Week 11 – How To Choose The Right Bank Account To Help You Manage Your Money
Generally people use a Current Account as their first point of call to access their wages or money. A Current Account allows you to pay bills by Direct Debit or Standing Order and it gives you access to an overdraft. This type of account allows you to pay for things with a debit card and withdraw money from cashpoint machines.
A Packaged Account is a Current Account that includes additional features, at an additional fee. The extras include features such as car breakdown cover, travel or mobile phone insurance and extra services.
Fee-Free Basic Bank Account
If you are unable to open a Standard Current Account it may be worth checking if you can access a Free-Free Basic Bank Account. It does not have an overdraft feature but it does allow you to pay bills by Direct Debit or Standing Order and receive payments.
These accounts are designed to help you budget because their features allow you to divide your money into different money ‘pots’, ‘envelopes’ or ‘jars’. You decide how you want to organise your money e.g. money for fuel in one pot and personal spending money in another.
I hope this helps,
This post is a part of a #weeklywins series hosted by @Lottiebudgets and @CharlotteMusha (Follow us on Instagram) For more tips visit CharlotteMusha.co.uk.