As much as there are a variety of bank accounts, from a current account to a savings account, there are different ways to set up a new bank account. We take a look at your options.
Whatever route you take to open a bank account you will first need to fill in an application form and usually provide proof of your identity including your full name, date of birth and address.
Be aware that if you’re bankrupt or have a record of fraud, it’s unlikely you’ll be allowed to open a bank account or if you have a poor credit rating it’s likely you will be refused permission to open one.
That said, if you’re bankrupt or have a poor credit rating, you may be able to open a basic bank account.
Ways to set up a new bank account
There are a number of different ways to open a bank account, including in a branch, via the phone or online.
In a branch is perhaps the traditional favourite. You have to visit the branch and fill in your application and show your id. Many people like the physicality of this option, although perhaps it is becoming less popular as more people become comfortable with dealing with their personal finance matters online.
Via the phone remains popular, with some banks promoting the fact that you can access a real person 24 hours a day, 365 days a year to assist with you banking matters.
Many people are now setting up their new bank account online – it saves time, you can bank when it suits you and it really is safe and secure.
Many banks actually offer incentives to open a bank account online. This may be a cashback offer for example. You may have the option to apply for an enhanced current account too, offering you added benefits and the potential to save money on certain products and services.
Online banking then gives you access to mobile banking, vital for the smartphone users, of which there are huge numbers.
Switch Bank Account
Whilst sticking with the bank you know may seem the easiest option, rather like getting the best deal on your utilities, today it’s equally important to get the best deal on your bank account.
Another option therefore for setting up a new account is to make use of an account switching service, whereby your new bank arranges the transfer to your new account.
It’s straightforward and easy for you as having applied for a new account with a bank offering the service you can sit back whilst they move all your bill payments and direct debits across, as well as of course your credit payments.
If you’re an existing customer of a bank, you may want to upgrade your account and this is something your bank can help you with.
As a requirement of setting up another account
A fifth option maybe to set up a bank account almost as a by-product, or as a requirement of setting up another type of account. For example, you may want to set up an ISA account with a bank but in order to do so and be able to manage your account, you need to set up an online bank account. The bank of course will support you as you set up the accounts.
As with all your financial decisions, it’s vital that you take the time to consider what you need from your bank account. If you are student for example, your needs are likely to be different from a graduate.
Compare bank accounts that are available and then apply to set up the account that best suits your needs.
If need be speak to a banking professional to get specific advice to help you make your decision.