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Banking

Bank Accounts: Your Financial Freedom Awaits

Without the modern bank account, we would be literally crippled in terms of our finances. These instruments have now become an essential part of our existence in these modern times. Whether you are opening an account for the first time or you are hoping to change providers, it is important to know the choices that you have as well as some of the top providers in the business today. Let's see what is in store.

The Types of Bank Accounts

Bank accounts can be broken down into two general categories. These are:

  • Checking accounts (known as current accounts)
  • Savings account

Checking accounts are by far the most popular type in existence. These are generally used to pay off your day-to-day expenses. They can also be referred to as current accounts and on occasion, debit accounts. You can withdraw money from a cash point, pay bills online and automatically debit your account for expenses such as a mobile phone or electricity bill

Savings accounts are another common option. However, there are two main differences between this choice and a current account. First, the interest rates earned on a per annum basis are typically higher. This will allow you to accrue more money over time. Secondly, you may not be able to immediately withdraw money. If you do, you could be charged a nominal fee. The minimum balance within these accounts is also likely to be higher when compared to a checking account.

Choosing the Right Provider

There are several tips and tricks which can help you to select the correct institution. First, how accessible are they and do they offer multiple locations in terms of physical banks? Are you able to perform online transactions and if so, are there any fees attached? What is their reputation and what are other saying about the services that they provide? What are their overdraft fees and can you modify your account as you see fit? It is important to address all of these questions.