Choosing The Right Bank Account

Is this your first time opening a bank account? Perhaps you are instead less than satisfied with your current provider and you are hoping to find viable alternatives. These are two of the many reasons why appreciating the mechanics behind activating a new account is an important topic that should never be overlooked. let's therefore examine some key topics such as the different types of available accounts, metrics to consider in advance and some of the top accounts currently available in the United Kingdom.

The Different Types of Bank Accounts

From a general point of view, bank accounts can be broken down into a handful of categories:

Debit accounts are arguably the most common, as these accounts enable you to withdraw money from cash points if you happen to be out and about. These electronic bundles are also extremely useful for automatically paying bills thanks to a feature known as direct debit. Most beginner's debit accounts are associated with a minimum balance. You will not be able to withdraw any more than this stipulated amount.

Checking accounts are similar to debit accounts due to the fact that you are able to withdraw money if necessary. However, let's keep in mind that checking accounts will require you to deposit money on a regular basis. Certain debit accounts will instead issue you a line of credit that must be replenished from time to time.  However, either of these options can be used to pay bills.

Savings accounts tend to be used (as you might have already guessed) for saving money as opposed to spending it. The main reason for this involves relatively higher interest rates. In other words, you will earn more interest with these accounts when compared to the other two mentioned above. The only possible drawback is that savings accounts can be somewhat inflexible if you have to withdraw a large amount of money. Some could even incur penalties if your balance falls below a certain level. This is why it is always important to read the associated terms and conditions. This also leads us to the next major point.

Top Tips and Tricks When Opening an Account

One of the most important features to address involves interest rates, as these will have a direct impact upon how much extra money these accounts will garner over time. Fixed interest rates offer you a steady return that is predictable on a monthly basis. Variable rates will change based upon the policies set forth by the Bank of England. While this is beneficial in the event that rates rise, the exact opposite is just as true.

Additionally, be sure to determine if you are provided with Internet access when opening an account. assuming that this is an option, what types of security protocols have been put into place. Most of the top providers employ a method known as 256-bit AES encryption. This is extremely safe and the chances are quite low that your account will be accessed by a third party (such as a hacker).

What types of customer service solutions area available if you have a question and are these offered on a 24/7 basis? While a telephone number is normally present, check for alternatives such as a dedicated email address and a live chat widget. On a final note, will you be able to access a representative on a mobile device? If an online bank account is not mobile friendly, it is normally best to look elsewhere.

Take a look at the reviews of previous and current clients in order to further determine what others have had to say. This is one of the best ways to form an objective opinion before committing to a certain product or service.

A Quick Look at the Most Popular Bank Accounts in the United Kingdom

Here are a handful of providers which are worth examining in detail:

It is always wise to visit the official website of each firm, as you will be able to encounter specific details as well as some of the amenities that each has in store.