debits either.

the minimum payment in does not have to be a salary, the same money can go round all the accounts via standing order.

I have a current account where all my money is paid into and a second current account with a different provider where my direct debits go out of. I move money from the first account to the second account during the month so that all DD are covered when they come out on the 1st. Both accounts have debit cards but I don't use the one from the second account.

I also have a savings account where I add money every month for the expenditures that only come up once or twice a year like MOT, Christmas or a holiday.

I have been doing this a couple of months and is working really well at the moment.