All in one bank accounts

[woodpam]

You know the accounts where you put everything together, e.g mortgage, credit cards, savings? How can I find out if this will improve my finances - I've looked on all the web sites and can't begin to work it out in reality. I'd really like to be able to compare these accounts to the mixture I've got at the moment with proper examples in �s. Has anyone experience of changing over? Is it a lot of hassle? In what circumstances does it make financial sense?

[mikewith]

Haven't tried it myself. Banking is all unclear to y befuddled brain! This though is a site with pretty clearcut advice about online banking - is that what you mean?... http://www.thisismoney.com/advice/banking/

[wildwood]

Those combined accounts make financial sense in that, for instance, while your holiday pay is in there your mortgage balance is temporary (until you've used the holiday pay) reduced. So, instead of getting savings account rates for your holiday pay while it is there, you save mortgage interest rate on that amount - always a lot higher than savings interest. Your credit cards get paid automatically on time so no interest there either. Individual savings on each item may be small, but accumulated over the year it adds up to a tidy sum, especially if your pay goes into the account automatically. Hope this is not to confusing. Not very good at explaining these things. Good luck.

[BenDToy]

I think IF ( http://www.if.com/ ) have a demo on their site. My bank (Clydesdale) actually sent me a cd into which I could key my own data, and I never did!! The basis is that you "pool" all your debts such as mortgage, credit card, loans etc and savings, and calculate interest, daily, on your outstanding balance, at your mortgage rate which is generally lower than all other debts, and higher than any savings rates. Additionally, since most people pay their salary into their current account, as the month goes by the money (or lack of it) reduces as the bills are paid, until the next payday. Any positive balance is usually paid interest at some measly level like 0.1%, and so by using it to reduce your mortgage, albeit temporarily, you effectively earn interest at your mortgage rate. So it really suits anyone who has a mortgage and any other type of account. If you need more info, post another question and good luck.

[FTVS]

Check out moneysavingexpert.com and do really do as he is EXCELLENT. He analyses this very issue with examples. Th upshot seems to be that you will save yourself more money by getting the lowest possible interest rate and overpaying.

[ipek]

In answer to the second half of your question - I changed over to IF in May last year. Savings, bank account, credit cards, loans and mortgage.....mainly because they have excellent rates, I wanted everything together for ease of access and I needed to re-mortgage anyway.
They were so helpful - moved all my DDs etc from my existing current account, arranged the valuation for the mortgage, the loan and credit card were set up in minutes over the phone....they couldn't have done any more and it didn't cost me a penny (the valuation fee was refunded).
It did however, take a few months to get all the DDs transferred and sorted (some recipients did not take instruction from them direct, I had to send in a new application) so I needed to check it every month, but it settled down. At the moment, they have no facility to issue travellers cheques and foreign currency, so I keep my old bank account open for that. It is sooooo easy to move money around between the accounts within IF and also to outside sources (e.g. NatWest) and I even phoned them from Turkey to get some money sent out to a local account.
The main thing I like (appart from the unfailing helpful attitude of their staff) is the fact that you can make transactions over the net OR by phone at any time from anywhere! I am confident that by offsetting my savings against my mortgage will bring down the repayment period considerably. Oh, and you can take a 'payment holiday' every year if you need to (like now to pay for Xmas credit bills..!!).
Well worth it in my opinion.

[eatstatic]

Having a flexible mortgage like this can restrict your ability to borrow from sources other than your mortgage provider. (secured loans)

[woodpam]

Thanks for your help - I hope I'm on my way to financial solvency now by starting one of these accounts! I'm also trying some of the moneysavingexpert.com tips and looking forward to not paying interest on my credit cards ever again.