What types of bank accounts are there?
First of all, let's start by describing what a bank account is. Well, it is simply a banking product to manage our money. Instead of keeping money at home, the account provides other advantages and allows you to easily and conveniently perform certain daily transactions: pay bills, receive your salary, withdraw cash at ATMs... For this reason, it is considered a basic product, since it generates other somewhat more complex derivative products, such as bank cards and loans.
In general, bank accounts tend to have the following features: they have associated maintenance and administration expenses and fees; they have various associated means of payment, such as cheques and cards; they offer immediate liquidity via transfer, cheque, ATM or teller; and they are identified by means of bank codes.
Today there is a great demand for accounts, adapted to each type of customer and need. The most common are current accounts, salary accounts, interest-bearing accounts and savings accounts, and each one has its own features. To choose the one that best suits your needs and choose the correct one, you must analyse those needs in the short and long term; think about how you are going to use it; and consider other aspects that are fit around your financial situation. And of course, analyse the conditions and not get carried away by the offers.
Let's look at the main types of accounts:
It is quite convenient if you have a regular income and want to have it directly paid into the account. It offers multiple advantages in return: returned bills, discounts, fee waivers, associated free credit cards, gifts (in the case of some accounts...). But the best part is that there are waivers for certain taxes and fees as well as specific offers.
The main feature is that it does not require income or a balance and allows you to manage your money with ease; this makes it a very common account. On the contrary, current accounts do not offer great benefits due to having the capital deposited. It is a suitable product if you do not have much income or irregular deposits; it is also good if you are looking for an account that does not have a large number requirements, or as a backup account to turn to in urgent cases or if there is an issue with the main account.
This is an optimal option if you want to see your capital increase, save in the long term and also receive interest. The savings account has a somewhat more limited operation; in fact, it does not allow direct debits or offer cards. But if you want to save without risk and at your own pace, this is the account for you.
Finally, the interest-bearing account, which allows you to save as it will only give you a return if you have money in the account. It also offers liquidity at all times and with no penalties for withdrawing funds before the stipulated term expires. The interest-bearing account combines the functionalities of a savings account and a current account. It is similar to the first, although it differs in its operation: compared to the savings account, the interest-bearing account will give more interest than a current account, but less than a fixed-term deposit. It also allows you to set up direct debits, use the ATM and have associated cards, although certain costs and fees are charged.
Other types of bank accounts are children's accounts, young accounts and foreign currency accounts; very specific products that meet very specific demands.