Which bank account should I get?
With so many different types of accounts available, it can be difficult to choose. Learn about different types of common accounts with the ncademy to help you decide which suits your needs!
What is a current account?
A current account is often the standard account for everyday banking, used to make payments, access cash, and manage day-to-day finances. You can use a debit card with your current account to make purchases, withdraw cash from ATMs, and make online payments.
Given that they are designed for everyday use, current accounts are frequently used to receive salaries or pay regular bills.
Some banks also offer an overdraft with their current account. This is a form of short-term borrowing that allows you to spend more money than is currently in your account.
What is a savings account?
There are many different types of savings accounts. The savings accounts that you may be interested in or have access to depends on the country you live in.
Broadly speaking, savings accounts are different to current accounts in that they are meant for saving your wealth, not for everyday expenses like bills. As a result, they often place restrictions on number and frequency of withdrawals.
Savings accounts also often offer interest on your wealth. For many banks, they are pivotal sources of funds for lending. This means that the funds you deposit may be used by banks to lend to other customers. The interest paid on repayments by these customers goes towards the bank’s profits and the interest you are paid.
Neither current accounts nor savings accounts are safeguarding accounts. This means that if the bank providing your account is declared insolvent, your wealth is at risk of being lost and used to pay creditors.
What is a safeguarding account?
At nsave, we offer access to safeguarding accounts. But what is a safeguarding account?
A safeguarding account is a kind of segregated account. This means that your money is kept separate from the money used to fund a bank’s operations. Safeguarding accounts allow you more autonomy over what your money is used for. Any movement of funds or use in investments, for example, would be your choice, making it easier to track and keep you in control of your wealth. No person other than you and the institutions holding the funds placed in a safeguarding account may have any right over your wealth.
It also means that if the bank providing your safeguarding account was to be declared bankrupt, your wealth is separate from their assets and therefore protected from creditors.
The type of bank account you choose to go for will depend on your priorities for your wealth. For financial security, transparency, and the choice to use your wealth as you wish, download the nsave app today.
