Banking and Savings
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This section contains 3 information guides covering the main types of bank accounts you can have:
- Current Accounts
- Savings Accounts
- ISA Accounts
Current Accounts
A Current Account is an active bank account into which deposits can be paid and from which withdrawals can be made. It is an instant access account offering facilities such as cheque book, cash card and guarantee card. Automated payments such as standing orders and direct debits are available with a current account. Cheques can be drawn on this sort of account and there are many different kinds of current accounts so you should choose one that suits your own personal needs.
Savings Accounts
A savings account is set up for the purpose of accumulating funds over a period of time. The deposited money can be kept in a bank, building society, loan association or any other savings institution.
Interest is earned on the funds deposited in the savings account. Funds may be withdrawn only by the savings account owner or an authorised agent.
ISA Accounts
An ISA is a tax efficient savings account. An ISA account is free from income tax and capital gains tax and is available to UK residents. You can open an ISA account from the age of 16yrs but if you wish to incorporate a stocks and shares or life insurance component you will need to be at least 18yrs of age. An ISA can only be opened in one name - joint applications are not accepted.
