How do I bank better?

J

jamestkirk

Registered User
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52
Hi All,

First time to post here and I hope I have the right section. I am in an overdraft to the tune of nearly 3000 a month. Its been building up for years and right now both myself and my wife are at the very limit. I am in position to pay it of, thank God, with a loan from my mother.

Both myself and my wife have been thinking about combining our bank accounts so that our money is pooled together and leaving one of our accounts active to direct debit a sum money each month for bills etc.

We have three different bank accounts, one each, a joint account but are paying fees on these. We are trying to be frugal and watch exactly what we spend and pay out each month, with three kids and a hectic lifestyle it can be difficult. I guess what I am trying to ask is there a better way for us to do banking by setting up together with an overdraft (for that peace of mind) and make our money go a little further?
  1. Would it be crazy to try and move banks?
  2. Is it wise to be setting a bank account together?
  3. Will banks welcome our business and give us an overdraft?
Many thanks folks, any advice is appreciated.
 
Myself and my wife have joint accounts and it works well. But it may not be for everyone. I don't like overdrafts but I use my credit card for most things and clear it every month, so it's like an interest free overdraft. There are many threads on budgeting on AAM already, here and here for example.
 
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Hello,

We did something kind of similar a few years ago. Here is a summary:

  • We opened 3 current accounts with PTSB (each one qualifies for free banking, with monthly lodgements above the threshold) - one for me, one for her and a joint account.
  • We also opened a "demand" deposit account with the same bank.
  • We got ATM/Debit cards on the two individual accounts, but no card for the joint account.
  • The joint account has all of our direct debits and standing orders taken from it. We also opted for a cheque book for this account, but have only written about 1 cheque per year.
  • There is no borrowing facility on any of the three current accounts.

  • We considered our combined net salaries and were satisfied that we could afford to pay all of our bills and living costs, with a little left over each month (thankfully).
  • We then estimated what we each needed per month and decided that was all that would be left in each of our personal current accounts. A standing order from each of our accounts goes out following each payday, moving all remaining funds into the joint account.
  • We set all regular payments up on a standing order or direct debit and kept a record of all of these regular payments. We leave a small surplus above the total of these cost and thereafer, a standing order moves the remaining funds to the deposit account. I monitor this joint account and reconcile it against a spreadsheet each month to ensure everything gets paid and that none of the amounts need to be adjusted.

  • We had a few credit card accounts, but decided to close most of them and only kept one.
  • We got a card in each of our names on the one remaining credit card account and use this for things like grocery shopping, the odd dinner out and (real) emergencies.
  • The credit card bill gets paid in full and on time each month (from the demand deposit account)

  • Over time the amount in our deposit account has grown, so every 6-12 months we do something with this (be it a payment to reduce the mortgage, put it towards a holiday or whatever we decide).

The results:
  • We pay absolutely no bank fees (just the stamp duty on the ATM cards. etc.)
  • We pay no loan interest on overdrafts or credit cards (again we obviously pay the stamp duty on the credit card but it's only one fee, rather than several)
  • All bills get paid on time and without difficulty (so no nasty reminders, no late penalties or charges for unpaid direct debits or anything else)
  • We know exactly what we are paying the various service providers (so can then easily compare prices for the likes of electricity, gas, telecoms etc.) and move when appropriate.
  • We now have a small regular savings account with some excess cash each year.

It took a little bit of work and discipline, but now it all runs like clockwork with no surprises, no bank fees, minimal government stamp duties and very little effort.

In my view, it was a great days work :)
 
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Michaelm and MrEarl, thanks a million, lots to read here and very relevant to what I want to achieve.

Mr.Earl, your setup is exactly what I want thanks.
 
Sadly PTSB changed it's Current Account product. I would go with EBS Money Manager - totally FREE - no cheque book or overdraft facility. Debit card is non contactless.
 
I think a lot of the new banks, N26, PaywithFusion etc. offer accounts that can do a lot of this, and monitor your outgoings. Worth a look
 
If you are just about to clear an overdraft with a loan, I would strongly recommend not to open another one. Not only will you be charged for the privilege, you're going to be tempted to use it, and return to this same situation in two years time.

Do answer your questions
1. Nope, moving banks should be your first move
2. Absolutely, can't believe you're married and don't have this!
3. Banks have no criteria for opening current accounts, DO NOT GET ANOTHER OVERDRAFT!!

As suggested, EBS is completely free. I'd open 3 accounts, one for each of ye and one for shared. Myself and GF are with them like this. Use the joint account to pay all bills and household expenses . You should be able to estimate that reasonable accurately. Then keep your own for your own private use, fun money etc.

Write a spending diary of everything you spend for a few months, to see where your money goes. You'll be amazed.
 
Chef Harold said:
I think a lot of the new banks, N26, PaywithFusion etc. offer accounts that can do a lot of this, and monitor your outgoings. Worth a look
Click to expand...
I posted recently on N26 not many replies. Are people wary of moving from Irish banks? I have just opened a mobile account but now find my Android OS is out of date. So will have to update to 4.4 to get the app up and running. Anyone using mobile banking (non Irish).
 
SDMXTWO said:
I posted recently on N26 not many replies. Are people wary of moving from Irish banks? I have just opened a mobile account but now find my Android OS is out of date. So will have to update to 4.4 to get the app up and running. Anyone using mobile banking (non Irish).
Click to expand...

I am using N26 and am quite happy with it. The app is great and given the way you can set limits make it very secure way of using cards. Mind, if you are using cash a lot i wouldn't bother as taking cash drives the account fees up. Transfers are quick and easy as well. Of course, given it is an German IBAN you'll still need an Irish bank account for a few things, and they don't do credit cards yet.
 
newirishman said:
I am using N26 and am quite happy with it. The app is great and given the way you can set limits make it very secure way of using cards. Mind, if you are using cash a lot i wouldn't bother as taking cash drives the account fees up. Transfers are quick and easy as well. Of course, given it is an German IBAN you'll still need an Irish bank account for a few things, and they don't do credit cards yet.
Click to expand...
What are the few things I need an Irish bank for? Bet one of them is TV lic / LPT?
 
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