Types of bank account
CURRENT ACCOUNT
Most people open a current account. This will normally give you a cheque book and a debit card (that you can use in chip and pin machines). You can also have an overdraft with this type of account and you can arrange standing orders and direct debits to pay bills (e.g. rent, phone).
BASIC BANK ACCOUNT
A basic bank account only lets you spend the money that you have put in - you can not go overdrawn. Money from your job or benefit payments can be paid in and you can have a cash card to use at hole in the wall machines. You can arrange to pay your bills directly from this type of account - but remember only if the money is in your account to cover them.
SAVINGS ACCOUNT
There are lots of different types of savings account; you need to decide what is the best one for you - some of them have notice periods for getting at your money and they pay different rates of interest.
INTERNET BANKING
Most banks offer internet banking services. Internet banking is useful if you do not have time to go to a branch during normal business hours. This is great if you can’t get to your own bank and gives you access to information whenever you want, which makes it much easier to manage your money.
BANK STATEMENTS
Bank statements are prepared by your bank, they show a record of the money paid into your account and of your spending. It is VERY important that you check your statements - as sometimes banks do make mistakes - and also with identify theft on the increase you can spot any problems with your account.
Many banks and building societies make great offers to tempt you to open your account with them - we advise that you shop around and make sure that whichever bank or building society you choose is right for you and provides the services that you need!
- Is there a branch near to where you live?
- Do they have cash machines in your area?
- Can they provide you with an internet banking service?
- What services can they provide you with?
Use Price comparison websites to help you decide what is the best bank account for you.
