Opening a personal bank account

It is easier and cheaper to pay bills. Some employers will only pay you by putting the money into your bank account. It's safer than keeping lots of cash about the place.

What sort of account?

Most bank accounts fall into three categories:

• A basic account. You can pay money into your account, get cash from an ATM and pay regular bills. You cannot overdraw and so you can avoid the risk of running up debts and incurring charges. They may be particularly suitable as a first account.
• A current account. This is the most common. It does everything a basic account does but includes features like a cheque book and cheque guarantee card, a debit card (that allows you to buy things in shops and pay for them out of your current account) and the opportunity to negotiate an overdraft with your bank. But remember – nobody has a right to an overdraft; borrowing on overdraft costs money; if you go overdrawn without getting your bank's agreement they might refuse cheques and direct debits etc.
• A savings account. This pays a higher rate of interest and is designed to help you save up for things. Usually there is no cheque book or debit card and you cannot pay bills from the account. Some accounts, especially those paying the highest rates of interest may require you to give notice before you can withdraw your money or may limit the number of withdrawals you can make.

How do I choose a bank?

Related Links

Banking Code - March 2003 (Internal Link)

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