In the most basic terms a bank account is a safe, secure and convenient place to store your money. But let’s face it – a bank account is so much more than just that. Having a bank account is very useful as it makes it easier for employers to make wage payments to you so you don’t have to take cash-in-hand (which, let’s face it, is on it’s way out along with cheques).
Most bank accounts come with a debit card so that you can withdraw money, make deposits, make purchases in shops and online, etc. In addition to this you can even pay bills directly from your bank account, either by setting up direct debits, online banking and writing cheques.
Whether you are looking for a secured loan, payday loan or even a credit card – almost all lenders will need you to have a bank account otherwise they won’t be able to grant you a loan. Unfortunately some people with poor credit scores can find it difficult to get a bank account, however, Creditwindow not only offers standard bank accounts but can also find one for people with poor credit.
What Bank Accounts Are Available?
Let’s take a quick look at some of the bank accounts available to consumers:
A Basic Bank Account
A basic bank account is essentially a regular account that you can have money paid into – such as wages or benefits. You can also pay cash and cheques in yourself as well as pay bills by setting up direct debits. You will also be issued with a cash card to use at ATM or “cash machines”. Many basic bank accounts may also give you a debit card to buy things online or over the counter, however, you will probably not be allowed to take out an overdraft on a plan such as this.
A Bank Current Account
A bank current account is slightly more sophisticated as you will always be granted a debit card so that you can shop online, from restaurants, retail outlets, etc. A cheque book and overdraft facility may also be given to you but the overdraft will be set at an agreed limit and you may face high interest rates if you go over that set limit. However, on the plus side, some current account have an interest rate attached to them so you could earn interest on your money while it’s in your account.
A Bank Savings Account
A bank savings account is simply an account to place money that you don’t want to spend straight-away – i.e. money you plan on saving for whatever reason. All bank savings accounts have an interest rate attached to them so that you can earn on the money that you’ve placed into the account. However, if you’re looking for a savings account that allows you quick access to your money you should note that the interest rate will probably be lower than a standard savings account.
The Costs Of Banking
In the vast majority of cases bank accounts are free to setup and maintain, however, there are some bank accounts that require a monthly administration fee. These bank accounts tend to be premium accounts that offer more services than a standard current account – such as high interest rates, insurance services, overdraft facilities, etc.
In some instances people with poor credit scores may only have a select number of bank account options open to them. Some of these banking options may also charge a small monthly administration fee to offer what a standard bank account would give to customers with good credit.
Have you got a poor credit score and struggling to find a bank account? Check out: