How To Choose A Bank Account in Spending
Not all bank accounts are the same. Looking around you’ll see that there are different types of accounts and different places you can open an account.
Which account is right for me?
The main question you need to ask is, what do you want to use your bank account for
Basic accounts are the simplest type of bank account. They are specially designed for people who don't want or can't have an overdraft. They are a simple account that will allow you to store and pay out your money.
You may get a debit card with a basic account but there is no overdraft facility. You must be 16 to open this account, although some banks may have to be 18.
The most common of all accounts is probably the Current Account. Many people have a current account for their everyday spending, as you can easily pay your money in and take it out again. You will be able to get an overdraft with a current account, as well as set up Direct Debits and standing orders to pay your bills.
You will usually get a cheque book, a cash or debit card, bank statements, and online and telephone banking with a current account. For more information on current accounts visit the Money Advice Service website.
If you are a student, you will be able to get a student account. This is similar to a current account, in that you can easily pay money in and out but there are additional benefits, including an overdraft and discounted travel.
A savings account is often the first account you will ever open. The account allows you to keep your money in a safe place while it earns a small amount of interest each month. Banks offer a wide range of savings accounts. Savings accounts normally offer a higher rate of interest than a current account.
Some savings accounts will need you to have a minimum amount of money before you can open the account, other savings accounts will require you to keep your money in the account for a fixed period.
Credit Unions offer a number of easily accessible uncomplicated savings accounts. Save and watch your cash-flow grow! Use your Young Scot card and sign-up to the first Scottish-wide credit union for young people, brought to you by Scotwest Credit Union.
For more information about choosing a bank account, check out the Money Advice Service video below.