The Basics of Personal Accounts

16-Aug-2007

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. 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!