What else could your bank be doing for you?
The bank. A big building where your wages go that dispenses cash out of the wall, right? But what about the other helpful services you could be using? Find out in under two minutes – from the experts at LOQBOX.
- Hold your money and perform transactions. The obvious one. Primarily, your bank keeps your money safe and lets you transact with others.
- Pay and get paid. You can make or receive payments three ways: Faster payments – almost instant; BACS – normally takes three days; CHAPS – for larger payments, delivery is guaranteed at a cost.
- Direct Debits, standing orders and debit card transactions. The first two make recurring payments straight from your account, with Direct Debit carrying the benefit of the Direct Debit Guarantee. Debit card transactions are taken from your card by the other party (called a continuous payment authority) – change your card and payments will fail.
- Lending. Banks typically offer loans, credit cards and mortgages, but they may not offer the best rates, so shop around. Your bank knows your finances, which could be a positive or a negative if you’re looking to borrow.
- Middleware. Growing in popularity, middleware lets you access your bank’s services through a third party – usually a tech company you already know. Watch this space: you could soon be banking through your favourite chat app or social network!
If you’re wondering what type of account you should start off with, have a look at our handy cheat sheet.
This post was written and compiled by the credit experts behind LOQBOX – a completely free way to build your credit history by saving a little each month. To sign up or read more about the clever way LOQBOX works, head to LOQBOX.co.uk.
This is part of our Two-minute Money blog series – unlocking the secrets of the financial system, two minutes at a time.