Types of UK Bank Accounts
This section provides information on types of bank accounts: basic, current and savings.
There are three general types of bank accounts, a basic bank account, a current account and a savings account.
A basic account is a good place to keep your money for general use. You can have your work wages, benefits or tax credits and pension paid into a basic account. With a basic account you get a cash card that you can use at cash machines, and some basic accounts offer a debit card to withdraw money. You do not get a cheque book with a basic bank account and you cannot withdraw more money than is in your basic bank account.
A current account is another good place to keep your money for general use, but a current account has more features than a basic account. When you open a current bank account you will get a cheque book and a debit card, allowing you to withdraw cash from cash machines and pay for items in stores.
***When withdrawing money or checking your balance from a cach machine, keep your pin number safe by checking that no one is standing close to you or looking over your shoulder.
You may also be able to have an overdraft option, which allows you to withdraw more money than is in your current account up to a certain amount. But you will have to repay this amount and may get charged interest. Some bank accounts have a free overdraft built in. If your bank account does not have an overdraft facility, you will have to ask your bank for an authorised overdraft facility.
A savings account is a good place to save your money. Savings accounts also give you interest on your money. Some savings accounts may provide a card to enable you to access your money at a cash machine.
Visit the websites below for more information on types of bank accounts and banking in the UK.