Is too many bank accounts pointless?

[Treefrog2108]

Hello.
I have been made redundant recently and have recieved a small lump sum. I wish to put 25 thousand away for maybe a year. i was looking at the best buys sections for lump sums and i was considering investec although i would prefer to deal with a local branch instead of mailing all my details off.

anyway i already have accounts in three seperate banks already (about 18 000 in each ) and was wondering is this foolish. My main bank is aib and was wondering would it be easier to just add the extra 25 000 there, i already have a seven day notice and a year fixed acount with amounts just below their cut off point for the lower interest rate. So is there some law that you cant have 5 bank accounts or is there no need for this?.

forgive the longwinded explanation. as I am unemployed i need to maximise my interest being made as it all counts.

thank you.

 

[Chris]

You can have a hundred accounts if you so wish, as long as you do not use them for illegal activities like money laundering. I think spreading the money over several banks is a good idea, even if the government guarantee is unlimited. The unlimited guarantee will have to end some time, and then you will want to keep the amount in each institution below the guaranteed amount.
You should look at moving the money to wherever the highest amount of interest is paid, and revist this on a monthly basis for demand accounts, and upon maturaity for term accounts.

 

[Treefrog2108]

ok. sounds good, thank you for the reply.

 

[Lightning]

anyway i already have accounts in three seperate banks already (about 18 000 in each ) and was wondering is this foolish. My main bank is aib and was wondering would it be easier to just add the extra 25 000 there.

Don't. AIB and BOI take advantage of situations like this where there is consumer inertia. You will earn a much greater return for your money by shopping around and placing your money elsewhere.

As Chris said, you can have as many bank accounts as you wish.

 

[Starbuck]

Not pointless - but a pain in the bum. Especially at Tax Return time.

 

[Boyd]

Not pointless - but a pain in the bum. Especially at Tax Return time.

??

What tax returns, if PAYE worker you dont need to do one or am I missing something here?

 

[pudds]

??

What tax returns, if PAYE worker you dont need to do one or am I missing something here?

Also if tax is stopped at source (DIRT) surely there is no need.

 

[Starbuck]

If you have other income you do.
I have rental income.