Banking - logical vs physical accounting

[mrdanbartlett]

Hi all,

A bit random and not sure if I've worded this right..... I have alot of different bank accounts (*same provider - Santander) becuase I organise my money into different pots, such as my own day to day account, a joint account for the household bills, holiday savings, buffer account for more expensive non day to day stuff, emergency savings account, and some trust accounts for the kids.

I like the way I can seperate my money so its in these logical pots with money belonging to each, the trouble is what I really want is to bundle most of it into my high interest easy access account in order to earn decent interest, I sort of do it with some of the funds but is there either an app or provider that lets you create virtual pots out of 1 account?

I.e if I moved my kids money (they are young so don't even know about it) into my high interest savings account then how can I ensure they keep their portion of the interest.

Anyone else every thought like this? Its easy if each amount if a rounded up number but is complex when its not. I wish banks would offer such a virtualised method for diving up money.

Appreciate any comments.

[deggles]

Chase let you do this with their savings accounts. You can have up to ten accounts each earning their own interest at the main savings rate. It's a step up from virtual 'pots' that Monzo and such offer, they are actually separate accounts but all easily accessible in one place.

Downside is the interest rate isn't the highest any more, but still decent.

[mrdanbartlett]

Thanks, appreciate the reply. Will look into that.

Seems good to take advantange of this rare period of higher interest rates

[The Leaper]

Personally, I think that this is not a rare period of high interest rates. In recent years we have experienced a rare period of exceptionally low interest rates

[mrdanbartlett]

The Leaper said:

Personally, I think that this is not a rare period of high interest rates. In recent years we have experienced a rare period of exceptionally low interest rates

True, it has been low since 2008 though so 15+ years now, but agree in the wider timeline its not normal. Depends on your age I guess as to what your experiene has been.

[JuanCarlosFandango]

Chase as deggles mentioned.

Another one worth mentioning is Hargreaves Landsdowne Active Saver. This gives you access to a whole range of savings accounts with different banks in one place. You can slightly beat Chase for an easy access savings account but you can also open fixed term bonds with whoever is offering the best rate at the time. I've found this useful when I know I've got a big expense such as Christmas or summer holidays. You can put money to one side to mature when in time and earn decent interest on it.

[Jon39]

mrdanbartlett said:

Hi all,

A bit random and not sure if I've worded this right..... I have alot of different bank accounts (*same provider - Santander) becuase I organise my money into different pots, such as my own day to day account, a joint account for the household bills, holiday savings, buffer account for more expensive non day to day stuff, emergency savings account, and some trust accounts for the kids. ...

I have always worked on a similar basis, but never with just one provider.
Three different banks, some with several accounts, have been used to keep the different pots completely separate and ensure continual access, just in case some technical hitch should occur, which has happened. As an example, one bank is soley used for direct debits, with the account being topped up at intervals.

For children and now grandchildren savings, there is such a long savings period involved, so equities have always been the answer to that. Cash, or cash equivalents are eroded dreadfully by inflation over say a 20 year period.