Frequently Asked Questions

You can open a bank account online or in a branch. You will need to prove your identity, residential address, fill out forms and answer some questions. The bank will likely conduct a credit check on you before offering lending facilities such as overdrafts.

Many who live together choose to open a joint bank account to pay shared bills and manage household expenses. As a joint account gives both account holders access to the money, you’ll need to trust the other account holder to make good financial decisions. Both account holders are credit checked, and a joint account will mean that your financial profiles become linked; this is not a decision to be taken lightly.

Savings accounts are suitable for saving money and earning interest, while current accounts are for everyday transactions such as household bills, purchases and cash withdrawals. It depends on your circumstances and requirements to determine which is better for you. Before you apply for a current account, it is a good idea to understand the benefits and features of different accounts to make a choice suited to your needs.

The Current Account Switch Service is a free service that lets you switch current accounts in the UK. Your new bank will handle the closing of your old account, moving any balances, and changing direct debits and other payments.

This depends entirely on the individual bank’s policies and account criteria, as well as your personal circumstances. For example, you would not be able to switch from a standard current account to a wealth management account if you did not meet the account criteria, such as having a large amount of money in savings, and a mortgage over £500,000 (or whatever specific requirements that particular bank account has for successful applications). It is a good idea to make sure you understand the criteria of any bank account you would like to switch to, to improve your chance of being accepted and that it is better suited to your needs.

This depends on the bank, and the type of account you choose. Many banks now have bank accounts with a monthly fee, that offer perks such as travel insurance and discounts on certain purchases. Other accounts are fee-free, but it is important to consider other day to day costs that any bank account may charge, such as overdraft fees, interest on debit balances, and other charges, such as bounced cheques, returned direct debits, etc. Look for a bank account that fits with your lifestyle. For example, if you like to travel abroad frequently, you may want to consider a bank account that offers travel insurance, competitive exchange rates on overseas currencies and low cost or free cash withdrawals abroad. Or if you have significant amount of money and you are a saver, you may want to research high interest current accounts or savings accounts where you could earn more interest on your money.

For a savings account, simple interest is the interest paid on credit balances, either monthly, quarterly or yearly, depending on the account. Compound interest is interest paid on interest already earned in earlier periods. This means that if you keep money in a savings account for a long time, you can maximise your return, as your interest will start earning interest itself. However, the same is also true for debts, but in reverse, so it is always a good idea to pay off debts as quickly as possible.