Account Benefits – Is Your Bank Account Best For You?
Bank accounts are essential to live and survive as an adult. Whether we are talking wages, mortgage payments, or just online shopping; these all need to go into/ come from a bank account.
According to thebanks.eu, there are 330 banks currently operating in the UK alone. With the Covid 19 outbreak we have more free time than ever before. This means now is a great time to see if your money is working best for you. Below are some of the different bank account options for you to look into, depending on your financial requirements.
Saving Accounts
With interest at an all-time low, you don’t just want any old saving account. There are four main types of savings accounts; Instant Access, Investment ISA, Cash ISA and Fixed Rate.
Instant Access accounts are accounts you can pull your money out of, any time, without incurring penalties. The most common saving accounts, but usually with the lowest interest rates.
Investment ISAs are great for investing, as you pay no tax on any income made through your investments, although be aware these are high risk accounts; meaning you may get back less than you put in.
Cash ISAs, also known as NISAs, are saving accounts that generate tax free interest.
Fixed Rate saving accounts are just that – you will be eligible to receive a fixed rate of interest over a certain amount of time. However, you will be unable to, or penalised if try to withdraw your cash earlier than agreed.
Package Accounts
Package accounts, are bank accounts you pay a monthly fee for, in order to receive certain benefits, usually in the form of insurances. These can range from phone and tablet insurance, breakdown insurance, and holiday insurance. Some will offer more, including a discount card on eating out, discounted home insurance, cashback on purchases and some direct debits, and access to better saving accounts. Depending on your needs, these are usually worth looking into as they are usually cheaper than buying independent insurances elsewhere, especially if you are benefiting from more than one.
Business Banking
With previous business accounts notoriously charging hefty amounts to so much as smell your money, there is now a much bigger range of business banking, mainly through apps or online, that charge little, or even nothing, to manage your business finances. Although you only legally require a business bank account if you have a limited business, there are still many benefits of having a business account – even if you are a sole trader. Thorough research is needed into which account is right for you, but know that business banking does not have to cost a fortune.
Fee Free Accounts
Fee free accounts, or basic accounts, are exactly that – a basic bank account. You are able to have wages and money paid in, take money out, transfer money, pay direct debits, pay for items in shops or online with debit cards. These are perfect for younger people, or people who have a second account, or those who just want a no-frills bank account.
