09 Sep 2024
Aren’t you looking for the best bank account type for a global money transfer? So, it’s crucial to decide where to keep your money. Choosing a bank account as a fresh expat is a significant and essential step in managing your finances abroad. Opening a local or international bank account is vital if you consider moving out of the country for work. Here is a complete guide for choosing a bank account type:
A bank is a place where you can deposit and withdraw all your hard earnings at a time of need. Different types of bank accounts can serve different purposes, depending on your financial needs. Some bank accounts allow you to pay bills, while others will enable you to save money for an extended period. Following are the few different types of bank accounts:
Comparing the different types of bank accounts can help you choose the one that best suits your needs.
The current account is a type of account used for daily purposes such as paying bills. This type of account is mainly used by businessmen who make several daily transactions. The exciting feature of this bank account is its debit card, which is used for purchases or ATM withdrawals. It also provides with the check-writing abilities. Checks received from the customers can be deposited into this basic account for collection. Any commercial bank in Pakistan can easily open a current account.
A savings account is a deposit financial account used to save money you don't want to use in the present. This account pays interest on your holding money. Different banks have different interest rates according to their policies. Saving accounts are not for daily use or paying bills. They are considered investments. Whether you're saving for future needs or planning to send money to loved ones, a savings account can help you grow your funds over time.
This account refers to an interest-bearing account that has the features of both a current account and a savings account. It offers limited check-writing and provides a higher interest rate than savings and current accounts. The high annual percentage yields (APY) are its most interesting benefit. The exact amount of interest you earn depends upon how much money you have deposited or in which banks you have opened an account.
Note: You can withdraw your money whenever you want, but your bank may limit your transactions, i.e., the number of withdrawals you make in a single statement.
A certificate of deposit is a savings account that holds money for a fixed time and provides high interest. It won't allow you to withdraw your money before its maturity date. This type of bank account is best for saving purposes with a planned maturity date. CDs come in various dates, from 3, 6, 9 months to even 10 years.
Choosing the right bank account can help you in many ways. Here are tips for choosing a bank account that is appropriate for your finances.
Note: Some banks provide many other services, like discounts or extra features, that other banks do not. Take your time to consider which is best for you.
Choosing the correct bank account requires keenly investigating your financial status, future goals, and priorities. Understanding different account types and their pros and cons can help you make the right decision that will help you manage your finances wisely. Whether you want to send money online to support loved ones or manage your daily finances, choosing a bank account is vital to a smooth financial life abroad. Don’t forget to review your account regularly to ensure your banking experience.
As a new expat, the best type of bank account for you depends upon your financial needs. If you want a current account/checking account for daily life, then go for one, and if you want to save your money, then a savings account is the best option for you.
Yes, some bank accounts allow you to open an account before you arrive. However, this depends on the country you are moving to and the bank policies.
Most banks allow online money transfers. Consider a bank that offers minimum charges and fewer exchange rates globally.
Local banks operate in a single country, while international banks operate across borders.
