6 Accounts You NEED For Your Money
Issue #24 of the Chider Peters Dispatch (CPD)
Hey friend, one of the biggest mistakes I see people make is trying to manage their entire finances with just one or two accounts. It feels simple at first, but it makes it far too easy to overspend, lose track of your goals, or dip into money meant for other priorities.
Separating your finances is one of the core foundations for managing and growing your money with confidence. When you give every pound a purpose, you stay in control and build financial stability for the long term.
Here are my top 6 recommended accounts to structure your money for growth and peace of mind:
✅ 1. Current Account (Salary + Spending)
This is the hub of your financial life, your salary lands here, your bills go out from here, and your day-to-day spending happens here.
How to make it work:
Set up all your direct debits (rent, subscriptions, utilities) from this account.
Leave only your planned spending money in it, so you don’t overspend.
Automate transfers to your other accounts right after payday, so you pay yourself first.
✅ 2. Pension Account
Your pension is a critical foundation for long-term security. It’s your retirement money; the earlier you build it, the more time it has to grow.
Options include:
A workplace pension (most employers offer one, and some will even match your contributions; don’t leave that money on the table! 👀)
A personal pension (for self-employed or side hustlers)
If you’re under 40, you can check if you’re eligible for a Lifetime ISA, which can also be used towards retirement.
✅ 3. ISA (Individual Savings Account)
An ISA helps you grow your money tax-free in the UK. There are several types, each with a different purpose:
Cash ISA: Like a regular savings account, but interest is tax-free. Best for short-term savings, just ensure you get one with a high interest rate. Here’s a 4.92% Cash ISA which I recommend
Stocks & Shares ISA: Invest in funds, stocks, bonds, and your earnings stay tax-free. Great for longer-term investing (5+ years).
Lifetime ISA (LISA): If you’re 18–39, you can save up to £4,000/year towards your first home or retirement, plus a 25% government bonus, but there are limitations; watch my detailed video on Lifetime ISAs.
Innovative Finance ISA: Invest in peer-to-peer loans or similar, tax-free, higher risk.
Tip: Know your annual ISA allowance (currently £20,000 as of 2025) and use it strategically.
✅ 4. High-Yield Savings Account (Emergency Fund)
Life happens: job loss, car repair, sudden illness. That’s why you need an emergency fund, ideally 3–6 months of living expenses, parked in a separate high-yield account where it can grow a bit of interest but still easily accessed when needed.
How to choose one:
Look for FSCS-protected banks (up to £85,000 protection)
Check withdrawal limits (you want instant or easy access in emergencies)
Compare rates between banks to get a competitive interest rate for your money
✅ 5. Credit Account (Optional, but useful)
Credit is powerful if you use it wisely. Having a credit card and paying it off in full monthly helps build your credit score, which you’ll need if you ever want a mortgage or car finance.
Perks of responsible credit use:
You get section 75 buyer protection (which protects your purchases over £100)
Cashback or travel points
Credit-building history for future borrowing
But:
Never carry a balance to the next month if you can avoid it
Set up a direct debit to pay in full each month
✅ 6. Sinking Funds Account
This is your stress-free account for irregular but predictable costs:
Car maintenance
Holidays
Birthdays
Annual insurance payments
By breaking these costs into monthly chunks and keeping them separate, you avoid panicking (or pulling from your emergency fund) when they pop up.
How to manage it:
Work out annual costs
Divide by 12
Automate a monthly transfer so the money’s there when you need it
🎥 New Video This Week
6 Tiny Habits Keeping You Broke (And How to Stop Them Today)
If your money disappears by Week 3, you’re probably not alone but it’s usually not one big mistake draining your account. It’s the tiny habits you repeat without thinking 😅.
In this video, I break down the six small habits that keep you stuck and exactly how to fix them.
P.S. I’m opening a brand-new membership community soon, packed with live sessions, resources, and accountability to help you stay consistent with your money. If you’d like exclusive discounts and founding member bragging rights 🤭, join the waitlist here.
That’ll be all for this week. Please stay hydrated, this 31°C weather today has been no joke! I hope you’re finding ways to stay cool. See you same time next week.
XOXO
Chidera