Opening a second bank account in the UK

If the bank account you have isn’t enough for your current needs, you might want to consider opening another one. You could opt for a completely new bank or stay loyal to the same provider.

In this guide, we’ll explain everything about opening a second bank account in the UK. That includes all the necessary steps and whether it’s a good idea to go through with it.

And if you’re doing a lot of travelling, then consider checking out the Wise account from the money services provider Wise. Even though this is not a bank account, it offers some similar features. It allows you to manage your money in GBP and dozens of other currencies, with mid-market exchange rates and low, transparent fees*. What’s more, you can also get a Wise card for a one-time payment of £7 to spend abroad like a local, saving money in the process.

Learn more about the Wise account 💰

How many bank accounts can you have in the UK?¹

So, how many bank accounts can you have in total? The good news is that UK banks don’t limit the number of current accounts you can open. You can even have multiple with the same bank.

Still, make sure to ask any bank you’re considering if they have some specific rules when it comes to this. There will likely be requirements for some types of accounts, such as a minimum salary amount.

Is it a good idea to open a second bank account?²

It’s not uncommon to have multiple bank accounts, especially since many different types of them exist. Although it might be easier to take care of only one, opening a second bank account could come with many perks and help you manage your finances better.

If you feel like it would be too much of a hassle to keep track of multiple accounts, you could just stick to the one you have. Also, keep in mind that many accounts have monthly costs which could accumulate to a significant account.

However, since there are more pros than cons, let’s discuss some reasons for opening a second bank account.

Advantages of having multiple bank accounts²

One of the biggest benefits of opening multiple accounts is being able to have personal and joint accounts. Joint accounts are a convenient way to split your finances with your partner or to introduce your child to the world of money management.

Also, it’s a good idea to consider different accounts for everyday expenses and for paying bills. This could be a helpful way to improve your budgeting skills and to analyze your spending habits.

When it comes to savings accounts, it’s good to have them since they earn interest. Opening a second bank account for savings only could help you reach some financial goals you’re working towards.

Does opening a second bank account affect your credit?

Let’s answer a very important question - does opening a second bank account affect your credit at all?

In short, not necessarily. If this is only your second account, this won’t cause any changes to your credit score. What makes a difference is having multiple bank accounts and often applying for credit can make you look suspicious.³

Even though the act of opening an account won’t affect your credit directly, overdrawing certainly will. Also, not meeting overdraft limits in time can leave a mark on your credit score.

Finally, if you’re opening a second bank account to apply for a credit card, a mortgage or a loan, you’ll go through what’s known as a hard check. This is essentially a detailed look into your financial history. Every hard check you go through will slightly lower your credit score for a certain period, since it suggests you’re seeking additional debt.⁴

How to open a second bank account in the UK?⁵

Opening a second bank account is the same as opening any bank account in the UK. The process is similar for most banks and it starts with finding the right account for you. Once you do that, it’s time to move on to the paperwork.

Since some account types require specific documents, make sure you check with your bank what it is you need to bring. However, here’s an example of everything you need in order to open a regular current account with Barclays:

First, you need to provide some proof of identity. Here are some documents that could be used for this:

• UK photocard driving licence (full or provisional) or UK paper driving licence (full only)
• Valid passport
• UK biometric residence permit (BRP)
• Application registration card (ARC)
• UK government benefit entitlement letter from last 12 months (excluding Universal Credit)
• Disabled person’s Blue Badge with your photo
• UK Armed Forces ID card

Then, you’ll need to prove that you live in the UK and have a UK address. You’ll do so by providing one of the following documents, but make sure you don’t bring the same document as proof of identity and proof of address:

• UK photocard driving licence (full or provisional)
• Gas, electricity, satellite/cable TV or landline phone bill
• Royal Mail post redirection letter
• Council Tax bill for the current tax year
• Local authority or housing association tenancy agreement

Wise – An international alternative to a bank account

If you’re looking to open another account and love travelling then consider checking out the Wise account. It’s not a bank account but offers many similar features.

With the Wise account you can manage your money in 40+ currencies and send international payments worldwide to 160+ countries for low fees* and mid-market exchange rates. All transfers are secure and trackable, and when you’re sending large amounts you’ll also get dedicated support.

There’s even a Wise card you can get for a one-time cost of £7 for spending in 150+ countries. This clever card automatically converts your pounds to the local currency at a great rate, only adding a tiny, transparent conversion fee* – or it’s free if you already have the currency in your Wise account.

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Sources used:

Sources last checked on date: 27-Aug-2024