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Financial Dictionary - Bank account

Bank account

A bank account is a banking product where the account holder or holders sign an agreement with a financial institution that allows them to manage their money using the tools its offers without having to have it in cash.

A bank account is really a deposit of money that enables us to perform everyday banking transactions: transfers, payments, paying in, direct debits, ATM cash withdrawals, etc.

Bank accounts also enable us to access a range of linked products, such as deposits, credit and debit cards, insurance, pension plans and mortgages.

The main characteristics of bank accounts are:

  • Immediate liquidity, giving us access to our funds when and where we want.
  • Accounts usually charge fees. These vary depending on the type of account, the products associated with it and the bank. There is usually a maintenance fee for keeping the account open.
  • They offer a range of payment methods, such as credit and debit cards.
  • They have a unique identification code, known as the IBAN

There are a number of types of bank accounts. The most common are:

  • Current account: this is a demand deposit that gives you access to your money whenever you want. Current accounts are one of the most popular banking products.
  • Salary account: this is for people who have their salary paid directly into their bank.
  • Deposit account: these differ from other accounts as they pay interest.
  • Interest-bearing account: this is a type of deposit account from which you can withdraw funds without penalties.

Plus

Salary account

Improve your salary with more perks, no fees and no maintenance charges.
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Accounts

Discover our wide range of fee-free current accounts for individuals.
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