How can a bank account help me to manage money?

A bank account can help you to manage your money. It also saves you from having to carry cash with you all the time.

There are different types of bank accounts:

Basic bank account

• You can have your salary and /or any benefits paid into the account.
• You can take money out at cash machines with a cash card.
• Pay your bills by Direct Debit.
• Some banks let you have a debit card to pay for your shopping.
• You don't need to pass a credit check to open a basic account. So long as you have money in the account to pay out any direct debits, you won't get charged.

With a basic bank account you:

• Don’t get a cheque book
• Don’t get an overdraft facility

Current account

A current account can be used for day-to-day things like paying in salary or benefits, paying bills and taking money out.

• You can have your salary and/or any benefits paid into the account.
• You can take money out at cash machines with a cash card.
• Pay your bills by Direct Debit.
• A debit card to use in shops.
• Can have an overdraft facility.
• You may get a chequebook if you are given a cheque guarantee card.

Credit Union account

Credit Unions are run by the local community, and they can offer low-interest loans and savings accounts.

Some Credit Unions also offer bank accounts. Find your local Credit Union.

You can also learn more about opening and running a bank account on Money Helper