Current accounts – These are accounts that have a switch card facility. Sometimes they have overdraught facilities too. They usually do not pay interest and are used for day to day use and to pay in your wages.
Deposit accounts – These are simple accounts and do not tend to offer credit facilities like switch cards or credit cards. Deposit accounts are good for direct debits or for saving small amounts. They tend to offer a small amount of interest on credit balances.
Savings accounts – there is a huge choice of savings account and these vary from low interest accounts to high interest long term savings accounts and ISAs.
Most banks will offer two or three of each of these types of account and the general advice is that if you are employed and earning a regular wage, that you should have at least one of each. This may be true, but they don’t all have to be with the same bank. In fact, after recent years, many people have chosen to use more than one bank so that they are not left with nothing if something terrible happens and the bank closes, which did happen, to millions of people when the banks crashed.
It is also worth looking at building societies because they often offer excellent interest rates and have lower charges than many of the high street banks.
Take your time and choose accounts which let you stay in charge of your money, and help you make the most of the money have. Don’t be swayed by promises of free overdraughts or reduced home insurance premiums, these are not always a saving. Instead, look at what is on the market and choose the best option for you. Remember you are the customer, so you are in charge. Banks need us and our money even more than we need them and theirs.
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