Banking

There are different types of bank accounts which can be used for different reasons. 

Read our advice on getting a bank account and the different types of bank accounts available.

You can also use Money Saving Expert's guide on the Best Bank Accounts or Compare the Market's Savings and Current Accounts page to help you compare the different bank accounts on offer. These products are not endorsed by Citizens Advice Scotland but might be able to help you get more out of your bank account. 

A pre-packaged account charges you a monthly fee for insurance policies and benefits like breakdown cover. This type of account might be a good option to get cheap insurance. But, if you don’t need the insurance, a pre-packaged account won't be right for you.

If you're thinking about getting a pre-packaged account, you should first check if you can buy cheaper insurance elsewhere. If you're paying £15 a month for your bank account, this amounts to £180 per year. Instead, you could use this money to buy cheaper insurance from elsewhere. 

You can compare different banks' pre-packaged account offers using Money Saving Expert’s guide to Pre-Packaged Bank accounts.

You might opt for a free basic bank account if you have a low income or a poor credit rating meaning you can't open a standard current account. Money Savings Expert’s guide on basic bank accounts is useful if you need more information.

Credit unions are local co-operative organisations. Members pool their savings to provide each other with credit at low interest rates.

Before joining a credit union, it's important to check if they charge an administration fee for their current accounts. Credit unions tend to charge fees if they offer support with budgeting.

For example, they might offer “Jam Jar” Accounts which are specially designed to let you divide your money into different “jars” within a single account. These accounts work by setting aside an agreed amount for essential bills when money is paid into your account. This amount is then used to pay your chosen bills by direct debit or standing order. Normally the money left over can be loaded onto a pre-paid card or you can withdraw it from a cashpoint machine. 

Read more about Jam Jar Accounts on the Money Helper’s website.

The way you pay bills can affect your income, because companies might charge you extra for services if you choose not to pay by direct debit. Generally, companies will issue you with a paper bill or “invoice” and will charge a small administration fee.

Direct Debits and Standing Orders are great for regular fixed payments like your rent or council tax. 

There's a quick and easy guide on the best ways to pay your bills on Money Helper's website. 

For energy bills, UK Power’s guide to bill payment methods  explains the ways you can pay your bills and the advantages or disadvantages of each option.

The Money Helper's website has pulled together various top tips which can help you make the most out of your bank.

You can use other digital budgeting tools offered by third-party apps and software to help you track your spending, set savings goals or create a saving plan.

Open Banking allows you a chance to use your financial information from your bank with these apps. You can find out more about Open Banking on Money Saving Expert’s website.

You might be able to save money on your bills by switching to a better deal. Using Open Banking, ApTap is a free and easy to use tool to help you stay on top of all of your bills and subscriptions across all of your bank accounts.  

ApTap will automatically find and organise all of your bills to find the best deals on the market based on your spending and service usage. It can help you take take control and simply switch broadband or energy within minutes. 

Various apps offer different tools and ways to track your spending and manage your budget. You can use Which's guide to the best money management apps to help you save money.

You can get your credit report from a credit reference agencies. These are authorised companies who collect and store information on your borrowing and financial history. 

It's important to check your credit score and get a copy of your credit report. This can show how much money you've already borrowed. 

It's a good idea to check your credit report has the right details about your financial situation. 

You can obtain a free copy of your credit report from the three credit reference agencies below.

There are several common misconceptions about your credit score. 

You can read about these common myths on Experian’s website.