Teens Guide to Opening Your First Current Account

Opening a current account is usually a straightforward process, but if you are considering opening one there are a few things that can make the application process run smoother.

First of all, consider what you really want to use the account for. It might simply be having a place for your money that you can access 24 hours a day, or you might want to be able to set up standing orders and direct debits so you don’t have to worry about missing a bill payment such as your mobile phone bill.

While they may not rival the interest rates of savings accounts, current accounts could still offer competitive interest rates and are great if you are saving up for something special in the short term.

After you’ve decided what you want your current account for, it’s important to shop around for a good deal. The main points you’ll want to look at are how old you have to be to open to account, the interest rate you’ll be getting on your money, the amount of access you’ll have to your money and how much the account will cost every month – if anything.

Most current accounts give you a debit card, to be used for purchases at shops, and after registering for the service also allow you to look at statements and make payments using secure online banking. To encourage new customers to sign up, some banks offer freebies such as MP3 players and vouchers for high-street stores. While these are indeed nice, it is still necessary to compare accounts rationally, as any account offering these freebies could have high monthly fees that will cost you a lot more than an MP3 player over the life of the account.

Now that you’ve chosen which bank you want to open your current account with, you should go to a branch and talk to a staff member. It is possible to sign up to most current accounts online, but if this is your first bank account it will be better to head into a branch. Make sure you take along some identification, such as your passport and a proof of your address. You may also want to take along a parent or guardian as you may need their permission to set up the account. It shouldn’t take too long to do all the paperwork and then the bank will send you information on the account and a bank card in the mail. You will receive your PIN to access your bank card in a separate letter and your PIN should always be kept secret.

Once you’ve got your bank card and PIN, don’t go crazy on the high-street. Current accounts are great for being able to have easy access to your money, so enjoy that freedom – but remember not to spend it all at once.
—
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.