Bank account

A bank account is a necessary element in the life of a person of legal age. Digitization and the online market force anyone to have a bank account to be able to make purchases, administrative procedures or payment of bills such as electricity or water.

The bank account is a product offered by financial institutions so that their clients can deposit their money in a safe place. In addition to this, the client always has the right to extract the capital without any type of penalty.

Throughout this article, we will explain what its characteristics are, the different existing modalities and the benefits of having one of them.

Characteristics of a bank account

Below we mention what are the main characteristics of a bank account:

• Commissions: Most bank accounts are subject to certain conditions. These vary depending on the type of account and the services they include.
• Availability: Bank accounts offer immediate availability of the money deposited. In this way, the client will be able to make a cash withdrawal at the time they deem appropriate.
• Functionalities: Every bank account allows you to make deposits, receive collections or make payments, through the account itself or the debit or credit cards associated with it.
• Direct debit : You can direct debit certain receipts such as the telephone bill, so that it is charged automatically without the need to carry out any paperwork.
• Remuneration: On some occasions, the bank offers its clients certain commissions for the fact of keeping the money deposited in your company.
• Identification code: Bank accounts are associated with an alphanumeric code. Simplifying, it is like the "name and surname" of the account and is known as IBAN.

Bank account types

There are different types of bank account that we summarize below:

• Current: It is the most common type of account, with it you have access to deposit money in the bank, have a card, make payments and receive income.
• Savings: As its name suggests, it is a bank account aimed at saving. You can always have the capital but functions such as withdrawing money at ATMs are limited. They usually offer a return for keeping the money in it.
• Payroll: It is a bank account similar to the checking account. The main difference is that the payroll is domiciled in it, the bank rewards you by eliminating certain commissions or making gifts to the owner. Within this category, we could also include pension accounts since they meet the same characteristics.
• Paid: It is a type of bank account that offers profitability to its user. For this reason, it establishes restrictions when performing certain operations.
• Children: They are aimed at parents being able to make capital contributions for the future of their children. They are used to save for college or accumulate financial gifts. They are accounts that are very limited in their functions, which is why they lack commissions.
• Youth: Aimed at young people between 14 and 35 years old, depending on the financial institution. They have low or no commissions and have no limitations regarding their functions.
• Companies: The bank accounts of companies, in addition to offering certain specialized services in them, have commissions. Said commissions can be eliminated if the requirements established by the bank are met.

Benefits of a bank account

These are some of the benefits of owning a bank account:

• Make payments to suppliers without the need to deliver cash.
• Receive income such as payroll, customer purchases, etc.
• Obtain a return if the bank account in question is remunerated.
• The money will be kept safe in a bank without having to worry about theft or loss.
• Have a card that allows you to make any type of payment as if you had cash in your pocket.
• Bank accounts help increase people’s savings rate.
• Having a bank account will also allow you to qualify for loans.

Commissions from a bank account

We explain what the possible commissions of a bank account are:

• Bank transfers : The transfers made may carry a certain fixed or variable commission, depending on the amount transferred.
• Cards: The cards associated with the bank account usually include an annual commission for having them.
• Maintenance and administration: Some banks charge expenses for maintaining the account or for carrying out specific procedures.
• Overdrawn: When a bank account is in negative numbers, the bank can charge a commission based on the amount of money associated with overdraft.
• ATMs: The withdrawal or deposit of money at ATMs may include a commission. It usually occurs when these actions are carried out at ATMs other than those of the bank where the account was opened.

Bank account ownership

A bank account can have one or more holders. In the case of being more than one, there are two modalities in reference to the actions that each of them can carry out:

• Solidarity or indistinct: In this case, any holder can carry out the procedures they deem appropriate without the need for the rest.
• Joint: All the holders must authorize all the procedures that are carried out.

In conclusion, a bank account is a product offered by banks so that their clients can deposit their money. With it, you can make payments, purchases, receive income and keep money in a safe place, preventing it from being stolen.