In today’s times, most people have a bank account. It is a convenient and modern solution, although it incurs certain costs associated with account maintenance. To open an account, we need to familiarize ourselves with this matter so as not to experience any unpleasant surprises later on. When opening an account, we should know the types of bank accounts available in order to choose the most advantageous one for us.

What types of bank accounts are currently offered?

First of all, to know which type of account will be most advantageous for us, we should go to the bank and ask a specialist. Some names may not tell us anything, but it will be thoroughly explained to us at the branch. There aren’t as many types of accounts as it may seem. Each account differs in its functions, purpose, and benefits. To make the right choice, we also need to understand the differences.

• The most common type is a personal account, which is used for daily banking operations such as withdrawals, deposits, transfers, and card payments. It is the basic bank account for individuals, and most people have this type of account.
• Another type of bank account is a savings account. It is a combination of a personal account and a deposit account. We should know that such an account has a higher interest rate than a personal account, but unlike a deposit account, we have constant access to our own money. In practice, this means that we can withdraw it without the risk of losing the interest.
• Different life situations, such as working abroad, make banking matters more complicated. Currency accounts are an ideal solution for this. They are useful when repaying a loan in a foreign currency or working in a foreign country and wanting to transfer money back home at a low cost. Such an account handles currencies from various parts of the world.

What type of bank account is suitable for young people?

Banks also create accounts that are designed for specific groups of people, such as young individuals. They do not yet have full financial capabilities, so these accounts differ slightly, for example, from the regular personal account. There is a division between youth accounts and student accounts.

A youth account can be opened by a person who is at least 13 years old, but the consent of at least one parent is required. Such an account is mainly limited to making transfers, card payments, and using ATMs. Often, a daily limit is set in such cases. Importantly, it is not possible to use credit or make investments with this type of account.

A student account, similar to a youth account, does not incur high fees. However, there are no limitations, and a person using such an account can, for example, take out a loan.

 

Tim Carney