Mission 2: Bank Accounts

Meet Bobby, Chloe and Elisha…

They’re three school kids that have been set some pretty tricky homework, they have to write a song all about money.

Have a listen to this episode in which they’re talking about bank accounts…

So what is a bank account?

A bank account is basically a place where you can keep all your money.

Most adults have bank accounts and that’s where the money they get paid from their jobs goes.

You have a bank account with a bank, there are loads of banks to choose from. You’ve probably heard of some of them like Natwest or Royal Bank of Scotland.

There are plenty of banks to choose from but they all basically do the same thing, they hold and look after your money for you.

If you see your parents paying for things with a debit card then all that’s doing is taking money from their bank account and giving it to the shop.

Why don’t people just keep all their money at home?

Embed from Getty Images

Because it can be a lot of money and what happens if you lose it or it gets stolen?

Banks look after your money for you so you don’t need to worry about it.

Are bank accounts just for adults?

No!

Kids can have bank accounts too and it makes saving money really easy.

Kids can get savings accounts and you might already have one!

What makes a kids bank account different to the one my mum or dad have?

Not much! Whether it belongs to an adult or a kid – all bank accounts work pretty much the same way – they’re like a safe place to keep your money.

You may even get a debit card for your account so you can take money out of ATM machines. Some accounts only let you have a card if your parents agree.

There are a few things you might need to do to set up your account though.

You need to show some ID – so they know that you are who you say you are!

Something like your birth certificate or an NHS medical card.

But you often need photo ID too – like a passport. They’ll also need to have proof that you live where you say you do – so sometimes you need to take a bill with your address on.

Embed from Getty Images

Well that’s something your parents can help you with. In fact, you will need to take an adult with you to the bank so they can help you choose the right account.

Especially as there are many different types of accounts to choose from – some you can take your money out whenever you want, others will give you a bonus if you keep the money in the account – or even a gift!

Some accounts will only allow you to take out a certain amount at a time – or not at all! Those accounts sometimes offer better rates of interest though, the reward for saving. They add a small amount of cash into your account to say thank you for saving with them. This really helps if you’re trying to save up for something!