choosing a bank account

Having a bank account is pretty much an essential part of life for most people; a facility to have your salaries paid, to be able to write cheques, get access to a credit or debt card etc. A bank account enables you to effectively manage your budget, and provides a safe and easily accessible place from which to run your accounts and finances.

There’s a fair choice of banks to choose from these days, and you will find that many offer excellent incentives to encourage people to open an account.

The interest rates offered by banks will differ, it’s something to bear in mind when looking for a suitable account from which to manage your finances. With so many banks to choose from, gone are the days of having to keep your cash under your mattress or in the biscuit tin!

Most banks offer accounts you can manage online, making opening and running a bank account even easier and more convenient. You will find both internet-only banks and also the internet arms of High Street banks. Online banking offers a fast and convenient solution to managing your account quickly and easily, 24 hours a day. You can look after your finances from the comfort of your own home, and you don’t even have to pick up the phone.

There are also a variety of different UK bank account types, such as current accounts, student accounts and savings accounts. The type of account you go for will depend largely on your circumstances and requirements. When you decide to open a bank account, there are a number of things to take in to consideration, including:

Incentives

Does the bank offer any incentive to open an account, such as High Street vouchers, cash, free cinema tickets, and free gifts? Many student accounts tend to offer free gifts and tickets as an incentive, but you will also find some account that offer freebies to non-students - this should not be the prime consideration!

Interest

The interest rate on accounts will vary from bank to bank, and you should check to see what rate of interest the bank offers. With current regualtions check the AER. If you are simply opening a current account for your wages to be paid into, then this may not be much of an issue - but the range is considerable - check www.moneysupermarket.com for current best buys. If you plan to open a savings account then this is something that you must check!

Internet access

You should check whether the bank that you are considering offers Internet access and 24hour access to your accounts online. Most banks now accommodate customers that wish to operate their finances from the comfort of their own homes.

Features and Benefits

You should check on the other benefits available with UK bank accounts such as an interest free overdraft facility. Many banks offer an overdraft at 0% interest up to a certain amount. You may be eligible to a higher overdraft, but will be charged interest on any overdraft facility used if it goes over the interest-free amount. You are not charged in your overdraft if you do not use it. Other benefits can include things such as free travel insurance, free car breakdown cover and a range of other possibilities.

Choosing a Bank Account