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.
Click here for more information on bank accounts
Compare cheap bank accounts, loans, mortgages, remortgages, credit cards, and insurance products right here at the MoneyOutlet. Save Time & Money by comparing the Market within seconds!
Published on September 30, 2007
Digg | 
del.icio.us | 
StumbleUpon | 
Reddit | 
Yahoo! | 
My favourites
Latest Banking and Saving Articles
Bank Charge Case To Go On For Weeks
The Office of Fair Trading is hoping the High Court will rule in its favour which would allow banks' fees to be challenged under consumer law. There are eight lenders who are accused of making unfair charges to customers, among them is the Royal Bank of Scotland. The High Court, however, has been told that current account customers are comfortable with the system of charges of current accounts... Read More
January 24, 2008
Banks Have Hit Savers' Interest Rates
The global credit crisis has eventually led to the Bank of England cutting back the base rate to 5.5%. Consumers were hopeful that UK banks would reduce their mortgage rates in accordance with the lowered base rate but many still refuse to pass on any significant savings. Experts agree banks are trying to recoup losses. Now banks are cutting their rates on savings accounts... Read More
January 14, 2008
Bank Loyalty On The Wane
Britain has seen an increase in customers switching to a new bank. Many customers say they feel their bank doesn't treat them as a valuable customer or have experienced unhelpful staff. Just a few years ago less than 1 in 10 switched whereas today, almost 1 in 5 are opting for a new bank. Research shows banks need to focus on customer support more than ever... Read More
December 11, 2007
Abbey Cut Back Savings Rates
Lenders have been tightening their lending criteria on mortgage and loan borrowing and now seem to be doing the same with savings rates as well. Some of the top banks are cutting back rates however, you may be able to find a good deal if you can afford large deposits each month. Shopping online for a savings or current account is recommended... Read More
December 10, 2007
Co-op Breaks FSA Guidelines On Overdraft Charges
The Co-operative bank has changed their guidelines toward overdraft charges which some say will affect low income customers who tend to run out of money before the end of the month. These changes seem to be in violation of FSA guidelines. Those on benefits could be hit hardest... Read More
December 3, 2007
Refer a Friend
Why not tell a friend about Money Outlet? Click here
