Five accounts that could help make your money go further and build your credit score
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Get on top of your finances by making sure you have the right accounts for your money. It’s easy to think you just need a current account and maybe some savings, but having different types of account will help your money work harder for you. This is true for everyone, regardless of your budget or income. Check this list and if you’re missing any of these accounts, consider setting one up to start your way on the road to living a richer life.
Every bank on the high street offers current accounts, and most adults in the UK have one. But do you have the right one for your needs? For example, a reward current account costs a monthly fee in return for some extras like home and travel insurance. But if you already have separate insurance, you’re paying twice for these things! Check the policies on both and see which offers more cover.
A basic current account is available to almost everyone. It can be difficult if you have been declared bankrupt, don’t have any credit history, or no permanent address. However, HSBC and Lloyds Banking Group (Lloyds, Halifax and Bank of Scotland ) offer No Fixed Address accounts. Shelter has some great information on how to get one.
If you have a basic current account but also a regular income, you could be missing out. There are many current accounts that pay interest on your current account holdings, up to a certain amount. For example, Nationwide offers 5% interest on the first £1500 in your account.
An easy-access savings account is ideal for the day-to-day small extras you might need to pay for. That might be to cover birthday gifts for family and friends, pay for a special night out, or to dip into if you’re a freelancer or on variable working hours and have a slow month.
