Nearly everyone of legal age within the United Kingdom possesses some type of bank account. Not only are these electronic marvels able to offer a quick and convenient means of accessing money, but they are often used to pay common bills such as electricity, gas and rent.  The real question is what types of accounts currently exist as well as knowing which one is the best option for your needs.  Let's take a quick look at some of the most common options before moving on to examine what steps need to go into the decision-making process.

Checking Accounts

Checking accounts are arguably the most common, as they provide you with an immediate means to withdraw money.  As their name already suggests, these are often the accounts used to electronically pay bills online.  They are normally associated with a withdrawal limit within any 24-hour period.  This limit will be determined by the financial institution in question.  If you happen to take money out of a foreign cash point (other than your bank), you will likely be charged a small fee.

Debit Accounts

Debit accounts are another popular option, as your bank card can essentially be used as a form of credit.  However, this credit will be based upon the amount of money in your account.  If you happen to overdraw this account, excess fees will often apply.  Debit accounts (like checking accounts) will provide you with a small income based off of predominant interest rates and this money can accrue over time.  Debit accounts and checking accounts can both be accessed via an online portal after you supply the appropriate credentials.

Savings Accounts

Savings accounts (often referred to as ISAs) are another popular choice.  The main difference is that these vehicles allow you to earn a higher amount of interest on the money contained within.  However, the trade-off is that it might be slightly more difficult to access these funds via a standard cash point.  Minimum balances can also be higher, so be sure to check with your institution in advance.  Interest rates can likewise vary and these are primarily determined by those set by the Bank of England.  Savings accounts will often be used to secure long-term growth or as a financial “nest egg” for the future.

Choosing the Correct Option

So, which one is the best for you?  You should first ask what the account is intended to be used for.  If you are looking for a quick means to access cash, debit or checking accounts are likely the best option.  If you are confident that you will not need to access the funds on a regular basis, a savings account could be a great choice.  Either way, always perform a good deal of online research and be sure to speak with a representative from the bank in question in order to learn more.