subject: Top Tips and Warnings for Personal Bank Accounts [print this page] Top Tips and Warnings for Personal Bank Accounts
Penalty Charges
Whether you choose a basic, current or package account, they all have terms you will formally sign agreement on with your chosen bank. These terms and conditions vary with each financial provider, and breaking them can incur some costly penalty fees. For this reason, be sure to read the fine print thoroughly so that you don't end up in a bind. One of the main charges comes from going over your overdraft limit - to this end it's important to monitor your account carefully so that you don't slip too far into the red. It's also a good idea to plan ahead and contact your bank to arrange a temporary or permanent overdraft extension if you think you will need it. Another penalty fee incurred by banks is through not meeting your minimum monthly deposit. This type of account is unadvisable if you're not absolutely confident that the monthly amount with be consistently met.
Access
Being able to conveniently access and manage your personal finances is crucial and the bank account you settle on must reflect this. Whether you prefer the personal touch of face-to-face interaction, in which case you'll want a local branch that has flexible opening hours and an easy location, or whether you prefer 24/7 internet banking, make sure you choose a bank that gives you the access that suits your lifestyle.
Cheques
Increasingly, cheque books are being phased out in preference to online payments. Many current accounts no longer offer cheque facilities. If you favour this traditional method of payment, check that the bank you choose still provides this before signing up for an account with them.
Package Accounts
With package current accounts, you will agree to pay a monthly fee in return for a bundle of services that go beyond managing your finances. These can include travel insurance, vehicle breakdown cover and pet insurance. When looking at these types of accounts, be sure to do you research to determine whether you will actually save by taking the package, or whether you would best get value for your money plus more comprehensive benefits by taking each service separately.
Switching
Since the financial marketplace is highly competitive, many banks these days offer incentives for switching your current account to them. If you research and compare what's currently available, you could end up pocketing some extra cash or getting favourable interest rates on in-credit balances and overdrafts.
Student Accounts
If you already have a student account, be aware that many banks only allow you to have one, so if you're thinking about opening a second, be sure it's allowed by the financial provider of your choice. Also, don't be bowled over by flashy offers such as a free iPod - what you want to make sure of is getting the essentials such as low penalty fees, a good overdraft facility and fuss-free account management.
Complaints
If you have a problem with the service of your current bank account provider, you firstly need to make this known to the bank itself. It's wise to do this formally and concisely in writing plus keep copies of the correspondences for your official records. If they don't respond or if you're unsatisfied with their decision, you can then take you complaint to the Financial Ombudsman Service - it is their job to resolve issues between consumers and banking institutions.
Conclusion
All in all, the most important factors when shopping around is to research and compare bank accounts so that you can be sure not only to find the most competitive deal, but the financial solution that best suits your lifestyle.
