Bank Account | Academy of Training, Plymouth, Devon

Money made clear

What is a bank account?

Bank accounts help you to:

• pay your bills;
• receive money - such as your salary or benefits; and
• keep track of where your money is going.

Bank accounts can also earn you interest on the money you have in the account.

We cover the three main types of bank account below. You might have any of these at different stages of your life.

Basic bank account - for managing day-to-day money. It doesn't usually allow you to go overdrawn by more than £10, if at all. We outline the basics here but if you'd like more information see our Bas/c bank accounts printed guide. You can download it or order a free copy online - see Publications. Current account - also for managing your day-to-day money, but with more features than a basic bank account. There are special accounts for children and students. Some current accounts pay you interest if you are in credit, but a savings account will usually pay a higher rate. Savings (or deposit) account - for putting away money that you'd like to save, say for furniture, a holiday or emergencies. It often pays a higher rate of interest than current accounts, so your money grows quicker.

How much does a bank account cost?

You normally do not have to pay a fee for your bank account, as long as you don't spend more money than you have in the account (called going overdrawn).

If you have money in your account (called being in credit), you are not usually charged for any of the services provided by your account, but do double-check by reading the terms and conditions.

Remember also that convenience cash machines which are not run or owned by the bank (such as those inside small shops, on garage forecourts, at railway stations and in nightclubs) may charge you around £1.50 each time you withdraw money from them.