Banking

How To Choose The Right Bank Account That Will Suit Your Needs

How To Choose The Right Bank Account That Will Suit Your Needs

Current Accounts

A bank account is very important.A current account is a personal bank account that allows you to take money out of at any time using your cash card. Most people use this type of bank account.

Benefits of a current account:

  • Allows you to pay bills by Direct Debit order.
  • You can use it for payments such as salary.
  • Allows you access to an overdraft (this requires authorization from the bank).
  • You can Pay with the card and withdraw money from ATMs.

Jam jar bank accounts

Are designed to let you divide your money into different jars/pots within one account.

They are called budgeting accounts since they help you budget. You just need to decide how much money goes into each jar by working out your bills and how much is left spending or saving.

Benefits of jar accounts:

You can also receive your salary from these accounts and pay your bills by Direct Debit or standing order. The only setbacks of these bank accounts are the monthly fee charges. This type of account may be of benefit to you if you need a bank account that helps you to budget.

Packaged bank accounts

Packaged bank accounts are current accounts that come with a package of extra features. The features can be from travel insurance, to better rates on overdrafts etc. If you decide on opening a packaged bank account you need to check the additional features and see if you can’t get them cheaper somewhere. Check their bank charges as well.

The extras in a packaged bank account can include features like insurance cover, preferential interests on overdraft and other extra services.

Fee-free basic bank accounts

These are designed for people who don’t have bank accounts or not qualifying for a standard current account. Fee-free bank accounts can be beneficial if your credit rating is low or you’ve got no credit history.

Fee-free basic bank accounts don’t have overdraft facilities but you can receive your salary from it and pay your debit orders.

Students bank account

Most banking institutions offer student accounts. These bank accounts are designed for students and graduates (those in higher education). They let students pay money in and out, and offer additional benefits such as an interest-free overdraft.

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