Bank Accounts

For both individuals and businesses, a bank account is pretty much an essential thing to have. It is necessary for transactions such as BACS payments where money is transferred between one bank account and another, and many employers will insist upon paying a worker's salary into a bank account.

In the past, a bank account was the place where individuals left any spare money they had and earned interest on that amount. Nowadays however interest on current accounts is usually minimal and savers are encouraged to allocate any spare cash into more specific savings accounts such as fixed-term bonds, ISAs, or internet-only savings accounts which, as the name suggests, can only be accessed online.

This means that for many the choice of who to open a savings account with no longer comes down to who pays the highest rate of interest, but is more dependent upon other factors and considerations such as customer service and reliability.

The competition from banks and building societies to tempt customers into opening an account with them rather than a competitor has led to them offering other services like travel insurance. Some also charge a fee in return for higher rates of interest, so it is worth taking careful note of what each one offers and any charges that apply when choosing a bank account provider.

Disclaimer: The information contained in this website is intended as a guide only and not as specific financial advice or recommendations. Any links to external resources are provided as suggestions and the owners of All Things Money.co.uk do not accept responsibility for any transactions you engage in with them or information provided by them. For specific financial advice which takes into account your personal circumstances contact an expert.