You may or may not be new to the world of banking, but reading this only means one thing: you want to know more about bank accounts. There are different kinds of accounts, and each serves a different purpose. To each, there are a number of benefits as well. For this occasion, we prepared this article to give you a better insight into bank accounts. Since we don’t have an unlimited space, we will try to keep it as short as possible, without forgetting any important information that you could possibly need for updating your banking knowledge.
First of all, let’s start with the Basic Account, which is the most common account. The basic account acts a stepping stone to a current account. It is often used to provide fee-free and low-cost for low-income customers. The Code of Banking Practice in Australia allows low income earners to be assisted and given Centrelink or other Government-provided benefits.
The account may offer a debit card and a linked saving accounts to help you budget. There will not be a required minimum balance and will only allow six free transactions per month.
Transaction or Current Account
Personal Transaction or Current accounts pay the bills and help you get by day-to-day banking needs. Transactions may be made via telephone or on the internet. It provides customers with cheque books, debit and credit cards. Some institutions, however, may charge a monthly fee or charge per transaction made. The account allows customers to access their money through the branch itself, an Automated Teller Machine (ATM) or Electronic Funds Transfer at Point Of Sale (EFTPOS) terminals. It may offer interest, but if you’re seeking higher interest rates, then a Savings Account may be better.
Savings accounts give you interest on your money. In this manner, you’re actually encouraged to save. It may be used to deposit payments and to pay the bills, but there are no cheque books involved. You may access your account via telephone or the Internet as well. There is also such a thing as an “Internet-only” or “Online Savings Account” with higher interest rates. Access to your account, however, is limited to internet and phone banking. A savings account may not be as flexible as a current or transaction account, but it does help you earn more.
Money Market Account
Money Market Accounts offer higher interest rates than those offered in savings and current accounts. The imposed minimum balance is much greater as well. Withdrawals, however, are limited to six per month, and may not be done more than thrice by check.
This is a great way to keep control of your money. A time deposit lets you surrender a certain deposit for a fixed term. You will not have access to your funds for a certain amount of time, and in turn, the bank pays interest to the account. Some banks allow account holders to withdraw the interest that they earn.