Getting a bank account

Summary

There are different types of bank account that you can use for different reasons. Here we tell you about the main types of bank account, and what you can use them for. You can use a current account to help you manage your money day-to-day. This includes: * receiving money - such as your salary or benefits * keeping track of where your money is going. Some current accounts can also earn you interest on the money you have in the account, although this is likely to be less than many savings accounts. With a current account, you will get a cheque book which you can use to take money out. You may also get a debit card which you can use in shops and cash machines. The bank may let you have an overdraft and access to other kinds of credit. You will be allowed to set up direct debits and standing orders. Some banks will let you cash a current account personal cheque or use your cash card at the Post Office, free of charge. Ask your local post office if you can do this free from your current account. You can use savings accounts to put away money that you'd like to save for the future, for emergencies or to buy expensive purchases like a new car or a holiday. A savings account will give.

Key information

• receiving money - such as your salary or benefits
• keeping track of where your money is going.
• outstanding county court judgments against you
• don't have to have any money to put in the account to open it
• don't have to pay any fees
• can pay your wages, salary and benefits directly into the account
• can pay in cheques and cash
• can pay bills by direct debit
• can withdraw money from cash machines.
• you won't be able to have a cheque book or go overdrawn
• if you've set up a direct debit and there's not enough money to pay for it, you might be charged for this
• how the bank or building society will give you information about your account

Practical guidance

• Source: Getting a bank account

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