A lot of people think all bank accounts are more or less the same, but that's actually not true. There are a number of different types of bank account for different needs and purposes.
Here's a quick rundown of some of the most common types of bank account in the UK.
When most people talk about bank accounts, they're actually referring to a current account. A current account is the 'standard' bank account that banks and building societies offer to the majority of their customers.
Most current accounts provide account holders with somewhere to keep their money, a Direct Debit and/or standing order facility, a debit card and an optional overdraft facility. Many also offer some level of interest on the account balance.
People who have struggled with debt in the past (and therefore have a poor credit rating) may struggle to get a current account.
Basic bank accounts are offered by banks and building societies, but they're generally not advertised very much, so to get one you may have to go into a branch and ask. As you might expect, they offer the basic bank account features (somewhere to put your money, possibly a debit card/cashcard and usually a Direct Debit or standing order facility) but little else.
Basic bank accounts are much easier to obtain than current accounts, and over time they can help you to rebuild your credit rating.
Same as a basic bank account - bank account providers offer accounts to people with a bad credit history. These bad credit bank accounts typically don't require a credit check, meaning you may only have to prove your identity to obtain an account.
With a managed bank account, your account provider will take care of budgeting on your behalf - helping you to avoid overspending by putting aside enough money for your essential costs each month.
This can be especially useful, because it can help you get around the problem of charges for unauthorised overdrafts and bounced payments (unless not enough money enters your account). You may have to pay for this service, so make sure you look into it carefully to see exactly what you'd get for your money before you sign anything.
