Although most of us realise how important it is to be good with managing money, that doesn’t always mean we know as much as we think we do. Different accounts have different uses and benefits, so, here are some of the most common types of bank account.
Types of Accounts
Current account: A current account is the standard bank account in the UK. It allows you to have direct debits and standing orders, as well as instant transfers. You can also access both authorised and unauthorised overdrafts and most come with an app that allows you to manage your account. These accounts are used for anything from receiving payments and wages to making online and face-to-face purchases.
Simple Cash/Fee-Free Account: This type of account functions the same as a current account but with more limited capabilities. For example, you will not get a cheque book or be allowed to have an authorised or unauthorised overdraft with one of these accounts.
Student/Graduate Account: Student bank accounts are great for anyone who is in higher education as they often come with perks that are extremely useful to students. Some perks that may be offered include things like free or discounted travel on public transport (mainly buses and trains), fee-free or lowered/no interest on overdrafts as well as things like vouchers for local cinemas, bars and restaurants.
Multi-Currency Account: These types of accounts let you keep your money in one or more currencies. This is extremely useful if you travel a lot and need to send money in foreign currencies to cover any costs, if you need to pay mortgages or rent or any properties abroad or if all or any of your wages are coming from aboard.
Savings Account: A savings account is perfect for anyone who is looking for a place to store their savings and gain interest on them. A savings account will give you a place to save your money where you will have easy access to it and can add to it as you go. This is great for people who have a savings goal such as a wedding or a holiday and need a way to save a little at a time over a set period of time. With most accounts, you will have instant access to your money to transfer it between accounts as you see fit.
Should I Switch?
Sometimes you may find that you are banking with the wrong bank or have the wrong type of account for your needs. No matter what the reason is for needing to change banks or bank accounts, switching banking is now easier than ever.
So, if you’re disappointed with your current bank, or you think you might be able to get a better deal with another bank, then go ahead and make the switch.
Your money ins incredibly important so it is important that you have the right type of bank account for your needs. Once you do have a bank account that suits you, it will be a lot easier managing your money day-to-day and saving for your future.