What types of bank accounts are available?

Opening a bank account is, for the vast majority of people, their first contact with the financial world. In this article we explain what type of bank accounts are available and how they can be adapted to your circumstances and needs.

Bank accounts are deposits of money, usually on an indefinite basis and which you can cancel whenever you want, through which you centralise a number of very common financial arrangements:

A bank account can have one or more account holders. If you share the ownership with one or more people, the way you have access to the money and operate the account can be one of two types:

As the account holder you can also name authorised persons, who will be able to use the money in your name.

Types of bank account

There are two main types of bank account:

They both share a number of common features:

What are salary accounts and securities accounts

One type of current account is the salary account, where it is a condition that the person's salary or other regular income (such as a pension) is paid directly in to the account. In return, these accounts may offer advantages, such as discounts on bills, exemption from maintenance fees, some form of remuneration or even remuneration in kind.

Another specific type of current account is the securities account, in which, instead of money, securities, such as stocks or bonds, are deposited. It is a necessary instrument for managing securities and it must be linked to a current account into which cash will be paid to purchase the securities. In addition, this account will be credited with dividends and proceeds from sales transactions.

Types of savings accounts

There are other types of accounts on the market that are geared towards savings, such as interest-bearing savings accounts. As the name suggests, they offer some form of remuneration, i.e. the account balance will earn you interest. They usually have a more limited functionality than a current account. For example, they do not accept direct payment of salaries or direct debiting of bills nor do they allow you to link a debit or credit card to the account. However this may be seen as an advantage if you wish to save. Unlike a fixed term deposit account, you can have your money available whenever you need it, without any penalties.

Choosing a bank account

Knowing, broadly speaking, the characteristics of the different types of bank accounts that exist, when choosing the one that best suits you, it is worth considering:

Now that you know what to think about when you open a bank account, find out about the Santander current accounts and choose which one is best for you.