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Bank Accounts

A bank account is a symbol of the relationship between an individual or organization and a bank, as it represents for all the financial transactions between the two. To keep a track of these transactions, banks award a positive or ‘credit’ balance and negative or ‘debit’ balance to customers. This indicates the amount that the bank owes to the customer or the amount the customer owes to the bank. One can choose a suitable bank account after considering how fast and easy the access to money will be.

Need for a Bank Account
Most individual’s income such as state benefits, tax credits, student loans, maintenance allowance, wages and pensions is now paid direct into a bank account, therefore, not to have one can prove to be an inconvenience. A bank account not only keeps one’s money safe, it also facilitates many transactions through services such as:
• Payment of bills or business payments.
• Receiving benefits, wages or payments.
• Tracking one’s funds and keeping finances in order.
• Earning interest on numerous investments.
• Getting a mortgage.

Types of Bank Accounts
Listed below are the major types of bank accounts:

Savings accounts
These aims at saving the liquid assets of customers, keeping aside the monetary returns which they earn. These accounts are offered by commercial banks, credit unions, mutual saving banks, building societies and savings and loan associations.

Time Deposits
Time deposits are cash deposits that cannot be withdrawn for a certain period of time. The longer the time period of the deposit, the greater the interest rate will be.

Joint accounts
These accounts are shared by two or more individuals. All members have the authority to conduct any transaction via these accounts.

Worldwide bank accounts
These are becoming increasingly popular as they allow account holders to conduct transactions in various listed countries across the world. Those making frequent trips for business purposes find worldwide bank accounts highly suitable.

Transactional accounts or current accounts
The chief purpose of such accounts is frequent access to money. A customer can make unlimited withdrawals or deposits of any amount of money, subject to the availability of capital.

Numbered bank accounts
These types of accounts are offered by Swiss banks for complete privacy and confidentiality. Instead of customers’ names, accounts are recognized by numbers.