Bank Accounts are no longer just somewhere to keep your money. The main type of bank account, the one you use for every day purchases, is known as the personal transaction account. However, if you are looking to get a higher interest rate, a
savings account or
term deposit account may work out better for you.
Nearly every bank or credit union offers some form of
personal transaction account, but features included can vary widely. Personal transaction accounts will usually include some, or all of the following:
- Access to money via branch, ATM, EFTPOS (debit card) and chequebook
- Telephone and internet banking
- B-Pay (the easy-to-use, telephone or internet banking, bill paying system)
- Direct deposit
- Automatic bill payments
- Overdraft facility
- Debit card
Fees are the biggest danger with personal transaction accounts. Some institutions charge a standard monthly fee that includes unlimited transactions, while others will waive the monthly fee, in favour of a charge on a per-transaction scheme.
Firstly work out how many transactions of each type you make, on average, in a month. Then find a bank account that lets you make that many transactions cost effectively. Fees are generally more important than interest rates for everyday transaction accounts, as interest rates will almost always be low with this type of account. If you’re looking for a higher interest rate, a savings account is a better option.
It’s worth spending some time to consider all of your financial workings and transactions in an average month before opening a bank account. You may be surprised at how your money is used, and, if you consider the details of all the various bank account types available, it may come as a revelation exactly how much harder your money could be working for you.
The easiest way to find the best bank account for you is with Which4U. We have compiled a list of the top bank accounts to save you time and hopefully money. With our comparison table you will be able to make an informed decision on the account that is right for you. Then all you have to do is click apply to start the application process.
