Whether it’s to deposit your salary, direct debit your electricity bill, save for a trip or make unexpected payments, bank accounts are for much more than just income and expenses. Knowing how to manage it properly will give your financial health a boost.
For many people, opening a bank account is their pathway into the financial system. Knowing what accounts are out there and which one will best suit your needs is the first step to getting the most out of your bank.
Types of bank account
There are two main types of account: current and savings. Each type consists of accounts for young people, students, pensioners and other groups, including joint accounts. While they all let you take out money when you need it, they earn different rates of interest.
Banks can offer different accounts based on their location, and to groups like sole traders, SMEs, large enterprises and young people making their first foray in the banking world and looking to save for the medium to long term.
This article titled “Consejos para enseñarle finanzas a tus hijos (Tips to teach finances to your children)” (in Spanish) on Santander Consumer España’s “Tu Futuro Próximo” blog explains the importance of little ones learning about finances.
Bank account fees
Fees are amounts you pay to banks for their services. The most common are for maintenance, management, transfers and overdrafts. There are also card fees for issuance, maintenance and ATM withdrawals that, although not for the account itself, are worth knowing about. To delve further:
Banks can reduce or waive fees if the customer meets certain conditions or takes out other products like having their salary, pension or unemployment benefit paid into their account; making a minimum number of transactions; or taking out an insurance policy.
Fees could vary according to where we live. You can check all fee-related concepts on our websites in the countries where we operate and regulators’ websites.
Terms and conditions. What are they and how do they affect you?
They are the obligations you assume when opening an account. Failing to fulfil them could lead to missing out on benefits (like no fees) or paying penalties. The most common are:
Using your bank account properly will boost your financial health and help you reach an economic level where you can meet payment obligations and plan your future confidently.
Sound account management will enable you to achieve financial and personal goals like buying a house or a new car; saving for retirement; studying; and travelling.