5 Solid Tips on How To Choose the Right Bank Account

Congratulations! You’re one step closer to financial stability with your decision to open a bank account. However, you might be confused with the different types of accounts to choose from. To help you, here are 7 tips to aid you in finding the right bank account for you.

1.Pick the right account that matches your needs.

There are several types of accounts to choose from, some of which include: current accounts, packaged accounts, fee-free basic bank accounts, and jam jar accounts. Each of them has its own pros and cons.

If you’re looking for a bank account for your day-to-day financial errands, you can try opening a current account. You can use it to pay bills or other expenses like online classes and utilities like electricity.

For extra features like insurance or insurance covers, investments, and preferential interest rates, you can check out packaged accounts.

If your credit score is low, you can consider opening a fee-free basic bank account that allows you to pay bills by direct debit and receive your salary and other payments. It can also help you raise your credit score.

Lastly, you can consider jam jar accounts if you prioritize saving. Basically, this type of account puts your money into different “jars” to essentially push you to save money. The only downside is that they charge a monthly fee. However, you can have your credit union or housing association pay these fees for you. 

2.Compare account charges and features

Fees and charges vary from bank to bank. You need to keep an eye on things like interest rates on credit balances and incentives like interest or cash incentives.

If you’re opening a credit card account to increase your credit score, make sure to check the bank’s annual fee on credit cards and their interest rates and penalty fees. This also keeps you from exceeding your credit card limit.

Often, banks offer promos to increase their customers. If you chance upon it while applying, check if they offer a higher interest for your savings during a limited amount of time or if they’re offering cash incentives and discounted annual fees.

3.Review on their customer service reputation

In opening an account, you will be starting a long and important relationship. Check how the bank lets you access their services and your account, and check which ways work for you the best.

Some of the ways banks let you access their services include:

– Telephone banking

– Mobile banking

– ATM branches and,

– Branch service

4.Use the internet to your advantage

The internet is more than just for social media and online classes. It’s an easily accessible vault of information that can help you compare bank account fees and charges automatically.

Some of these websites include:

  1. Go Compare
  2. Moneyfacts
  3. Money Saving Expert
  4. Which?

You can also check out blogs and reviews of real people to help you decide on which banks you’d want to pursue opening an account with.

5.Examine digital features

Speaking of the internet, everything’s online nowadays – including banking.

Before opening your bank account, review your banks’ mobile and online channels. It’s important to look beyond their interface and go deep into their security features. After all, it’s your finances you’re working with.

Add this to the factors you need to consider before opening your bank account.

With these tips, you can choose the right bank account and bank partner for your financial health. Don’t forget to compare and contrast their features and charges to get the best and most compatible one for you and your lifestyle.

Based on Materials from Money Advice Service

Photo Credits:


Eurobase FulFillment/Flickr

Mike Lawrence/flickr