If you prefer this option, you will need to open up separate accounts for each area of spending and you will need to set up regular transactions between each account. You can either open additional accounts with your current bankers or with other banks. You can set up transfers between inter-connected accounts, these are accounts held with the same bank.
You can set up standing orders that automatically transfer money from your main account into these additional accounts one or two days after you’ve been paid.
Set up a Direct Debit for each of your bills.
You will need a sort code, an account number, any reference you want or need to use, the date you want the payment to start, the frequency (weekly/monthly etc) and the duration (until further notice or an expiry date)
Be careful to consider any clearing cycles when you set up regular payments, i.e. if you transfer money into a building society, will it take longer to reach the account than if to a bank account?
To set these payments up, you can speak to your bank or if you have online and/or mobile banking, you might be able to set payments up yourself. Make sure you choose accounts that are free to use and do not have any restrictive spending limits.
You can try a comparison site to look for bank accounts but might need to check further details to make sure that the account fully suits your needs. You can try the following comparison sites:
It can often be quicker and simple to open up additional accounts with your same bankers.
Your money is usually securer deposited in a bank than kept at home.
Once your standing orders have been paid, you can spend from your main account without risking not having enough left for important monthly bills.
It is a great way of spreading the cost of those larger once-a-year items like holidays, Christmas and car tax and MOT.
You can still see all of your accounts in one place if you sign up for open banking.
If you have a lot of jam-jar pots, you could end up with a lot of accounts to manage meaning you are creating a lot of administration for yourself.
You will need to manage all your accounts carefully to stay in credit and not incur bank fees and changes.
Opening multiple accounts might affect your credit score and the way lenders credit score future applications.