What Is The Right Bank Account For You?
A bank account is crucial for a lot of reasons and many businesses require you to have one if you want to work for them. They can be effective way of saving money and there are often a number of perks and benefits depending on the type of account you get. However, it is not always immediately obvious what is the right one for you so it is worth comparing the options available in order to choose something best suited for your needs.
The basics
There are a couple of basics that come with most accounts – a debit card, a cheque book, the ability to set up direct debits and standing orders and (depending on the provider) the ability to set up an overdraft facility (this doesn’t apply to accounts for anyone under the age of 18.)
Additional services
Sometimes an account may come with additional services – these can include travel insurance, breakdown cover or the access to savings rates. In some cases, this will be included in the account but in other cases it may require an additional monthly payment (this should be explained to you before you sign up for the account).
Does the account pay interest?
When comparing accounts check for the AER (Annual Equivalent Rate) to see how much interest is paid on savings. It is also important to check in case you have to pay a minimum amount in order to get the higher interest rate.
Of course, if you have to use an overdraft the interest is then something you need to look at in terms of how much that will cost to use. You can pre-arrange an amount for a monthly fee but you need to look at how much that is and how much it will cost over the course of a year as what may initially look like a small amount can build up over that time so it is important to make sure you are getting the best value from it.
Look up reviews
There are a lot of different sources to help you compare the options available to you i.e. comparison sites can be a good way to get an overview, however it is also worth looking at reviews from customers who have used these accounts in the past as well (look for at least two or three sources to get a reasonably balanced overview and ideally read reviews with both positive and negative points as they are likely to be more balanced).
When you have selected an account this is not the end of it and you should always be looking at what is available to you. Switching is now easier than it used to be and you should always check carefully to see whether or not you could get a better deal elsewhere.
If you would like to know more about how to choose a bank account or want to discuss your financial situation in more detail with an experienced adviser please contact Larcomes Financial Services today and we will be happy to go over this with you to help find the best account to suit your particular needs.