Bank accounts for young people and students

Types of bank accounts

There are three main types of bank account:

• Basic bank account - for managing day-to-day money. This allows you to receive money (e.g. your wages or benefits), pay bills and set up direct debits. You will usually get a cash card (ATM card) but not always a debit card.
• Current account - also for managing your day-to-day money. This has more features than a basic bank account. It usually comes with a cheque book and guarantee card, and a debit card, and may allow you to have an overdraft.
• Savings (or deposit) account - for putting away money that you’d like to save; say for furniture, a holiday or emergencies.
• Sharia-compliant account - a current or savings account that is structured and run in line with Islamic law.

Many bank accounts offer deals for young people and students, so make sure you shop around.

How to run your account
Once you've opened your account, it's up to you to keep an eye on it. Your bank should send you regular statements showing everything that has been paid in and out. Check your statements carefully and report anything that you don't recognise or looks suspicious.

Online banking
Lots of banks offer online banking. You may find this is convenient for you and suits your needs. But it's also important to know how to protect your account and use these services safely.

Fees and charges
Your bank may allow you to arrange an overdraft facility with them but will charge you interest if you go overdrawn. They may also charge an overdraft fee for using the facility. You should check what these fees are before you go overdrawn.
If you overdraw your account without first getting agreement from your bank you will almost certainly be charged. The charges for doing this can be quite high.

Some bank accounts may pay you interest on the money you have in your bank account. Others may give free overdrafts to students. So make sure you check all the benefits and potential charges when opening a new bank account. Have a look at Saving and investing basics too.

Avoiding fraud and scams
There have been several frauds and scams where people have tried to get access to bank accounts. Keep up to date on what the latest scams are, so you can avoid them. Be careful who you give your bank account number to. Be particularly careful of emails or phone calls from people claiming to be your bank, but asking for your sort code or account number. This is a regular scam - don't get caught!