Bank Accounts
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.
Opening a bank account has many advantages;
- it is safe and secure, as benefits, wages etc. can be paid straight into an account;
- it may save you money by paying bills by direct debit;
- you can cash a cheque without incurring a charge as at a cheque cashing service;
- it is convenient as you decide the amount of money you wish to withdraw and when, and you can get your money from different places;
- it helps build up a banking history;
- some accounts can earn you interest on the money you have in the account.
There are 3 main types of bank account. 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.
- 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.
- Savings (or deposit) account - for putting away money that you'd like to save, say for furniture, a holiday or emergencies.
You can find more information about running a bank account on the Money Advice Service site www.moneyadviceservice.org.uk/
Credit Unions
If you don't want to open a bank account you might consider opening a credit union account. See the page What are Credit Unions?
Web Links
Stockton Council is not responsible for the content of external websites.
