Managing your money

Online banking

Most people use online banking these days to manage their money, and most banking apps and websites have lots of helpful information about their services. Below we’ve detailed some of the most common bank accounts and payment types, to give you the information so you can make good choices about your money.

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When you save your money in a bank account that amount may increase as the bank lends your money to other people, who then pay it back to them with interest, and the bank pass some of this back to you.

Current account

A current account is the most common account for managing money day to day. You can pay bills by Direct Debit or standing order (see distinction below), receive automated payments such as salary and use a debit card to purchase things and withdraw money from cashpoint machines.

Savings account

You can only make certain number of withdrawals from a saving account over a set period of time, and it not usually linked to a debit or credit card facility. You cannot get an overdraft on a savings account.


Individual Savings Accounts tend to have higher interest rates but you can generally withdraw less money per year than a normal savings account. They are designed to help you save up for bigger purchases in the future such as a car or a house.

Packaged accounts

Some current accounts offer benefits such as car breakdown cover or home insurance for a monthly fee. It is important to assess whether these additional services are worth their monthly cost before committing to this type of account.

Fee-free basic bank accounts

Sometimes a bank may not let you open a current account if you either don’t have a credit rating or if your credit rating is too low.

Find how to choose the account for you.


The term budgeting doesn’t just refer to having enough money to live in the immediate future; it’s ensuring that your financial situation means you can start to build up savings to support your future.


This is the amount of money you receive each month through wages or investments.

A Debt-to-Income Ratio tool will help banks work out the support they can provide to you in terms of loans and mortgages.

Find out more.


Your outgoings are the combined total of all the money you pay out each month, including rent, food, clothes, petrol – all of your expenses.

Compare your income to your outgoings to help you plan a budget.

More on managing your money

Financial expert Charlotte explains more on budgeting.

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