There are so many choices when it comes to bank accounts. Between savings accounts, checking accounts and every variation on them, you may have more choices that you know what to do with. Here we will look at a few of the most common types of accounts and help you decide which kind of bank account you should open.
These are also called checking or debit accounts and they allow you to access your funds through a debit card. Often, the debit card can be used like a credit card, allowing you to use your money practically anywhere. The money won’t grow any interest though, but you can access it with ease.
This type of account can be used to pay bills automatically and to deposit your paycheck. It is the most practical and most common type of bank account, and you will probably want to start with this one before you consider opening any other type of account.
With a packaged account, you get everything from the basic account but with some additional features. These could include insurance for your house or vehicle, emergency cover for car breakdowns and additional services that can make your life easier. You may also enjoy special offers, such as discounted holiday packages and various offers from credit card companies or the service industry.
For these extra features, you will be charged a small monthly rate. This charge will be deducted automatically from your bank account, and the rate will vary by bank.
Before you choose one of these, make sure that you would actually make use of all the extra features. You may find that there are plenty of additional options that are costing you each month that you have no use for. Also check around to see if you can find better rates for equivalent services from a different bank.
This kind of account is bet for people who have some extra money and do a lot of travelling. Many of the services offered in the packaged account can make travel cheaper or easier on them. Of course, you can search out packaged accounts that have benefits that are suitable to your lifestyle.
Easy Access Savings Accounts
An easy access account is a lot like a standard savings account. You grow interest at a fixed rate, and that rate will vary depending on the bank you are with. The amount of interest you earn will be directly proportion to how much money you have in the account.
With this account, you can pull your money out whenever you need it. Most savings accounts require you wait a day or two before you empty your account, but with an easy access account, you can use your bank card to pull money from your account at an ATM. This is ideal for those who may need emergency funds.
Those who benefit the most from this type of account are people who are just going off to university. They can earn money in their account without having to do anything, but when they need emergency funds, they can simply take it from their account as necessary.