| are looking to open a new bank account, it is a good | | | | relevant sign. The debit card for this account also |
| idea to learn about the different types of bank | | | | permits customers to make payments via the chip and |
| accounts available, to ensure that you get the right | | | | pin process. |
| account for your exact needs. | | | | A current account will typically also return low levels of |
| There are several types of bank accounts available, | | | | interest on the money in your account, but unlike the |
| each one being tailored to slightly different | | | | basic account, may provide the facility of an overdraft |
| requirements and also varying from bank to bank. | | | | which needs to be arranged with your bank. |
| Each type of account offers different advantages and | | | | Customers are also usually entitled to a chequebook |
| for many it might be beneficial to hold a combination of | | | | as a method of payment. |
| accounts. | | | | Savings Account |
| Basic Bank Account | | | | Savings accounts will offer a higher rate of interest to |
| This type of account usually offers the customer the | | | | the customer and therefore provide a means of |
| facility to have regular payments paid in free of | | | | saving money and to see a return in the form of |
| charge, and to set up direct debits or standings orders. | | | | interest. This often means that you cannot move your |
| The customer’s bank should issue the account | | | | money too often. In fact, some savings accounts |
| holder with a card to withdraw money, which may or | | | | require that you give notice before withdrawing |
| may not be free of charge, depending upon where the | | | | money. Customers should also be ware that interest |
| money is withdrawn. | | | | gains will be taxed, and are normally deducted before |
| A basic account normally lacks the facility of a | | | | being received by the account holder. Non-taxpayers |
| chequebook and an overdraft, the benefit of the latter | | | | in the UK can claim back the tax on the interest |
| being that the customer need not worry about | | | | gained, but for UK taxpayers, an ISA may be a better |
| accumulating debt. On the downside, the interest rate | | | | option for saving money. |
| received by the customer may be lower than that for | | | | Student Account |
| a current account. | | | | The main feature of a student account is that they |
| Current Account | | | | normally offer an overdraft facility for students. The |
| Like the basic account, current accounts are tailored | | | | overdraft limit will vary between banks, but will |
| towards everyday use such as paying in money, | | | | commonly be a free facility. Banks also offer different |
| withdrawing money, as well as setting up standing | | | | incentives for students to open an account, which may |
| orders and direct debits. Customers will receive a debit | | | | include complimentary insurance, electronic devices, |
| card with capability such as visa or maestro, enabling | | | | railcards and more. |
| the customer to withdraw money where they find the | | | | |