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The Basics of Personal Accounts

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:

  1. 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.
  2. 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.
  3. 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.