Gone are the days when money was either made from metal or paper and could be kept under the bedroom mattress. Modern money is usually made up of binary digits and can be transferred from place to place is seconds. It’s now almost impossible to operate without a bank or building society account.

Choosing a bank

All banks differ so it pays to have a look around and find the bank that’s best for you. Below is a list of questions that could be worth considering when shopping for a bank.

• Where is the nearest branch? Can I get there easily?
• What interest will they pay on any money in the account?
• What cash points can I use without being charged?
• What telephone and internet access will you have to your account?
• Will you need any special services? such as sending money to foreign countries? If so then remember to ask each bank about your special circumstances.
• Is it likely you’ll need an overdraft facility? if so find out what charges there are for overdrafts and buffer zones.
• Check that the bank subscribes to the banking code.
• Remember that you can have a current account with one bank, a savings account with another and credit cards and loans with other lenders.

What sort of account?

There are 3 main types of bank account.

• Basic Account – These allow you to pay money in and withdraw money but don’t allow you to negotiate overdrafts. Many basic accounts don’t have switch or solo facilities so you have to withdraw money from the bank or ATM’s. These are often used when someone sets up their first bank account.
• Current Account – Current accounts are the same as basic accounts but you can negotiate overdrafts, use debit cards and cheques. They offer more flexibility but you can incur more charges with these accounts.
• Savings Account – They offer a higher interest rate but offer limited access to money. They rarely have cheque books and debit cards and you sometimes need to make a request a few days in advance if you want to withdraw money.

How to open an account

In order to open a bank account you need to prove your identity. To do this you’ll need to provide proof of identity and proof of address. Banks will accept the following documents as proof.

• Gas, Water, Phone and Electricity Bills
• Valid Passport
• Drivers Licence
• Medical Card
• Council Tax Bill

If you can’t produce the following then the bank should have special procedures for dealing with people without this documentation.