Money Outlet

An Introduction To Bank Accounts

Bank accounts allow you to pay your bills, receive money such as your salary or other forms of deposited income such as benefits. In addition, it’s a great way to keep track of your cash. Every bank or building society offers bank accounts all with varying rates of interest. One thing to consider when applying for a bank account is the interest rate you may earn as a benefit from the bank for depositing your money with them.

There are 3 main bank accounts that most UK residents possess. They are:

A basic bank account:

• The basic bank account simply allows you to pay money out, for example your bills. Also, you can receive money, such as you monthly wage.
• Allows you to pay in cheques. You may have to wait several days for the cheque to clear.
• Pay bills like gas and electric.
• Withdraw money from ATM’s or cash machines as well as access your cash at the Post Office.

A Current Account:

• Current Accounts allow you the same flexibility of a basic bank account.
• Will give you a cheque book
• Means you get a debit card
• Offers telephone and online banking
• Children can receive special accounts

A Savings Account:

• Is recommended if you plan on saving money for future needs
• Will give you interest on your money (tip: Seek out a high interest account)
• Generally pays out higher interest than a Current Account
• National Savings & Interest accounts are available
• Some Savings Accounts pay tax-free interest

The above information is very general and designed to give you a basic idea between accounts. Decide which type of account is right for you and apply for a bank account right here at the MoneyOutlet.