So, despite being fairly easy to predict, Tesco Bank have left the current account space. The BBC personal finance commentator noted the below…
‘That was rare for Tesco Bank customers (being a primary account) , so it is scrapping these accounts. Digital challenger banks are trying hard to clear the same hurdle, in an attempt to finally break the stranglehold of the big High Street banking brands.’
Is one then contributing to said stranglehold by, for instance, having their salary paid into a High St Bank? Even if for instance, they do all of their spend with a fintech?
The simple answer is probably “yes”. I moved everything to Starling from Nationwide, so I don’t have any money paid into any other account. The only thing I’ve kept open is my FlexPlus for the insurance benefits. I don’t use it as a current account though.
I know everyone has their own ways of managing their money, but I don’t see the need for multiple accounts for salary, spends, bills, etc.
I however discount one joint account (this is the High st’er) , as contrary to what you said, I do think there is a purpose in a secondary account for shared bills - as the alternative is one person having all the visibility…the idea of spending out of that account on top of this gives me a headache! The card does get used now and again, but only in place of a direct debit. I am paid in there at the moment though as its easier to meet pay in criteria, which also doesn’t make a lot of sense for keeping things seperate
Why the other 3? All fintechs, 2 are E money so annoyingly I can’t use them for things like Freetrade or Wealthify debits/credits. I don’t use Dozens like a current account, so that would be a great one to use for the above purpose (esp given the wealth link) but oh well. I currently use/have kept Monzo for that, and not a lot else.
I spend from Revolut, as I think they’ve got the best app experience.
At some point I need to move my salary and or consolidate
You’re right - I do actually have a joint account with my wife (with Starling). I meant more along the lines of an individual using multiple accounts for different things. It’s not right or wrong, just not for me. If having separate accounts helps people to budget or track their money, then fair play