What type of bank account for rental income?

JohnCleary

Hi folks,
Wondering whether a current or deposit account is the most common type of account to use when accepting rental income on a standing order basis?

Bank charges are not an issue

Many thanks

dotsman

Current account would be the most common. If you want the money to go into a deposit account, you can always set up another standing order from the current account into a deposit account or manually transfer lumps sums as and when you feel like it.

To be honest, it boils down to what you want to do with the account. Is it purely to receive and save up the rental income or do you intend to use this account to pay out any expenses relating to letting the property? It might be easier from an accounting point of view to have all incomings (taxable) and outgoings (tax-deductible) related to the property run from the same account. If so, you'll want a current account. If it's a case that you simply want all this rental income to go into the one place and not touch it in the short to medium term, then a deposit account might be better (note, you may have issues with some savings/deposit accounts accepting multiple standing orders or for certain amounts.

Ultimately, different people have different systems.

JohnCleary

Thanks for the advise, current account it is!