May
5
If you're thinking of moving to the UK, one of the most important things you'll need when you get here is probably a bank account. If you're going into employment in the UK, you'll almost certainly need an account… as your employer will need a way of paying you your wages.
However, with so many different accounts on offer, it can often be hard to figure out which one would be right for you. That's why here, we're going to run through some of the different types of bank account available to people in the UK.
Current accounts
Current accounts are often seen as the 'standard' bank account - in other words, the type of account most people would open at a high street bank or building society.
When opening a current account, it's likely that the bank will carry out what's known as a 'credit check' (just as they would with most other financial products).
This will basically let them see how you've handled your finances in the past. If you've encountered problems with your finances, it may affect your chances of being accepted.
For more information on current accounts;
• http://www.direct.gov.uk/en/YoungPeople/Money/ManagingYourMoney/DG_10027626
Savings accounts
Savings accounts are, as the name suggests, accounts used for saving money. An individual will invest money into their savings account and could have a fair bit of interest paid on their balance.
People often open savings accounts if they're planning to make a big purchase, or to simply save money for their future.
The interest paid on the individual's balance will vary depending on the account they have opened (along with the Bank of England's 'base rate').
For more information on savings accounts:
• http://www.moneymadeclear.org.uk/tables/model/model_cash_deposits.jsp
Basic bank accounts
If you've been turned down when applying for a current account, or you've experienced financial difficulties in the past and don't think you'll have your application for a current account approved… a basic bank account may be right for you.
They are available from most banks, even if they aren't often promoted as much as other accounts - you may have to go in and enquire.
Most basic bank accounts offer the very 'basic' banking features you'd receive with a current account - namely somewhere to store your money, a Direct Debit/standing order facility to pay bills and a cash card or debit card to make purchases/withdraw money with, but little else.
For more information on basic bank accounts:
• http://www.thinkmoney.com/banking/basic-bank-accounts/
Note that whatever kind of account you're applying for, you'll need to be able to prove your ID and address. Some accounts will also require you to have a steady income.
These are just three of the different types of bank account on offer in the UK. To find out which one may suit you the best, you should speak to a banking adviser.
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