First and foremost, ever since banks started opening up customer accounts, there has been a debate about which type of account best suits their needs. There are different types of accounts and each bank categorises the accounts in a separate manner according to a particular service structure. However, all bank accounts lie in the two main categories of current accounts or savings accounts.
Both of these types are fundamental in terms of their principal position in the banking system. It is important to understand both of these terms, in order to open the right type of account for your particular needs. Here, we describe the pros and cons of both of these types and then conclude with our suggestion based on the research.
Savings Account Features
Savings account is designed for people, who are looking to employ their account in order to store their monthly savings. In principle, the aim of people, who are looking to operate this account want to build up their savings, and therefore looking for an interest on their stored money. The idea behind opening these accounts is to ensure that you are saving money over time, until you have achieved the savings that you require for a particular purpose. You can also keep these savings for a future need or simply keep this sum of money for emergency needs.
The main idea behind a savings account is to encourage people to save money and also keep it in a bank. This allows banks to hold enough money to invest in different business ventures and offer their customers an interest based on the profits earned from these investments. There are however other altercations with these accounts such as limited transfers allowed each month.
Current Account Features
Current account is also known by the name of a checking account or a running account. It is in principal an account which is used for the common transaction purposes. It is therefore, ideally designed for business needs where several exchanges of money are expected to occur during a working day. Another principal characteristic of a current account is that the money in such an account is not entitled to receive interest, since the bank allows you to move as much of it as you would like.
The main facilities that are associated with a current account are the availability of an overdraft, as well as free bank transfers and regular payments. Usually, current account owners can use the account unlimited times a day, and can also withdraw the whole amount in one go, if there is a need to pay anyone.
The Best Choice
It is often hard to decide which is a better option, until you have analysed both of the choices. If you run a business and want to use your account to run the daily operations of a business, then the current account is the one best suited to your cause. Current accounts allow you to take overdrafts, and you can also transfer large sums of money in these accounts without any fee deductions. This makes them ideal for bulk operations and all businesses and their important persons should get a current account.
On the other hand, a savings account is best, if you are an individual who is simply looking to save some money. Savings accounts encourage you to put more and more into them, because they offer interest over your stored sums. Most banks calculate the interest on these accounts on a daily basis, but may put a minimum limit for opening these accounts. You need to select this option, if you are saving for a big objective, such as a car or the down payment for a new home.
If you are struggling to decide the best account for your needs, you can visit the accounts comparatorbank-accounts on QuiddiCompare. It will help you learn more about these accounts and allow you to compare the accounts commonly available in the country.
If you are looking for a new house, you would definitely know that property rates keep on increasing all the time. Not only, houses are expensive, buying one is next to impossible for a common man. To make it easier for people to afford the expenditure of buying a house, mortgage is a lending system where the buyer pays a fraction of the house cost while either a private institute or a bank makes the rest of the payment.
How to get a Mortgage
You can apply for a mortgage from various sources such as from bank or a building society. You can also use mortgage broker or hire a financial adviser as well. Moreover, you can find the best mortgage by comparing all the available options online. The party that is providing the extra money is called a lender. Unless you are an expert on finances and especially in mortgages, we recommend you to take advice from an experienced finance adviser.
Either you can work according to a financial advice or you can go for a mortgage without any advice. In the latter case, before applying for a mortgage, make sure that you know exactly which property you are planning to buy, how much of the payment you can manage on your own, how much you need to borrow, how long will it take you to return the money, and what interest rate you will be comfortable with. Once you have confirmed all these details, the lender will prepare a document stating that the mortgage is being granted without advice. Since you will sign it, you cannot make any complaint later as the lenders will not be responsible for it.
However, if you go for the other route and opt for advice, the lenders will check your finances in detail to see if you can afford the mortgage on the particular asset or not. The best way to do that is to compare different mortgage options at Quiddicompare.