Managing one’s finances, or building up savings, makes it essential to have one or more bank accounts. There are several kinds, which are distinguished by their use or the number of their holders.
The current account: manage day-to-day finances
The current account, also called current account or deposit account, is used to carry out ordinary financial transactions. Salaries are collected there and the holder can make transfers from the account. Very often, the various invoices are taken from this account on a regular basis.
The holder can withdraw money from his current account at any time. To facilitate his transactions, he usually receives a bank card and a checkbook associated with the account. The management of the current account by the bank generally generates bank charges. However, some banks allow you to obtain a free current account. Moreover, current accounts do not, in most cases, allow the payment of interest. However, since 2005, some banks have offered payment for current accounts authorized by European legislation and the French administrative jurisdiction.
The conditions for opening a current account are simple. It is conditioned by the production of certain supporting documents. An account agreement, signed by the bank and the client, specifies the terms of its operation.
As its name suggests, such an account allows you to build up savings. It can finance a major purchase, pay for children’s education or even represent a provident solution, in anticipation of retirement for example. In exchange for the deposit made in a savings account, you receive interest.
There are many savings accounts. Some are regulated by the government. It’s the case of Livret A, the most popular savings product, the rate of which is set by the state. This is a tax-free savings account from which you can withdraw money at any time. Other savings accounts, following the same rules, are regulated, such as the Youth Booklet or the Sustainable and Solidarity Development Booklet.
You can choose an unregulated savings account. In this case, it is the bank in which you open it that sets its operating methods. It defines in particular the interest rates or the ceiling of the payments. Unlike regulated savings accounts, these savings accounts are subject to tax.
The term account represents another category of savings account. The main difference with a traditional account lies in the fact that the sum deposited is blocked for a certain period, defined, with other elements, between the bank and its client. It is at the end of this period that interest is paid to the account holder.
Finally, the securities account, together with a current account, makes it possible to invest in shares, bonds and other transferable securities. The holder of a securities account can open others, without being obliged to respect a ceiling. Capital gains realized on the sale of securities, within the framework of the securities account, are subject to tax.
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Bank accounts and their holders
Indeed, bank accounts also vary depending on the person or persons likely to open the account. This is how a natural person of legal age, able to exercise his rights and obligations, can open an individual bank account. To carry out this operation, the person concerned must provide certain identity documents and present proof of address.
The joint account, on the contrary, is opened by several people. It is often used by married couples. The joint account allows each of the holders to carry out the various financial operations related to the operation of the account. This presupposes a certain mutual trust on the part of the co-holders. Indeed, they are jointly responsible for the account. This means that in the event of debts, for example, the bank can contact each of the cardholders to resolve the situation, even if they are not the source of the problem.
Similarly, the undivided account must be opened by several holders. But its principle is different. Indeed, the operation of the account does not call on any principle of solidarity. This means that each banking operation must receive, before being carried out, the agreement of all the co-holders of the account. This type of account is often opened when opening an estate.
Finally, minors can, under certain conditions, open a bank account. It then functions under the supervision of the parents or the legal representative of the minor. Parents, or legal representatives, can however authorize a minor, aged at least 16, to manage his own bank account. In this case, he will only be able to carry out certain operations, defined with precision. Finally, emancipated minors can open and manage a bank account under the same conditions as an adult. To do so, they must provide proof of their emancipation.