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What Should You Look For In A New Bank Account?

Lots of people stick with the same bank account throughout their entire life. They think it isn't worth changing to another one as it can involve quite a bit of paperwork. Some people even believe that switching accounts might lose them some money. Thankfully, that isn't the case at all. Plus, thanks to online documents and contracts, the paperwork has now been brought down to an absolute minimum. So, these days switching accounts is super quick and easy. It’s really worth looking into too, as banks regularly change the interest that is paid to different accounts.

Think it’s time you jumped ship to a different bank? Here are some things you need to look for in a new bank account.

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Online Or Bricks And Mortar?

Thanks to the Internet, there is now a wider choice of accounts. That’s because banks now offer a choice between online accounts and ones that can only be accessed in their bricks and mortar branches. A few banks offer accounts that can be accessed both online and in person. So, you need to think about how you want to access and manage your money. If you’d rather do it face-to-face with an employee at the bank, then you are better off sticking to a bricks-and-mortar account. However, it’s worth bearing in mind that most online accounts will come with the higher tier interest rates.  

Do You Need Instant Access To Your Cash?

You should also consider whether you need instant access to the cash in the account. If you are switching your main current account, then this will probably be the case. However, if you want to open a savings account that you aren’t planning on touching for a year or so, it could be worth going for a fixed deposit bank account. This will be frozen once you pay your money in, and you won’t be able to take any money out for a set period of time. But these kinds of accounts often bring the higher interest returns and bonuses.

Think About Interest And Tax

If you are planning on depositing a sizeable sum of money into a high-interest bank account, then you will need to consider how this could affect your taxes. That’s because the interest payments into your account could be fairly large, and they might have to be included in your income as a result. Therefore, they will increase the amount you need to pay in income tax. Whatever you do, don’t ignore this or forget to declare the interest to the tax man. Otherwise, you could face charges of fraud even if you didn’t mean to act fraudulently!

Consider Charges

Most bank accounts are free but some will come with some monthly charges. More often than not, these charged accounts come with a lot more perks, though. So, you need to weigh up whether paying a charge for an account is really worth it.

Finding the best bank account won’t be so difficult now that you have these fantastic tips!

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