The Basics of Personal Accounts

2007-08-15T23:00:00Z

Most people today have at least one personal account. However, if you are new to the world of finance or if you've just finished your studies, this could be the right time to open an account of your own. Why? There are several benefits provided by having your own personal account. However, before you start leveraging any of these advantages, it is essential to understand the basics of personal accounts.

What are the different types of accounts?When it comes to personal accounts, there are three primary varieties to choose from. These include:

Basic account: A basic account is best if you’re a first time account user. It allows you to deposit money, withdraw cash via an ATM and even pay off all your bills. However, it does not allow any sort of overdraft, which makes it even better for first time users who might be tempted to withdraw more than they should.
Current account: A current account provides all the features of a basic account. However, in addition it also provides you with a cheque book and a cheque guarantee card. It also provides you with a debit card, through which you can make purchases in hundreds of stores and withdraw money from thousands of ATMs. Best of all, you can also ask for an overdraft facility via this account. However, it is to be noted that if you do overdraft without the bank’s permission, you might be refused cheques as well as direct debit facilities.
Savings account: A savings account is a type of personal account that provides a higher rate of interest, and therefore, this type of account helps you save more money. You do not receive a cheque book or a debit card, which means you cannot shop in stores with this account type. Some accounts require you to seek permission before making any withdrawals. Your bank may also place a maximum limit on the number of withdrawals you can make.

Internet Banking with a Personal Account

The internet has indeed made the world a smaller and more convenient place to live in. Today’s is a world of paperless transactions and instant transfers of money. It’s all been made possible because of the internet. With the advent of complex e-commerce solutions and sophisticated backend systems, online or internet banking has caught the world by storm. No matter where you are located, you can see funds getting transferred to any other part of the globe! Such is the power of internet banking. Once you have selected the type of personal account you wish to go for, you can opt for a suitable internet banking service to accompany it.

How to Choose the Best Internet Banking Service There are certain guidelines to keep in mind before you opt for internet banking. The rising amount of online fraudulent transactions can take a toll on your finances. That is why it is important to choose a bank that is legitimate. Here are some tips to help you choose a genuine bank:

Do Research: First of all, you need to ensure that the bank or financial institution is legitimate, even if it has no physical branches located in your city. To do this, one of the things you could do is to visit the ‘About Us’ section of the bank’s website. This section will serve to describe detailed information about the bank, such as when it was established, who its key shareholders are, the future growth prospects, etc. It will also mention the address of its official headquarters, as well as the extent of insurance coverage it has.
Beware of Fraudulent Sites: There are websites that try to imitate the name of another well known financial institution. These are fake sites, so be careful not to confuse an impostor bank with the real bank it's trying to mimic. Be sure to check the spelling of the bank name you have typed in before conducting any sort of financial transaction online through your personal account.
Different Names: Most banks will use different names for its online and traditional transactions. This does not mean that you are dealing with different personal accounts – it’s just that the same bank is offering its services in different modes.

If you don't have time to sift through hundreds of personal accounts from all kinds of different banks, let SimplyFinance do it for you. Take a minute to fill out this short form, and one of our representatives will contact you shorty to assist you in finding the best personal account for you and your particular financial goals and needs.

CLICK HERE TO OPEN A PERSONAL ACCOUNT TODAY!

Finding the Best Personal Account

2007-08-15T23:00:00Z

Once you have a good idea as to the specific type of personal account you wish to go for, it is time to shop around for the best personal account available in the market. Since every bank is different, you need to make a comparative analysis before deciding on an account.

Factors to Consider

With a vast plethora of banks just waiting to get your business, how should you choose which is the best one for you? More importantly, on which criteria do you judge these financial institutions? Here are some pointers to help you out on your quest to find the best personal account:

Interest rates: This is one of the most important factors you’ll need to consider. The rate of interest being offered will determine the amount of savings you will make.
Proximity: Even though this may sound unimportant, it is surprising how this factor can play such a crucial role. Check to see if the bank has branches that are close to your home, office or shopping area. You’ll be amazed at how important this will be once you start using the account.
Facilities offered: There are certain banks that will offer you free access to the cash machines that belong to other banks. This can be a great advantage, especially if you find yourself in an emergency when you might need cash on short notice. Some banks may also offer the facility to use post offices to pay your bills or withdraw cash. These can be important considerations in determining the best personal account of choice. Another important facility most banks provide these days is telephone banking. That is, using the phone to check on your current balance or for paying bills, etc.
Special needs: For physically handicapped people or for those with disabilities, many banks provide special facilities such as statements written in Braille and services to collect bill payments at your doorstep. If these types of services are important to you, be sure to check if your bank provides these services.

Documents You'll Need to Open an Account

Once you have made your choice about which personal account is the best personal account for you, you will need to complete certain formalities required by the bank. For starters, you will need to submit proof of identity, as well as proof of address. The same document cannot be used to verify both these details. Some of the commonly accepted documents include electric, phone or water bills, a copy of your current passport, driving license, your employee ID card, a medical card, any insurance certificate, etc.

Is There a Chance of Rejection?

There may be a chance that your application for opening a personal account is refused. There is no obligation on the part of the bank to open an account for you. There may be several reasons why your application could be rejected. For example, having a poor credit score or a bead credit history could mean a rejection to open a personal account. Even the bank with the best personal account facilities may refuse to open an account for you. They are also not obligated to inform you what the credit agency has informed them about you. However, as an account opener you do have the right to ask the bank for a copy of the information they have on you. This will be provided for a small fee. Just in case you find any discrepancies in the information they have, you can ask for a correction and reapply with the bank.

Some Dos and Don'ts

After you have opened a personal account, it is crucial that you do everything you can to maintain the account. Overdrafts can cause serious problems when you're trying to apply for loans, etc. because your credit report will be affected negatively. Here are some tips to keep your account on the up and up:

Always keep a sufficient balance in your account. This will prevent any occurrences of bounced cheques and overdrafts.
Ask your bank about overdraft protection. This is useful in case you accidentally overdraw your account.
Be sure to scrutinize your bank statements carefully. This will ensure prevention of any errors.
Always keep your cheque card in a safe place, and keep you PIN number confidential.
If you find any suspicious transactions on your account, report it to the bank immediately. This helps minimize fraud.

If you don't have time to search through hundreds of banks' offers to find the best personal account for you, let SimplyFinance do it for you. Take a moment to fill out this short form, and one of our representatives will contact you to help you on your way to finding the best personal account for you.

CLICK HERE TO OPEN A PERSONAL ACCOUNT TODAY!

SimplyFinance - Personal Accounts

The Basics of Personal Accounts

Finding the Best Personal Account