The world of banking has changed considerably over the course of the last decade or so, with mobile technology having played a pivotal role in this shift.
An estimated 40% of Brits now bank using mobile apps, for example, with this number likely to increase incrementally in the future.
We’ve also seen the range of available bank accounts diversify considerably in recent times, with basic options having been supplemented by more advanced alternatives with additional benefits to customers.
In this post, we’ll consider the key things to consider when opening a more advanced bank account, while exploring why this may be a preferable option for some customers.
Choosing your Bank Account – What do Advanced Accounts Offer?
When you open a basic bank account, you’ll be able to access a number of standard features that are available for free.
More specifically, you’ll be able to receive automated payments and transfers into a standard account, while it will also be possible to make withdrawals using a debit card. Similarly, you can pay bills by Direct Debit or a standing order with a basic bank account, although there may be restrictions when setting up payees in this instance.
These features may be enough for most customers, but there are a host of additional features on advanced accounts that offer considerable value. Some accounts offer predetermined overdrafts, for example, which are authorised by your bank and provide a buffer in instances where you exceed to balance of your account.
Then we come to paid accounts, which offer an even wider range of features in exchange for a monthly maintenance fee. These features can be diverse and worth a considerable amount financially, while they may include examples such as insurance products, home repair coverage and discounts on certain branded purchases.
Paid or premium accounts may also offer greater access to advance or emergency cash, depending on the individual lender that you bank with. At the same time, advanced accounts such as this may also offer money management services that help you to budget and repay your monthly bills on time, making them ideal if you’re looking to manage a significant debt liability or improve your credit score.
How to Open an Advanced Account
If opening an advanced account sounds like a viable option for you, the first step is to compare the market for the most suitable product.
This will require you to measure the features that you desire alongside the monthly maintenance fee, so that you can open an affordable account that offers genuine value for money.
You should also prioritise service providers that charge a single transparent fee, as this can be factored into your monthly budget and be repaid at a fixed date and time.
This negates the risk of incurring additional or unexpected charges, which can eat into the value provided by some advanced accounts.
This will help you to create shortlist of options, from which you can select a provider that best suits your needs and open your brand new account!