With so many options out there in the market, how can we find the right type of bank account that will fit our financial needs? That’s the question we will answer as we discuss the things we need to know for our future investment.
Finding the right bank and the right type of Account can be daunting at times, especially if we see our bank officers present us with tons of options. Don’t fret if we see ourselves in this situation, and we will provide all the things that you need.
Type of Accounts
- Current Accounts
These are the most common accounts presented to us by our bank officers. It is there to help us manage our day-to-day financial needs. Current accounts allow us to pay our bills using Direct Debit. It also works as part of automated payments such as our salaries and benefits, including our loans.
In most cases, banks also allow our current accounts to have direct access to an overdraft. Most banks nowadays use their bank applications where we can monitor the flow of our money as well as send payments to others.
- Packaged Accounts
A packaged account is another form of current accounts. However, it is packed in exchange for a particular cost. Most banks offer this service and grant us special offers, such as lower interest rates in our overdrafts.
There’s also insurance coverage features that can be added on top, or sometimes, included already in the package. Aside from that, special offers are periodically given away to their loyal patrons. So if we have packaged accounts, we should look out for these attractive deals.
- Fee-Free Basic Bank Accounts
Just like the word implies, it is one of the most basic types of accounts offered in our banks. In case we badly need to open a standard account but can’t grant access to one because of our bad credit report, this is the best option for us.
Just like current accounts, fee-free basic accounts can directly receive any automatic payments such as salaries and other benefits.
- Jam-Jar Accounts or Budgeting Accounts
Most kids back in the days had habits of saving up money in jam jars, which often has labels on it. Jam-jar accounts apply the same idea and allocate our investments to different “jars” that represent the bills that we wanted to settle using Direct Debit.
This type of accounts is specifically made for strict budgeting. The downside of having this kind of Account is the associated fee with the service.
- Student’s and Graduate’s Account
Banks do have financial advisors and they mostly agree that students and new graduates can be huge clients someday. That’s why most banks put up programs specifically made for students and graduates.
This program involves an interest-free overdraft that can go up to a certain amount that both parties agreed upon. However, we have to take into consideration that not all banks offer the same deal as the other so we might need to shop around the market and look for the best available deal that will fit our needs.
- Bank Accounts for People with Convictions
Being in prison is a tough pill to swallow and it can affect many aspects of our lives, especially our finances. However, lawyers can help us set up a basic bank account even if we are behind bars.
We have to keep in mind that most banks don’t have any access to our criminal records, but it worth mentioning that they have their system that can detect if the person applying for an account has past records of fraud or any related illegal actions. This can often lead to a denial of having a bank account open while we are behind bars.
Banks can also reject our applications if they zip out a record from us that we have an outstanding record of being an undischarged bankrupt.