My Money:
Banks and Building Societies
Follow are easy advice on how to set up your banking account.
Banks and building societies offer a really good and safe place to keep your money. It’s also a great way for you to try and save your money and earn some interest. There are lots of things you need to think about carefully when opening a bank or building account as they make a difference to how easy it is to get to your money.
Location
Choose a bank or building society that is easy to get to. This may be important to you as you may want to have easy access to your money and make regular deposits. Your account may only come with a pass book so you will have to get to your bank or building society to put money in and draw money out. Your choice may be limited if you live in a rural area or are after a particular account.
Internet banking may be an option. Internet banking has the obvious advantage of being able to control your account without having to phisicaly go to a bank or building society. However, there are down sides. You need to be confident about handling a bank account without the need to ask for help and advice. There is little customer service available and often you will receive a postal statement once a year rather than every month as with conventional banks.
Accessing your money
Most bank accounts for young people offer a cash card, which allows you to take money out of any branch or cash machine. Some cash machines may charge you for this service.
There may also be a debit card available on some accounts (depending on certain conditions such as age set by the bank). A debit card allows you to take money out of your account like a cash card, but also allows you to make payments directly with it in shops, over the phone or on the internet.
Some building societies will give you a pass book. Every time you take money out or put it into your account, it will be entered into your pass book, so it’s easy to keep track of your money.
One thing you don’t want is someone else getting access to your money so security measures are important.
PIN - With both a cash card and debit card you will have a Personal Identification Number (PIN). This is a four digit number that you will need to remember so you can take money out of a cash machine and make payments in shops. Never give your pin number to anyone. If you need to write it down to remember it, don’t keep it with your card
Chip and PIN - You may have heard about chip and PIN but what is it? During 2004 a new system was introduced across the UK to reduce debit card fraud. The chip and PIN card looks the same as your existing debit card, but it has a ‘smart’ chip that holds your 4 digit PIN. When you pay for goods in a shop with a chip and PIN card you won’t have to sign a receipt. Instead you’ll be asked to enter your PIN into a keypad.
See ww.chipandpin.co.uk/
Lost or stolen cards, cheque books and passbooks - If you do loose or think your cash, debit card (chipped or not) passbook or cheque book have been stolen you must report it straight away. Your bank or building society may also have a 24 hour emergency phone number that you can ring if you can’t get to your local branch.
Type of accounts
There are a lot of different accounts on offer these days and hopefully after a little bit of shopping around you will find one to suit you. When you open an account, one thing is for certain: You will have to prove who you are. All banks and building societies will ask for some form of identification, such as a passport or birth certificate and proof of your address. It is a good idea to check with the bank or building society beforehand to find out what they will accept.
Youth Accounts
If you are under 16 there are plenty of accounts available. Both banks and building societies offer a good range of these types of accounts. A single bank or building society may have two or more accounts available to young people.
To open a young persons account most banks and building societies will ask for a small cash deposit. You may also have to ask your parent or carer to open the account on your behalf. You will either get a passbook and/or cash card to access your money.
Current Accounts
You have to be 16 or over to open a current account. Most people have a current account to manage their day to day finance. With a current account you usually get a cash card or debit card and/or cheque book. You will also be able to set up Direct Debit and standing orders and possible arrange an overdraft.
Savings accounts
There is a huge range of savings accounts available to suit your needs. Most banks and building societies will ask for a cash deposit to open a savings account. If you are trying to save, you would be best to choose an account with a high interest rate. However, a general rule is the higher the interest rate, the less often you can take money out of your account.
Student accounts
Many banks and building societies offer student accounts, with special overdraft rates while you are studying. A good place to look for what offers are available is on ‘studentzone’. It will also give you some information on student loans, grants
and scholarships.
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