Should You Open A New Bank Account

Opening a new bank account is something that most of us won’t do very often, so knowing the best way to go about it can be a little confusing. With the various different kinds of account available it’s tricky to find the best one to suit you, but there are a few general rules of thumb to keep in mind when you’re opening an account.

Find Out About All The Fees

When you open your account, you’re agreeing to a contract with the bank that you’ve agreed and are willing to pay the various fees associated with the account. This can be as simple as a regular monthly fee for access to certain benefits, but it will likely also include charges for things like being in your overdraft or having a direct debit bounce.

When you’re in the bank, have the person opening your account clearly explain all the fees associated with the account. That way you can be aware of any potential problems in the future and avoid any unnecessary fees. Most high street banks will be able to do this when you’re opening a new bank account.

Double Check Everything

It should go without saying, but make sure you read the contract fully and double check all the information before you sign anything. This is particularly important if you’re opening an account online, as the simplicity of a digital signature means most people will simply click the box instead of reading through the contract.

Check that all your information is correct, especially your contact details. If there’s a problem with the account and the bank are sending information to the wrong address it could end up costing you a lot of money in fees.

Find the Right Kind of Account

There are many different kinds of bank account out there, from a basic bank account which simply offers you access to your money to easy access savings accounts and packaged account which offer various benefits for a monthly fee.

If you just need somewhere to have your salary paid and for your bills to come out, then you probably don’t need much more than a basic account. If you’re looking to grow your money or save on things like phone or travel insurance, then a higher interest account or a packaged account may be a better option for you.

Take Some TIme Over the Decision

If you were looking to take out a loan or a mortgage, chances are you’d spend a fair amount of time comparing the various rates available to make sure you’re getting the best possible deal. Why not give your current account the same care and attention?

You could end up saving money on account fees, growing your balance through regular interest payments and even cutting down your monthly outgoings by including perks like breakdown cover with your bank account. Researching the current deals available from the major banks is easier than ever thanks to the internet, so take a couple of hours to see if you can find a better way to do your day to day banking.