What are the different types of bank accounts available?

With different types of bank accounts available offering different services, it's important to ensure that you have the one that best suits your needs. The main account types are:

Basic bank accounts

Offer fewer services than a current account but may suit people who struggle with managing their money. You are able to have your wages, benefits or cash paid into the account and pay bills by direct debit or standing order, but will not have access to an overdraft. You will be given a debit card with which you can pay for items or use to get 'cashback'. On most basic accounts the card itself will not have the contactless feature, but you are able to still register it to either Apple or Google Pay.

Current accounts

Offer you more services than a basic bank account. These include direct debits and standing orders for bill payments,contactless payment and an overdraft to an agreed limit. Many current accounts now offer rewards such as cash back (when you spend at selected retailers), discounts on goods and services and perks such as travel insurance or rail cards as part of your account package. Some banks also offer up to £150 for switching your banking account to them or introducing a friend.

Savings accounts

There are a number of different types of savings accounts including ISAs, fixed rates and easy access accounts. These offer different interest rates, different arrangements for how long you have to wait to access your money and how much money you need in the account to keep it open.

Deciding which account suits you

If you don't have an account and are thinking of opening one then shop around. Talk to different banks about what you would like to use your account for, they'll be able to advise you on what services they offer. If you'd like independent advice about different types of bank and building society accounts then contact Money Helper: