What is a Current Account?

Henry Richards By Henry Richards, 16th Oct 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/1ev3u7ax/
Posted in Wikinut>Money>Current Accounts

In the simplest terms, a current account is a measure of wealth - the greater the surplus, the greater the wealth.

What is a current account?

In general economic terms, at an international level a current account is very simply put a reflection of a nation’s wealth. So, if you have a surplus in the current account the nation is able to increase its foreign assets, and a deficit would mean the selling of those assets until the account is balanced.
In principle the current account that you or I would have works in much the same way. Most people will have a current account and when they are paid for their work or services the balance reflects their personal wealth or the wealth of their business. In essence it’s the money you use day-to-day.
As with any industry, banking is a competitive business so every organisation will try to offer accounts that will suit its customers best, and to make it more attractive for them to stay rather than going with a competitor.
What types of current accounts are there?

Standard accounts

What types of current accounts are there?
All banks offer accounts that fall into the categories the most common of which are: standard, extra benefits, and student and graduate accounts.
The standard is plain and simple. Your money goes in, you pay bills and standing orders and, unlike some accounts you don’t have to pay extra for the services provided.

Bells and Whistles

Increasingly customers are being drawn to accounts with extra benefits. These usually come with a monthly charge of around €10 - €15, but making use of the benefits can make the fee seem like good value. These sorts of accounts would be of particular benefit to people who are often going out or travelling.
Banks will have agreements with venues and entertainment companies, so when you book tickets for concerts, sporting events and shows you can get up to 25% off. An invaluable benefit if you’re out every other night of the week.
They usually offer travel insurance you and your family, or anyone else such as your partner to be covered on your insurance. You know what they say, it’s better to have it and not need it.
Not all banks offer this, but some will also include membership to a vehicle recovery service such as the AA or RAC.
One of the most precious possessions we have mobile phones. The keep us connected and you’ve probably been bumped into on the street by someone who was concentrating more on the screen of their phone than looking where they were going.
Mobile phone insurance is usually included in these accounts; you can get insurance from your service provided who will also be able to replace your hand-set more quickly, but if you’re already paying for the bank account it would make sense to register with that.
The next time somebody asks you “what is a current account?” you’ll be able to tell them.

Tags

Bank Account, Benefits, Current Account, Direct Debit, Economic, What Is A Current Account Graduate Account

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This blog is run by a bunch of people working for a digital agency.

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