Do I need a Bank account as well as an Instant Access Savings Account?

Bazlovejoy

Hi Guys

I was all ready to open an Instant Access Savings Account and plonk all my money into that (after CASH ISA) and manage my daily funds from that account, then i started reading about bank accounts. Im not really sure what the difference is except savings accounts have alot higher interest percentage. Do I need a Bank account as well as an Instant Access Savings Account? Is there any benefit to having a Bank account as well as a Savings account? I dont require overdraft facilities.

Thanks,

Baz

isofa

Bank accounts will give you a cheque book, debit card and other facilities such as standing orders etc.

Most instant access savings accounts (especially those which are internet only) may only give you a subset of these features or even none at all.

Most branch based instant access accounts are managed by a passbook, you take it in to pay in money and the same to withdraw, or have cheque written out in a specified name. Some branch ones may provide you with a cash/ATM card, but not a debit card etc.

Internet only ones, usually come with nothing, you can transfer money in and out (via either BACS or Direct Debit), but nothing else.

a7man

Some savings accounts have restrictions on withdrawal and requirements for you to 'qualify' for the higher interest. Generally a deposit/ current account should be used for daily spending money with surplus going into savings.