How bank accounts work
There are two main types of bank and building society accounts:
You pay in ("deposit") the money you receive, such as your wages or student loan
You take out ("withdraw") money, when you need to pay for things.
A current account is the basic account for day-to-day transactions:
The bank may supply you with a debit card, which can be used to pay for things in shops or to draw cash from a cash machine. It may, if you are over 18, give you a chequebook, so that you can pay for things by giving a signed cheque. It may also – again depending on age – give you a credit card.
You'll receive a regular bank statement – probably once a month – to show you how much has been paid in, how much you have withdrawn, and how much money you have in your account (your "balance"). Your statement should also show how much interest your money has earned, but this is usually a small amount due to the very low interest rates that current accounts offer.
It's well worth checking your bank statement to make sure everything in it is accurate. This means checking the withdrawals you have made or bills you have paid ("debits"), as well as the money paid into your account ("credits").
Savings AccountsFor saving money for other than very short-term purposes, a savings account with a bank or building society is better than a current account because you will earn more interest.
You can use it either to save regularly, or when you have some spare cash.
It's a good idea to check the conditions for withdrawing cash from the account before you start saving (for example, you may have to let the bank know of a withdrawal days in advance).
