Types of bank account

Important facts about bank accounts in the UK

Banking 13Modern bank current accounts are often more than simply someplace safe to keep your money and carry out your regular banking practices, with banks offering customers various other benefits. Many banks for example offer insurance policies with their accounts or maybe cashback on some of your spending. Most bank accounts will even feature an annual interest payment on the balance of your funds. After starting your account, you may also typically receive a debit card which may be used to buy goods and services. Some of the added benefits might also be supplied at the bank’s discretion, particularly things like credit cards and loans.

Accounts for Couples

Joint bank accounts would normally be taken out by a couple, or a group of close friends, and are in fact much the same to a standard bank account. With such an account you can pay things like invoices from exactly the same spot, instead of from separate accounts, which can be an enormous advantage. With a joint account, all parties must have a high degree of trust between the account holders, as each person will be able to get money without clearing it with the others. Really, if you incur any debt through your account, for example through an overdraft both parties are responsible for reimbursing it regardless of who spent the money. It will also be a prerequisite that all parties pass a credit check to be able to start such an account.

Accounts for Companies

With a business account you may be able to keep your company and personal spending separate, whilst still having similar characteristics to a personal account. If you’re a limited company or partnership, then it’s a condition that you simply establish a business account. You’ll additionally have to have two crucial signatories for this kind of account, although others can also be added if required. If you’re a sole trader then you can select between having a business, personal account, or both. Company accounts can vary from basic accounts with a simple debit card and cheque book to more intricate accounts with additional advantages, for example insurance or access to a company advisor contained.

If you find yourself in the situation where you have been declared bankrupt, then setting up an account can be quite an intimidating procedure. Although you might struggle to get any credit facilities, you may still have the ability to open an account if you’ve been held bankrupt. As such, you will likely need to start what is called a basic bank account. There is, in addition, the option to open an account without getting a credit check, which are referred to as bonded bank accounts. Although, you might need to pay a small fee in order to open such an account.

Bank Accounts for kids

Children can open current accounts from around 11 years old. Bank accounts for kids are much the same as adult accounts, although they usually offer a lesser withdrawal limit per day. Older children are generally offered an account that features a higher daily withdrawal limit. Kids under 11 are normally not able to open a current account but can open a savings account from the age of 7. Bank accounts for kids never use a credit facility, so children can just spend what is in their account and no more.

Accounts for Bad Credit

Even if you have a lousy credit rating it is possible to secure a bank account with a debit card and the facility to use direct debits. The sort of account that can generally be offered is called a basic bank account, but it’s not always immediately evident that they are offered by banks, and so you may need to inquire. These accounts WOn’t have an overdraft facility and you won’t receive any interest payments if the account is in credit but you’ll have the ability to do everything that you can do with a regular bank account. Most individuals are tolerated for basic bank accounts, even if, for example they’re currently in an IVA, DMP, DRO or are a released bankrupt.

Student Bank Accounts

With a student account you’ll receive all of exactly the same things as a normal account, and provided that you stay within your limits you’ll additionally be offered a free overdraft facility. Other advantages of such accounts include matters like railcards. In order to qualify for this kind of account you may normally need to supply some sort of evidence which you are really a pupil. In order to keep your overdraft capability for a further year after you’ve finished your class you will generally have the skill to open what is referred to as a graduate account.