What Sort Of Bank Account Do I Need?

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bank-account-statementWhen opening or changing your bank account, the wide amount of choice available can be overwhelming. Each account has a different range of benefits, with the differences sometimes hard to distinguish for the unaccustomed eye.

Most banks offer savings accounts, current accounts, premier accounts and many more besides - but which one is right for you?

Student accounts

For many people, the first bank account they open themselves will be their student account. As the first foray into adulthood and independence, opening an account is a big step in anyone's financial life and differs greatly from any savings account you may have had opened for you as a child.

Although this can be daunting, banks such as the Co-operative bank will help you through the process to ensure you understand the small print and are happy with all the features of your new account.

The main benefit of a student account is typically an overdraft. This gives you instant access to extra funds, without the fear of racking up costly charges. Overdraft amounts will vary but you could gain access to as much as £1,500.

Repayment rates and fees should be researched carefully when looking at this type of account and it is always advisable to avoid dipping into an overdraft wherever possible.

Joint accounts

For couples or business partners looking to consolidate their finances, a joint account can be a great solution. A combined account will help you to keep track of your finances, pay the rent or save up for a special treat.

As both parties will have access to the account, it's important to check the account regularly and ensure that everyone is happy with its usage, to avoid unexpected problems.

Standard current account

The current account is really the workhorse of the banking world. Used for everything from paying bills to saving, a current account is for all of your daily financial needs.

However within this bracket there is still a wide range of options to choose from. Banks will offer various benefits depending on how much you pay in each month, ranging from preferential interests rates to free overdrafts.

If you do end up using your overdraft every month, make sure that you get an account that offers you a good rate. Some banks will give you a ‘free' overdraft for a set amount whereas others will charge either a one-off fee or a daily amount.

Premium current accounts

For anyone that earns more than £1,000 per month, a premium current account could be the best option. Benefits will vary depending on your bank but for a small fee you could get insurance cover for your home, phone and holidays as well as good interest rates and a large interest-free overdraft.

Some banks also offer exclusive mortgage deals to premium current account holders so if you're thinking of joining the property ladder or moving house, getting a premium account could be a good place to start.

When opening a bank account, it's always a good idea to talk to the staff at your local branch so you can ask any questions face to face and make sure you're getting the best account for you.

When it comes to banking, everyone has unique and varied needs depending on how they manage their finances. Thankfully, banks have responded by creating a range of accounts to suit most requirements and that means there is certainly an account perfect for you.

A post by Kidal Delonix (2831 Posts)

Kidal Delonix is author at LeraBlog. The author's views are entirely his/her own and may not reflect the views and opinions of LeraBlog staff.
Chief editor and author at LERAblog, writing useful articles and HOW TOs on various topics. Particularly interested in topics such as Internet, advertising, SEO, web development, and business.

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