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What to consider when opening a bank account
Having a bank account makes it easy to manage your money. You have a secure place for your salary or other credits to be paid in and it's a convenient way to pay bills. Providing you have the funds you can have instant access to cash when you need it. With a bank account it’s easy to keep track of your finances.
There are different kinds of bank accounts to choose from, all with different features and benefits. As part of our commitment to helping you make an informed decision, here are things to consider when choosing a bank account.
- Does the account work for me?
- What kind of features and benefits can I expect?
- What commitment do I need to make?
- What else should I think about before I commit?
Spend some time considering what you want from your bank account. Make sure that the level of service it offers meets your needs. Check that you can access the account in a way that suits you. Compare different accounts to find the one that works for you and makes your money work for you too.
For example, if your account is regularly in credit, look for an account that pays a high rate of credit interest. If you use your overdraft often, look for an account with a low rate of debit interest.
What kind of features and benefits can I expect?
This varies from account to account. You could choose a simple account where you just pay in and draw out money, for example, our Easycash account. Or you might prefer an account with lots of added benefits and discounts such as our Ultimate Reward Current Account - this includes benefits such as Worldwide Multi-trip Family Travel Insurance and RAC Breakdown Cover for only £10 a month. Most of our accounts pay interest when you keep them in credit. This can range from 0.1% AER† to 6.17% AER*, depending on the type of account and how much you pay in.
What commitment do I need to make?
Firstly, you’ll need to provide proof of who you are and where you live.
Check your statements, get mini-statements at cash machines or register for our online banking or telephone banking services which will allow you to track your account at any time.
Some bank accounts require you to commit to paying in a minimum amount each month, such as £1,000, to get the best from them. Other accounts may offer a range of extra features but require you to pay a monthly fee in order to qualify for them.
What else should I think about before I commit?
Here are some things to consider. If your bank account has an overdraft facility you’ll usually have to pay interest on any amount you're overdrawn. The rate of interest you’ll pay will depend on whether the overdraft was pre-arranged or not and the type of bank account you hold. It can vary from 13.35% EAR** variable to typical 18.9% EAR variable for an arranged overdraft (with the exception of the Student Current Account which offers an interest-free overdraft limit up to £2,750 and 7.2% EAR variable on any amount over this, subject to conditions) and from 24.2% EAR variable to 29.8% EAR variable for an unarranged overdraft. Some accounts will charge you for special services like issuing a banker's draft or stopping a cheque. You’ll also need to ensure that there’s enough money in your account to cover Direct Debit payments so you avoid any unnecessary charges. You can find details on the interest rates and charges page.
Some people find that a savings account suits their needs better than a bank account. Savings accounts usually make your money work even harder, earning you higher rates of interest, and in some cases we can offer tax-free options.
Next Steps
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Find out more about our range of bank accounts. |
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Alternatively, if you'd like to discuss our bank accounts and your finances in more detail, why not have a face-to-face review in branch? Find out more about our Customer Review service. |
† AER stands for Annual Equivalent Rate and illustrates what the interest would be if interest was paid and added each year.
* Credit interest rates are variable.
** EAR is the Equivalent Annual Rate taking into account the interest rate and how often interest is paid, but excludes any fees or charges.
