Get to know your bank account

A bank account helps you manage your money safely. 

If you already have one, it’s useful to understand how it works so you can use it with confidence and stay in control of your money.

What a bank account is

A bank account is a place to store, send, and receive money. You can have lots of different types of account including:

• Current account: Your ‘everyday’ account. Money goes in (like allowance or wages) and money goes out (like shopping or bus fare).
• Savings account: A place to put money away so you don’t accidentally spend it. Instead, you save it for longer term goals or emergencies.

Once you’re 16 you can open your own bank account. Having a bank account makes it easier to get paid, plan for your future goals and dreams, and manage your money safely.  

Getting to know your account

Once you’ve got a bank account, here are some key things you’ll hear and need to know about.

How a payment works (money leaving your account) 

When you make a payment, you’re telling your bank to send money to someone else.

Once you confirm it, that money leaves your account. Your balance goes down, and you’ve got less money left to spend.

For example, if you’ve got £30 and spend £10, once that payment goes through, you’ll have £20 left.

If you try to pay for something but don’t have enough money in your account, the payment will usually be stopped. That’s your bank helping you stay in control.

So it’s worth checking your balance before you pay for something.  

Ways you can pay

How receiving money works 

Receiving money is the opposite of making a payment. When someone sends you money:

• It goes into your account and shows as money coming in.
• Your balance goes up.

This could be wages from a job, money from family, or paying each other back with friends.

Ways you can receive money

When the money arrives, your balance goes up, and you’ll see it listed in your account so you can check it’s what you were expecting.

A quick safety reminder 

Never agree to receive or send money for someone if you’re not sure who or what it’s for, or if you feel rushed. It’s okay to pause, as this might be a scam and i You can find out more about keeping your personal information and your money safe on our article.

Looking after your account 

Having a bank account is a big responsibility, and mistakes can happen. That's okay.

You’re not on your own. Banks have security measures in place to help protect your money safe, but you play an important role too. Keep your details safe and always double-check before sending money. If something doesn't look right, or you've made a mistake, act quickly and contact your bank.  

If you're unsure what to do, ask a trusted adult for help.