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Choose the Best Bank Account for Your Circumstances

2nd Sep 2013

Bank accounts are a necessary tool in life, however, many people feel confused regarding what bank account will suit their needs. With so many banks wanting your business, you will discover that there are numerous different choices.

When choosing the bank account, you need to ensure that it offers everything you will need, and be the perfect match for your financial circumstances. Students and young people will often be able to open a bank account with no charges, and a better rate of interest. Businesses will need an entirely different style of bank account for tax purposes, which is why research is essential.

Several of Lloyds TSB bank account options are extensive and explain clearly what you will receive in the package. Your financial circumstances may restrict the style of account that you can open; however, there is always one you can open with a bank

The three main bank accounts that are available are basic bank accounts, current accounts and savings accounts. Basic bank accounts provide remarkably few benefits as they are designed to simply put money into the account, and withdraw when needed. These accounts are ideal for setting up direct debits, paying bills and building your credit rating.

Current accounts offer more features and will often have debit cards and overdraft facilities to help you with paying for goods. It is often considered a small upgrade from a basic bank account. You can earn money from a current account if the bank provides cashback offers for transactions.

A savings account like those at are designed to provide you with a way to save money for the future. These accounts are typically restricted, they may require a minimum balance before you can earn money and may put limits on accessing funds. They are designed for money to be put in and rarely to be taken out.

There are also student accounts that are excellent for ensuring you can financially get through college or higher education. These will often have better rates than their non-student counterparts. However, there may be fees that you will need to watch out for.

When choosing the right account for your needs, you need to consider the term and conditions, such as fees for removing your money. You do not want to be paying high charges for things you can easily avoid. With such tough competition throughout banks to get your business, rates and facilities have improved a vast amount. There are numerous tempting offers to get you to sign up and open a bank account. Everything may seem incredibly appealing, but you need to ensure that you read the small print and understand what is on offer.

Incentives are a vast way to attract new customers, and you should take advantage of these wherever possible. There are often cash incentives to open accounts, and these are extremely inviting, especially for students. Irrelevant of why you choose the bank to open an account with, you need to take time to compare bank accounts, research well, and ensure that you understand everything.

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