Choosing the right bank account

For most people a bank account is an invaluable solution to managing day to day finances, enabling us to have somewhere to have out salaries paid in, as well as somewhere from which to pay bills, set up regular payments, and keep money until we need to withdraw it. A current account is the most popular types of bank account, and one that is used by people all across the UK. These accounts are very popular because of the facilities and benefits that they offer, and for most people financial management would be extremely difficult without having current account facilities in place.

A current account is one of several different, commonly used bank accounts that are available in the UK. These include premier accounts (which can come under different names according to the bank that you are with), which are an extension of the regular current account, and basic bank accounts, which are often offered to those with poor credit or no credit history. Some consumers with decent credit will be eligible to apply for any of these bank account types, whereas others will only be eligible for the most basic banking facilities. A current account is the best suited account for the majority of people, but your eligibility for a current account will depend on various factors such as your employment status and your credit rating.

Current accounts

The current account is the most popular type of bank account, and is popular for a number of reasons, namely because of the facilities and benefits that these accounts offer. These accounts are offered by all UK banks, and are ideal for those that want to conduct day to day transactions via their bank account. The interest rates paid on current accounts is not high, so these are not accounts in which people deposit cash in order to accrue savings, but rather an account that is used to make financial management easier and more convenient.

In order to have a current account you will usually need to have a decent credit rating, and most banks will conduct a credit check when you apply to open your current account to determine whether you are eligible to open such an account. You will also need to be earning a regular income, and the bank will want your income to be paid into the current account each month. When you have a current account you can have your salary paid direct into the account, or for those that get paid by cash or cheque you can make the payment into the account yourself.

A current account offers a range of valuable facilities. In addition to providing a receptacle for your salary, you can also set up direct debits and standing orders so that any regular payments can come directly out of your account on a set date each month without you having to take any further action. In addition to this you can call in at the branch, phone the bank, or go online to make one off payments, transfer cash, check your statement or balance, and more. You will receive a debit card and cheque book with your current account, making it easier to withdraw cash or make cashless payments when you make purchases. Many current accounts also offer an overdraft facility, although again the amount you get will depend on your credit.

Basic bank accounts

The basic bank account is a no-frills version of the current account, and is usually offered to those with a damaged credit history or no credit history. With this type of bank account you can still have your salary paid into the account, and you can still set up direct debits, standing orders, and make one off payments. However, with a basic bank account you will not receive any overdraft facility, and in many cases you will not receive a cheque book or debit card. Many basic bank accounts offer a cash card so that you can make withdrawals – however, you will not be able to make payment with your cash card in the way that you can with a standard debit card.

Many people start off with a basic bank account, and these accounts are valuable to those with damaged or no credit history, as well as for those from other countries that have come to live and work in the UK. Most banks offer basic bank account facilities, and in many cases those that apply for a current account and are turned down for one of a number of reasons are offered a basic bank account as an alternative. Once your credit has built up or improved you can always switch to a regular current account.

Premier banks accounts

Premier banks accounts are available from many high street banks these days, and are an extension of the regular current account. These accounts come under different names depending on the bank that you go through – for instance you will find that it is called an Additions Account by Barclays or a Gold Account by Lloyds TSB. The premier account offers a range of additional benefits to current account holders, but you will have to pay a monthly fee in order to have one of these accounts.

The fee for this type of account can vary, but average around £10 per month. For this you will get a number of benefits such as increased security, free travel benefits such as insurance cover, free breakdown cover on your vehicle, preferential rates on your overdraft and any loans with the bank, commission free foreign currency, and various other benefits. However, before you commit to this type of account you should make sure that you will actually get your money’s worth from the benefits offered, as if you are unlikely to make use of the benefits offered then there is little point in opting for this type of account.