Bank and Building Society Accounts

These accounts are a low-risk method of managing your money. From current accounts that let you efficiently manage your daily transactions to low-risk savings accounts, these types of account are long-established and safe option for managing your money.

Savings Account
Generally reserved for storing cash you do not need to access quickly, Savings Accounts will offer you a higher interest rate for your money. It is considered low-risk, and you will always get back at least the same amount that you opened the account with.

Terms and conditions will vary from bank to bank, but in general you are limited to the amount you can withdraw in any given period, and for some accounts there may be a notice-period to prior to receiving your cash. There is usually no overdraft feature, nor is there any system for charging bills to the account. The option to withdraw cash from an automated teller machine is usually available.

You will be required to prove your identity (by law, as part of measures against money laundering) in order to open a Savings Account.

Current Account
This provides account-holders with a way to efficiently manage their daily financial transactions. It gives you the option to pay bills automatically (direct debit), receive cash (such as a salary), and pay for things and services without cash (through a cheque).

Current Accounts are deposit-based, so like Savings Accounts you always get back at least the same amount you put in. You could allow interest to accrue but that is usually not the reason why this type of account is opened in the first place. Rather, they are to help people manage their transactions more easily. Usually Current Accounts have very low rates of interest. Some accounts offer an overdraft allowance that charges a fee for any money borrowed from it. The fee is usually a percentage of the amount borrowed.

Just like a Savings Account, you will be required to prove your identity to open a Current Account, with the overdraft allowance depending on the bank’s discretion and your financial situation or credit rating.

Different banks offer differing interest rates, fees and penalties. Keep in mind while shopping around, that the terms and conditions of your account may change. Interest rates will depend on changes to the base rates.

Offset Account
Depending on your situation, an Offset Account can be a smart way to make your money work harder for you. This will first require that you have your mortgage and current account with the same company.