Bank Account

Most banks now offer at least three types of bank account. Even basic accounts offer a cashcard; premium accounts have a whole raft of services bolted on. Very few current accounts remain just a place to put your cash, so tot up the benefits and shop around before deciding where to put your salary each month. A bank account is no longer just a place to put your money so that it�s safe and you can write cheques. For starters, current accounts can offer interest- but rates vary wildly. The good internet banks can offer up to 30 times as much interest as the high street banks! But there are plenty of other things you should be aware of. Do you get a cashcard, a cheque guarantee card, a switch card (or all three in one card) with your bank account? Ask what charges are like- for going overdrawn or for simple services like getting an extra statement sent out. Overdraft fees vary from 8% to 34%! And can you get an overdraft at all- some banks offer �500 with no questions asked; others will expect you to fight tooth and nail. A new breed on the scene is the premium bank account. These charge a modest fee (�5 to �10 per month) and offer a bunch of extras, usually cheaper borrowing, travel insurance, roadside rescue and shopping. If you use these services, maybe that�s a good economy. And do you have easy access to your bank and more importantly your manager? NatWest have stopped using call centres and offer you direct access to your branch- in general that�s a good thing. Finally watch for special services that might be a bonus. Abbey National for example offers �sweeping�- automatically putting spare money each month into a savings account, offering you better interest. Many internet banks also allow you to offset interest on your current account against a mortgage. So tot up the benefits- your bank account should include extras and benefits, it�s no longer the same as a piggy bank or a box under your bed! Source: http://www.bank.org.uk/bank-account/

Banking

How banking has changed in the past 20 years in your favour!

In your lifetime, you will use plenty of banking products that were previously not available to the ordinary person. Most of us have credit cards, loans, investments and insurances. This has made banking a much more competitive industry, and you have the right to expect great service for your custom.

The face of banking in the UK has changed immeasurably in the past two decades. While we were busy living our lives, the financial services industry consolidated almost overnight, with most small banks being swallowed up by large ones- some fifteen very large global companies take care of the vast majority of daily banking.

But at the same time, lots of exciting new players have appeared. Small banks and lenders provide services for people who otherwise would never have access to credit; or even sometimes a bank account. New technology (cash machines, CHAPS clearance, credit scoring) mean we can get to our money faster- and do more with it.

More of us are investing than ever before- and with government support (remember PEPs and TESSAs, or today�s ISAs) plenty of us are making money out of our savings- even if it�s only a few pennies for a few days.

Banking is now a highly competitive industry whereas twenty years ago, you were grateful that your bank manager even gave you the time of day. Since we are now sophisticated financial consumers, aware of our banking options, and likely to demand several products in our lifetimes (not just a bank account and a mortgage), we owe it to ourselves to force our bank managers to justify their existence. K

eep your bank manager on his toes!

source:
http://www.bank.org.uk/banking/

About Bank

The high street isn�t necessarily the best place to put your money Finding the right bank means working out which bank gives you a good return on your business- whether that be interest on your savings or a cheap loan rate if you�re borrowing. It also means the bank which provides the full range of services you�ll need, and which rewards you for your loyalty in using them. If you ask your parents, they�ll tell you that a bank is a building on the high street that closes at 3.30pm and claims to look after your money. These days that�s no longer necessarily the case. Of course you can still use a high street bank- and there are good reasons to do so, but you need to consider two other types of bank as well. If you�re tech savvy (and you�re reading this after all) consider internet banking. Many internet banks (Cahoot, Smile) offer proper current accounts, and because their costs are lower they can give you a better rate of interest on your money. If you don�t like internet banking, perhaps try First Direct bank. It offers arguably the best telephone banking service, and some excellent products too. One thing to bear in mind though. Not all internet banks do offer current accounts. And some that do may not offer the breadth of other services your high street bank can. You see, everyone needs to make money somewhere. Since day-to-day banking is usually free of charge, some internet banks won�t do it. Your high street bank can offer you free banking because they�ll make a profit in other places- investments or loans for example. So don�t just consider the interest rate on your current balance- ask yourself what overall services you need (Loans? A cashcard? Instant access to money?) before deciding which bank to plump for. Over half of us never bother changing bank accounts, so you�re already taking a step in the right direction! Source: http://www.bank.org.uk/banking/