Anyone can apply for a bank account but some people might find it more difficult than others. If you are under 15 you will not be allowed to open a chequeing account but you will be encouraged to open a savings account instead. Bank accounts are useful for lots of reasons like paying bills and keeping your money safe.
Choosing a Bank Account
There are lots of different bank accounts available and the best option is to shop around as different banks offer different services, for example, internet banking, telephone banking, cheque books, cash/debt card and different charges. Here is a rough guide to the basics;
Basic Account - This is a good bank account for first time users. This bank account allows you to pay money into the account, get cash from the ATM and pay regular bills. You can’t overdraw so there is no risk of getting into debt.
Current Account - This is the most common back account. This account offers you everything a basic account does and more. Features include a debit card, a cheque book, a cheque guarantee card and the option of an overdraft.
Saving Account - This is designed to help you save, therefore you get a higher level of interest than in other types of accounts. There is no debit card, cheque book and you can’t pay bills from this account. If you want to withdraw money you usually have to give a period of notice depending on what sort of savings account you have and you may be limited in the amount of times you can do this.
Opening A bank Account By law you have to provide the bank with two forms of ID, one to prove your identity and one with your address on it. You cannot use the same document for both types.
Common types of ID include:
* Gas, electricity, water or phone bill (not a mobile phone bill though) All bills usually need to be at most 3 months old
* The current years Council tax bill
* Driving licence
* Current passport
* Pension or other social security book
* Medical card
* Inland Revenue documentation
* Insurance certificate
Credit Union
The credit union offers a similar service as a bank but it is owned by its members. These services include, depositing money, borrowing, saving and loans (usually with very little or no interest!!!). People usually join a credit union through a family member or friend who is already a member of a credit union, and all the members are linked in some way, for example, the area they live.