People often want reliable ways to manage their money for different needs and goals. Current and savings accounts can play a role.
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
In this article, learn what people may use each account for, their key differences, and why it may be useful to own both kinds of accounts.
Current accounts are generally considered to be 'everyday' accounts that people use for frequent financial needs. Think of cash withdrawals, bank deposits, food shopping, and receiving regular salary payments from an employer. Approximately 96% of adults in the UK had a current account as of May 2022.1
With a current account, people can receive government payments and make payments for recurring expenses, such as rent, mobile phone and internet bills. They may also be used to pay for other living costs, such as media subscriptions and energy bills.
Current accounts enable people to:
People who need to open a current account can do so at a local bank branch or by visiting a digital-only bank's website. They are typically free to open.
Here are some other potential factors to consider about current accounts:
Approximately 70% of UK adults had a savings account in 2022.1 Savings accounts can be similar to current accounts, but they differ in some ways.
Saving accounts may enable people to:
Many savings accounts may not come with a linked debit card, given they are designed to help people save money and not spend it on a frequent basis.
Here are some other potential factors to consider about savings accounts:
People who need to open a savings account can do so at a local bank branch or by visiting a digital-only bank's website. In some instances, individuals may need to have already opened a current account with the same institution before opening a savings account.
When managing a person's finances, many people find it useful to have both kinds of accounts. People may use an existing current account to pay for living expenses while designating a savings account to put a few pounds away for a rainy day — or to work toward holidays, cars, or property.
It’s not uncommon for Britons to have more than one savings account, too. For example, a person may regularly transfer money into an emergency savings account, their rainy day savings account, and even another account for larger purchases or investments.
Current accounts are those that people tend to use on a near-everyday basis while savings accounts typically come with greater self-imposed restrictions that help people achieve short and long-term personal budgeting goals.
Having both a current account and savings account may help people to:
Get more tips on budgeting and saving money.
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