Types of Bank Account - What Are the Different Types of Bank Accounts Available
Choosing the right bank account is important for your financial future.
This article will help you decide whether you need a basic account, current account or a savings account.
Basic Bank Account A basic bank account will usually allow you to receive money and give you a cash card.
You will probably be able to set up standing orders or direct debits to pay bills.
It will often allow you to do business at the bank counter.
It will probably allow you to use a cash machine to withdraw cash and check your balance.
This type of bank account can be seen as a stepping stone to being able to open a current account.
Current Account A current account will allow you to receive money plus you get a cash or debit card.
It will enable you to set up direct debits and standing orders.
Some may offer a cheque book and cheque guarantee card, although cheque usage is currently in decline.
You can usually access bank machines to check your balance get a mini statement and withdraw cash.
It may offer an overdraft and interest on any savings.
There may be online and telephone banking services available.
Savings Account A savings account commonly offers the following features.
You will be paid interest on any amount you have deposited.
Usually you can access your money with a cash card or over the counter with a pass book.
Savings accounts may also be term accounts where you must keep your savings invested for a defined term, usually six months or one, two, three or five years.
Access to savings accounts may be instant, or a fixed notice period.
Usually the term accounts may not be touched for the period of the defined term.
Which Type Is Right For Me? A basic account is good if you want to make sure you do not go overdrawn and if your credit rating is not good enough to get a current account straight away.
A current account will suit you if you want more options and services than a basic account can give you and you have a good credit rating.
A savings account will suit you if you want to put money away for a rainy day or if you are saving up for a specific purchase such as a car, holiday or the deposit for a house.
This article will help you decide whether you need a basic account, current account or a savings account.
Basic Bank Account A basic bank account will usually allow you to receive money and give you a cash card.
You will probably be able to set up standing orders or direct debits to pay bills.
It will often allow you to do business at the bank counter.
It will probably allow you to use a cash machine to withdraw cash and check your balance.
This type of bank account can be seen as a stepping stone to being able to open a current account.
Current Account A current account will allow you to receive money plus you get a cash or debit card.
It will enable you to set up direct debits and standing orders.
Some may offer a cheque book and cheque guarantee card, although cheque usage is currently in decline.
You can usually access bank machines to check your balance get a mini statement and withdraw cash.
It may offer an overdraft and interest on any savings.
There may be online and telephone banking services available.
Savings Account A savings account commonly offers the following features.
You will be paid interest on any amount you have deposited.
Usually you can access your money with a cash card or over the counter with a pass book.
Savings accounts may also be term accounts where you must keep your savings invested for a defined term, usually six months or one, two, three or five years.
Access to savings accounts may be instant, or a fixed notice period.
Usually the term accounts may not be touched for the period of the defined term.
Which Type Is Right For Me? A basic account is good if you want to make sure you do not go overdrawn and if your credit rating is not good enough to get a current account straight away.
A current account will suit you if you want more options and services than a basic account can give you and you have a good credit rating.
A savings account will suit you if you want to put money away for a rainy day or if you are saving up for a specific purchase such as a car, holiday or the deposit for a house.