Banks offer a range of accounts that offer various options. Some will give you money back on purchases, some even give you phone and home insurance. However, they usually come with a cost or certain requirements.
Some are plain and simple – pay money in and pay money out accounts. You may need a very different bank account than even someone who is very close to you, such as your spouse. Some offer advantages that you may find useful, others may be the right fit for someone else. It can be hard to figure out which is right for you. Banks offer a range of options for this reason. Your local bank might be able to help you make the right choice.
What account will best suit your needs?
These are the most common types of bank accounts that are chosen in the UK.
Basic
As the name suggests, this is a basic bank account for your basic needs for everyday shopping, money transfers and more. There is no monthly fee which makes it an inexpensive option and is a great way to start when you don’t yet qualify for a current account. If you’re wanting something basic then a no credit check account might be the way to go.
Current
A current account is also a very popular type of bank account that gives you various options that you can take advantage of. Normally, you won’t have to pay a monthly fee for this account either but check the agreement and ask your advisor before you open an account. A current account is usually granted if you pass a credit check. Don’t worry if you don’t pass for any reason, you may be able to start with a basic account and then switch to a current account later on.
Packaged accounts
This is a type of current account that but may have some additional benefits such as insurance for your mobile phone or breakdown insurance. Some accounts include travel insurance or other options that might make it worthwhile to choose this option. However, a monthly fee is common with packaged accounts, so consider if the additional costs make opening one worth it.
Savings
There are many different kinds of savings accounts, some are tax free up to a certain amount, others require higher initial deposits. Generally, a savings account can always be a great way to save some money. If you open one with the same bank you can easily transfer some money from your everyday bank account to your savings account.
While these are the most common types of accounts, there are also student and graduate accounts and many others that may be worth considering.
