Which Bank Account For General Money Management? - A "SWOFTIES" Guide to Choosing a Bank Account
Over 100,000 SWOFTIES' (Single Women over Fifty) in the UK have never opened a bank account before, according to research undertaken by the Department of Work and Pensions.
This happens when they find themselves alone after Divorce or bereavement and suddenly have to deal with financial affairs and paperwork that their partners took care of when they were married or in a relationship.
One of the first things to do if you do not have a bank account is choose a bank.
Banks are very competitive and are always coming up with new incentives to lure you to bank with them.
I suggest you use one of the internet sites that compares different banks to save time researching.
You can also talk with friends and relatives about which bank they use and whether they are happy with them.
Most banks offer an Internet banking account option and for many people this offers a more convenient way to bank.
Which bank account? There are two types of bank account for managing your everyday money: a Basic bank account and a Current account.
You can have your wages, pension, benefits or other income paid into a Basic bank account.
You are able to pay in cheques free of charge and set up 'direct debits' which pay regular bills automatically from your account.
You get a cash card and can withdraw cash so long as you have enough money in your account.
This is the best option if you are worried about becoming overdrawn.
A Current account has more features than the Basic account which include - · Cheque book · Cheque guarantee card (this acts as a guarantee which makes your cheques more widely acceptable) · Debit card (to make payments directly from your account) · Direct debit (which pay regular bills automatically from your account) · Standing orders (for regular set payments from your account) · BACS (bankers automated clearing service)- the facility to accept payments directly into your account or for you to make one-off payments to someone from your account · Overdraft facility - the bank may allow you to go overdrawn up to a certain amount.
However you need to arrange this in advance or charges will be applied.
Having the right personal bank account for general money management is important when you are taking control of planning personal finances.
Remember you are not alone as there is always help available and once you have taken this first step you will feel feel more confident and ready to open your bank account.
This happens when they find themselves alone after Divorce or bereavement and suddenly have to deal with financial affairs and paperwork that their partners took care of when they were married or in a relationship.
One of the first things to do if you do not have a bank account is choose a bank.
Banks are very competitive and are always coming up with new incentives to lure you to bank with them.
I suggest you use one of the internet sites that compares different banks to save time researching.
You can also talk with friends and relatives about which bank they use and whether they are happy with them.
Most banks offer an Internet banking account option and for many people this offers a more convenient way to bank.
Which bank account? There are two types of bank account for managing your everyday money: a Basic bank account and a Current account.
You can have your wages, pension, benefits or other income paid into a Basic bank account.
You are able to pay in cheques free of charge and set up 'direct debits' which pay regular bills automatically from your account.
You get a cash card and can withdraw cash so long as you have enough money in your account.
This is the best option if you are worried about becoming overdrawn.
A Current account has more features than the Basic account which include - · Cheque book · Cheque guarantee card (this acts as a guarantee which makes your cheques more widely acceptable) · Debit card (to make payments directly from your account) · Direct debit (which pay regular bills automatically from your account) · Standing orders (for regular set payments from your account) · BACS (bankers automated clearing service)- the facility to accept payments directly into your account or for you to make one-off payments to someone from your account · Overdraft facility - the bank may allow you to go overdrawn up to a certain amount.
However you need to arrange this in advance or charges will be applied.
Having the right personal bank account for general money management is important when you are taking control of planning personal finances.
Remember you are not alone as there is always help available and once you have taken this first step you will feel feel more confident and ready to open your bank account.