Get Banked!!

Posted by: Carlene O'Carroll on June 09 2015 | Tagged: Products, Services

Opening your bank account

At Scotcash you can open up a basic bank account with our banking partners RBS or Barclays. You can contact us to make an appointment to open a bank account today with one of our experienced advisors. You will need to provide I.D (this does not need to be photographic) and address verification.

Once you have opened your bank account the first step to being in control of your money is to make sure it is running smoothly. Below are some tips on how to manage your bank account:

Pay money into your account

Knowing how to pay in and receive money helps you to keep your account up to date and avoid unnecessary charges. You can pay in cash or cheques:

  • Over the counter at your local branch.
  • Deposit machines at your local branch. These machines give you a receipt.
  • By post – cheques only. Send in cheques by post using a paying-in form, which you can get from your bank – they’re sometimes included at the back of your cheque book too.
  • Pay in cash or cheques at your local branch or by post (for cheques only)
  • Receive salary, benefits and other payments automatically, which will be arranged by whoever makes the payment (for example, your employer).

Transferring money from your account

Knowing the best way to transfer money means you can make payments easily and pay your bills with no fuss:

  • You can usually withdraw cash from a cash machine belonging to any UK bank for free using your debit card.
  • BE CAREFUL!! Other cash machines, such as those inside small shops, on garage forecourts and inside nightclubs may charge up to £10 each time you withdraw money from them. The cash machine will tell you up front if you’ll be charged, so you can decide whether to cancel or carry on.
  • You’ll probably also be charged for using cash machines abroad, both by your bank and by the cash machine operator – check with your bank before you travel.

 

Top tip

Pay your utility bills automatically using Direct Debits and standing orders as you’ll often get a discount for doing so by your provider.

 

Using a debit card

Debit cards are a handy way to pay in shops, online, by mail order or over the phone.

  • Debit cards let you pay money directly from your bank account to the person you’re paying. They’re a great way to keep on top of your money – so long as you don’t go overdrawn.

Paying bills

  • For one-off payments you can transfer money using your phone or online banking. All you need are the account details of the person or organisation you’re paying.

  • For regular payments you can set up Direct Debits from your bank account. They’re great for things like paying utility bills and you normally get a discounted rate for paying utility bills by direct debit.

Which accounts can receive benefit payments?

To receive Universal Credit and other benefits, you’ll need to have a bank or building society account that can receive automated payments. The different options are:

  • Current account
  • Basic bank account
  • ‘Jam jar’ account (also called a rent account or a budgeting account)

Current accounts

Most people use a current account with a bank or building society to manage their day-to-day money. Scotcash can help you open a current account.

  • They have all the features you might need, such as automated payments, cash cards, debit cards, Direct Debits and cheques
  • You can access most current accounts through a high street branch, online, using mobile banking or over the phone
  • You can get regular statements to help you keep track of your money
  • Some accounts charge high fees and interest if you go overdrawn, and most have bank charges if there’s not enough in your account to cover a Direct Debit or standing order

Basic bank accounts

Basic bank accounts have most of the same features as a current account, such as a card to withdraw cash, and Direct Debits. The main difference is that they don’t provide an overdraft facility. Scotcash can help you open a basic bank account.

  • This makes them an option if you’ve got a poor credit history because the bank doesn’t need to carry out a credit check on you
  • No overdraft also means you can’t accidentally spend too much and get into debt
  • You may be able to arrange for regular statements (eg monthly) to help you keep track, but not all accounts offer this
  • You may still be charged if there’s not enough in your account to cover a standing order or Direct Debit

Jam jar accounts (also called rent accounts and budgeting accounts)

With a jam jar account, you divide your account into different ‘pots’ or ‘jars’. Typically, there are different pots for bills and spending and there may be a pot for saving too. You decide how much money goes into each pot by working out how much you need for your bills and how much is left over for spending or saving.

Some jam jar accounts consist of a basic bank account linked to a prepaid card. So your wages and benefits are paid into the account. You decide how much you need to set aside for bill payments then put the remaining money onto the prepaid card for spending.

Most jam jar accounts come with budgeting advice and support provided online or over the phone. They help you set up the account and decide how much money you need to set aside for bills and other outgoings each month.

  • The advantage of a jam jar account is that you can be sure that when rent day (or bill day) comes, the money will be there to cover the payment
  • You may be able to arrange text alerts to warn you if your balance is running low
  • You might have access to advice on managing your money

 

Scotcash may have a product like this that will suit your needs in the near future to register your interest for this account or for more information please contact us