With the number of bank accounts today, it can be challenging to choose one that will help you with whatever it is that you need to do. Each bank account has its own features as well as advantages and disadvantages. So knowing each of them will help you decide which bank account is ideal for you.
Types Of Bank Accounts
Student And Graduates’ Bank Accounts
There are bank accounts that are specifically for students and graduates, wherein the interest will be overdraft up to the amount that’s agreed on. Usually, banks offer great accounts to graduates as this is their way to secure these people and become long-term clients.
Convicted Or Prisoners’ Bank Accounts
If you are convicted or a prisoner, you can still open a basic bank account. You don’t have to worry about anything because banks usually don’t check criminal records. But they do know when a person has a record of illegal activities or Fraud. These banks have the right to reject any applications from people with these records. Also, if you have any undischarged bankrupt, the bank may reject your application.
Jam Jar Accounts
Jam Jar accounts are also known as rent or budgeting accounts, which is specifically designed to help a person to budget. The bank will let you divide the money to “jars,” but you will be the one to decide as to how much money will go into the jar each month. You will be the one to decide as to how much you need to pay for your bills and the amount left after saving or spending.
One problem with Jam Jar accounts is not they charge their account holders with monthly fees. There will be instances where you will have to do to a housing association or a Credit Union, but the fees will already be paid for you. If you want to avoid charges for direct debits, and if you want to budget your money, then this account is the right one for you.
Fee Free Bank Accounts
The fee free bank accounts is perfect for you if you can’t open a typical current account. The reason may be because you don’t have a credit history or your credit rating is very low. This type of bank account may not have any overdraft facility, but it will let you pay bills by standing order or Direct Debit. It will also let you receive payments, including benefits, wages, or salaries.
Packaged accounts offer extra features, but they have different fees that you should know. Some features that they offer are car breakdown cover, insurance cover, special offers, and other extra services.
Current accounts are the most popular bank accounts today, as this account is used to manage day-to-day finances. A current account is used to pay bills by standing order or direct debit. It can also have access to an overdraft, but the bank needs to authorize this. Another good thing about current accounts is that you can use this account to withdraw funds from any ATM.
Start Comparing Features And Account Charges
A lot of banks have different ways to help attract new clients, and this is by giving incentives. But you need to make sure that these incentives will not have any strings attached. Some deals that these banks will offer are monthly credits, higher interest for a certain period, and cash incentives.
Interest Rates On Balances
If you are someone careful about spending and don’t want to go overdrawn, you need to look for accounts that pay interest on your balances. But if you often use your balances, you no longer have to check for the interest, because there will be none. The best thing that you need to do is to focus on the charges, especially if you are earning a little low.
Fees And Charges
Fees for every bank is different, but the highest fee will be required once you go beyond the overdraft limit if there is one. The best thing that you can do is to choose a bank that will provide you a good overdraft limit without any fees or with an interest rate that’s low.
When looking for a bank, you also need to take into consideration their customer service. You surely don’t want to end up with a never ending ringing sound or something that will put you on hold forever. So choose a bank with reliable customer service and something that can perform the duty of a customer service agent.
How Do You Want To Deal With Your Bank
You need to know how you want to deal with your bank. For instance, you can deal with your bank through cashpoint machine, mobile or internet banking, telephone banking, or by going to the branch itself. If you want to use mobile or internet banking, you need to make sure that your chosen bank has that option. Always talk to the bank first about the convenient ways to access them.
Switching Bank Accounts
When switching a bank account, it would be because of certain reasons, such as being unhappy with the service that they have. If you decide to switch to a different bank account, you need to be ready because usually, it will take seven business days to switch from one account to another. The reason behind this is because the old bank will have to fix everything from outgoing to incoming payments to your new bank.
If anything goes wrong, you will be refunded with charges and interest on your new and old accounts. This is because your money and transactions are all backed by a guarantee.
These are all the tips on choosing the right bank account that you need to know. These tips will help you get the bank account that you will need and an account that won’t stress you with numerous fees.
Based on Materials from Money Advices Service
Photo Sources: The Balance, Early College, Pixabay, Salesforce, Flickr