Wednesday, April 13, 2011

Managed Bank Accounts in The UK

Bank accounts around the world: managed bank accounts in the UK

There are so many different types of bank account across the world nowadays. Here, we're going to have a look at one type of account in particular - the managed bank account… and how it might work in the UK.

There are several ways a managed bank account could work, so we'll look at just one possible way in this guide.

Managed banking

A lot of people choose a managed bank account because it helps them organise their finances and gain much better control over the money they're spending.

If you're finding it difficult to keep track of your monthly bills, or you're finding it hard to keep track of where the rest of your money is heading, you may know all too well that it's easy to fall behind and end up with bank charges for bounced payments and fees for unauthorised overdraft usage.

With a managed bank account, you won't need to worry about unexpected bank charges… but it's important to check the terms and conditions of your account first to see exactly how it works. Some accounts may charge an initial set-up fee and a monthly fee, so knowing where you stand before opening an account is vital.

How might a managed bank account work?

There are, as mentioned, several ways a managed bank account could work. One way involves a real person handling a bank account holder's money for them.

Once wages are paid into an individual's account, the company will set aside the money the individual needs to cover their monthly essential costs (bills, for example, and rent/mortgage payments).

The money left after doing this is then transferred to another account (one that is run alongside the main account), to be spent on whatever the account holder likes. They can, of course, spend this money without worrying about covering their essential costs (as they'll already have been taken care of).

So, that's just one of the ways a managed bank account could work. To find out more about this type of bank account, you could take a look at this bank account FAQ page.

Careers page of a company in the UK who offer managed bank accounts.