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Bank Accounts

15th November 2023

By Ben Walker

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Bank Accounts

There are loads of different types of bank accounts for you to choose from to keep your money in. But which one would work best for you depends on what you want to do with your money. When picking which bank account you want to open, make sure your money is working for you.

Basic Accounts

These accounts give you access to essential features needed for everyday banking. Usually, these accounts would be offered without requiring any monthly fee. This will normally include a debit card with access to online and mobile banking. This can be perfect for those who don’t qualify for other types of accounts.

Current Accounts

A Current Account is a standard account that offers access to a wide range of banking services. This is a common option as it provides all the features needed for day to day banking, while not having a monthly fee.

You can attempt to open a current account with most providers. However, approval is subject to various checks, such as a credit check, assessment of your personal circumstances and more. Additionally, other factors, such as age, may play a part in whether you get this account or not.

Packaged Accounts

This account is usually a current account which comes with extra benefits in exchange for a monthly fee.

For example, you could be offered a current account that also comes with breakdown cover, travel insurance, mobile phone insurance and maybe more. A packaged account could cost from £10 a month, and depending on the benefits involved could cost substantially more. When thinking about going for a packaged account, make sure that you read the fine print to know exactly what you’re getting. It may be cheaper for you to get a standard current account and pay for the extras separately, if you need them at all.

As per the standard current accounts, most packaged accounts require credit checks, assessment of your personal circumstances and more for approval.

Savings Accounts

These accounts are different from conventional current accounts as you pay money into, and then earn interest on the balance. There are a few types of savings account. These include easy access accounts, regular savings accounts, notice accounts, ISAs and fixed rate bonds, as well as more. The most common of these are notice accounts, fixed rate bonds, and easy access accounts.

Notice Accounts require a set time period, or notice period, to withdraw your money. However, they offer competitive variable rates, and you are able to withdraw money, so they are flexible.

Fixed rate bonds offer competitive fixed rates, which means the interest rate will stay the same over the full term. However, you will be unable to withdraw your money until the account matures. This means you’ll know exactly how much money you will make by the end of the term.

Easy access accounts typically offer a reasonably competitive variable interest rate. They are also the most flexible type of account, as you are able to deposit or withdraw money at your convenience.

Student and Graduate Bank Accounts

Each Student bank account offers different benefits, but fundamentally they are the same as a current account. Usually the main difference is the overdraft facility. For example, some banks may offer a student account with an interest-free overdraft of up to £3,000. There may also be other benefits on offer, such as free bus passes, gift vouchers and various other benefits. One thing to be cautious of is that when you finish your course, these accounts generally change to a regular current account. If this happens, you may not have an interest free overdraft, so you should make sure you pay off your overdraft before this happens. If you don’t, you could end up paying a large amount of interest.

Joint Accounts

A Joint Bank Account is when two people share the same account. This can be a good way to manage finances with a partner. When opening a joint account, most account types can be converted. This includes current accounts, saving accounts or a packaged account. 

When opening a joint account, it’s important to remember that both parties will have access to the money, and you are agreeing for your financial records to be linked together.

How do you open a bank account?

When you want to open a bank account, you normally will need two separate documents. One is needed to prove your identity, such as your passport or driving licence. The second is something to prove your address. This can be a recent utility bill, current tax bill or mortgage statement. 

Once you have these documents it is then fairly straightforward to open a bank account. It can either be done online or in your local branch.

But you must check the criteria for the account you are trying to open beforehand. This is because each bank has different criteria, and the same goes for each type of account. You don’t want to be rejected, but if you are, it could be because:

  • You are too young
  • Your income isn’t high enough
  • Insufficient ID or proof of address
  • A bad credit history

So long as you are thorough with your checks, and make sure you fill all the criteria, you should be okay to go ahead and open your own bank account.

Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.

More than 50% of borrowers receive offers better than our representative examples

The %APR rate you will be offered is dependent on your personal circumstances.

Mortgages and Remortgages

Representative example

Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66

Secured / Second Charge Loans

Representative example

Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20

Unsecured Loans

Representative example

Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.



Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774
Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

Authorised and regulated by the Financial Conduct Authority – Number 681423
The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages


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