What is a bank account?
A bank account allows you to store money, take money out and put money in.
How can accounts help you?
Bank accounts allow you to keep your cash safe and manage your money easily in one place.
They allow you to make payments automatically so you do not forget to pay bills.
They provide you with statements, which show money that has gone in and out of your account. Use these to check your spending. Common types of account include:
1. Current Accounts
A current account is an account which you can use in branch, online or over the telephone. A current account is typically free to open and use.
If you spend more money than is in your account, you may become overdrawn. This can lead to expensive charges.
Being overdrawn means you have spent more money than you have in your account. You will have to pay this money back, and if you have not agreed this with your bank, they may charge you a lot of money for this.
2. Savings Accounts
A savings account is a safe way to store your money. It pays interest on the amount you save.
Interest is extra money. On a savings account, this is extra money you earn for keeping money in the account.
There are also other types of bank account. You can find out about these online or by going in to your local bank.
When you are opening an account, explain to the member of staff at your bank what you will be using it for and they will advise you 5 which account is best for you.