Learning to save when you're young is a great habit to get into for later life. Some people become accustomed to saving faster and more readily than others, but what is clear is that saving is vitally important. We live in a time where tuition fees for university, weddings, cars and house maintenance/repairs are becoming more and more of a financial burden, and having money saved up can really help to make affording these things realistic.
To start up a business as a limited company, partnership or most other business structures you will need a business account. (Sole traders can use their own personal accounts but are advised to set up a business account to ease things like yearly accounting calculations.)
It's a good idea to teach children to save from a young age, so they'll be more likely to handle money wisely when they're older. Opening a savings account in your child’s name is also a good idea, as this will help hugely towards the costs of university education, a first car, starting a business or a deposit on a house. The importance of this in the current economic climate cannot be overlooked.
With a current account you'll get easy access to your money, and will usually be offered a debit card and a cheque book, but if not, you will probably be able to request one. You can manage your bills easily and effectively by setting up direct debits and standing orders. You will probably be able to arrange an overdraft facility if you need to borrow money.
Islamic banking conforms to the principles of Islamic Law (Shariah), which doesn't allow the receiving and paying of interest (Riba). Profit sharing is actively promoted.
Becoming a student is possibly when you'll be thinking about opening your first bank account. You might be tempted to go for free gifts and perks such as cinema tickets, but look at the long-term facilities a student bank account can offer before you decide which one to go for. Banks see you as tomorrow's high earner so will be vying for your custom.
More and more current accounts are becoming what is commonly known as ‘bundled’, meaning they have added extras that run alongside the account such as mobile phone insurance and breakdown cover. The catch, however, is that you will be required to pay a monthly fee for the account, which could be anywhere between £5 and £30 from the mainstream banks.
It is very unlikely that the government will let a big UK bank collapse. Furthermore, all UK bank and building society savings products are covered by the Financial Services Compensation Scheme (FSCS)
Bank accounts are almost a must-have for everyone in today's fast-paced, online focused society.
And if you don't have a bank account then it's probably time to think about getting one, as it's nearly impossible to do every-day things without one. They really do make life simple and cheaper.
There are three main types of CTF account; Savings Accounts, Accounts that invest in shares and Stakeholder standard CTF Accounts.