Different types of bank account for UK consumers
By admin • Jun 7th, 2008 • Category: Banking
Over recent years banking services in the UK have come a long way and consumers have enjoyed more choice than ever when it comes to finding a suitable bank account for their needs. In the past most banks offered one standard bank account for the average consumer, take it or leave it. However, with competition stiff between the growing number of high street and Internet banks, and consumer needs expanding on a continual basis, most banks now offer a choice of accounts to suit a wide range of needs and circumstances.
Whether you are opening your first bank account, you need an account that cater for those with poor credit, or you are looking for a bank account that offers that extra something, most banks will have the perfect solution to your needs. From junior bank accounts and student accounts to premier accounts and basic accounts, there is a bank account available to suit most needs and circumstances, and a good choice of banks that offer these facilities.
Basic Bank Account: One type of bank account offered by most UK banks is the basic account, which is usually given its own name by the individual banks, such as the Cashcard Account from Barclays or the Easycash account from Halifax. This type of bank account is ideal for those that are having problem opening a regular current account due to problems such as bad credit or no credit history. These basic bank accounts were formed in conjunction with the government in order to help give more people access to banking facilities in the UK. This type of account usually offers a cash card for withdrawals and standing order/direct debit facilities, but no overdraft, cheque book, or debit card.
Current Account: The current account is an account that most people use for their everyday banking needs, such as having their salaries paid in, making bill payments and direct debit payments, making cash withdrawals and debit card purchases, writing cheques, etc. Current accounts can vary from one bank to another, but most offer facilities such as a debit card and cheque book. Some also offer automatic overdraft facilities. You can set up direct debits and standing order from your current account, enabling automatic bill payment.
Premier Account: The newer breed of bank account is known as a premier account, although most banks have their own individual names for these upgraded accounts. In order to upgrade to a premier account you will be charged a monthly fee, which can vary from one bank to another. In return for this you will receive a range of benefits including free travel insurance and free breakdown recovery, selected discounts, preferential borrowing rates, commission free travel money, card protection services, interest free overdraft facility, shopping discounts and services, extended warranties, insurance discounts, legal services, and more.
