If you’re seeking to improve your outlook and hopefully make certain life-changing decisions, you need to start thinking about finding the right bank account for you. After all, a good bank account can help you save money and provide you with access to certain benefits. One of these important decisions is the choice of purchasing a home. With a home of your own, you’re not only protecting you against dangerous hikes in rent in the future, but also against the constant threat of inflation eating away from your wages and savings. In terms of long-term financial safety, only gold can beat this option – if at all. And yet, any person looking to purchase a good home should ensure they have a suitable account that will support their home purchasing process and also their other financial obligations.
Information is vital
There are certain factors that need to be considered. There are different bank accounts for different applications. The choice of each is important so consultations with bank officials and also understandings the requirements of each account are important. In order to afford a good home, a bank account will have to support the mortgage payments and charge as little as possible, in terms of fees. Buying a home is a costly affair and any action that can be taken to reduce the costs is of paramount importance. As a home buyer, you will first have to save some money in their account so as to afford the home down payment. As a rule of thumb, you should be able to save about 15 – 25 per cent of the total cost of the home.
There are a few account types that meet these criteria and which you should therefore seriously consider. These include:
These are great for paying off bills, receiving payments such as a salary and for processing payments such as cheques and others. They can, occasionally, also be used for saving money, although interest rates tend to be low and uninviting. Although they are still the by far most widely accounts, they are increasingly criticised for providing far too easy access to overdrafts and, thus, facilitating debts.
These accounts are a form of current account but with extra features. They have a certain monthly charge but the extras may be useful in some cases. These include insurance cover, car breakdown cover, overdrafts on the account and other extra services. In a bid of saving costs, packaged accounts should only be on your list of you really require the additional insurances anyway and can save money by getting them from a single provider.
Basic bank accounts
These are simple bank accounts offering the most basic banking facilities. Formerly intended for people with poor credit only, they have quickly caught on with a new generation of bank customers focusing on the essentials of banking rather than many unnecessary gadgets and extras.
Although they tend to require paying a monthly fee, in many cases they can end up saving you money, since they come with all but no additional charges and fine print fees. If you’re seriously thinking about getting yourself a home of your own, they should definitely be on the top of your list. The point, meanwhile, is not so much to claim that there’s a single account which is best for everybody. Quite on the contrary, it is about making informed decisions tailor-made for your needs. If you’re seeking to make life-changing decisions, after all, it is always best to take them yourself.