Current Accounts: How do they Work and What are the Right Accounts for you to Open?
All Lebanese banks give customers the option of opening a current account, which is also known as a demand deposit account. These accounts form the bulk of daily transactions: Deposits, withdrawals, and transfers. Such current accounts also target all types of customers: Businessmen, students, workers, etc.
Current accounts allow the account holder to deposits and withdraw money anytime. However, holders of these accounts do not get interest on their available balance which could be to your disadvantage if your account holds a reasonable amount which you do not use regularly.
Various advantages of current accounts:
Online Banking: Managing your account through the net
Bill & Salary Domiciliation: Your salary is directly transferred to this account, and your bills could be automatically paid
SMS Service: Staying up-to-date with your account and transactions
Debit Cards: Using your account to pay in shops & public places, withdraw money through the ATM, pay online, etc.
Checkbooks: Writing checks in order to facilitate payments from your account to other people
Many banks in Lebanon do not require an initial amount for activating a current account, though some others may require a minimum amount.
There are also types of current accounts that Lebanese banks tailor for specific needs: Wedding accounts, accounts for emigrants, accounts for youth and teenagers, etc. These packaged accounts – as they are generally called- target specific people and are better adapted for their needs.
Features of packaged accounts vary from an account to another: Account charges, minimum limit, services and benefits, etc. all depending on the typical profile of the beneficiary.
In addition some of these accounts have two main advantages over ordinary current accounts: The possibility of getting return from interest rate and/or of benefiting from an overdraft facility.
An overdraft facility offers you additional flexibility by allowing you to withdraw more credit than the available balance in your account, in a form of a small loan, which you have to pay with an added interest later. As for the interest rate paid to customers on current accounts, it is usually lower than the rates in savings accounts.
Packaged accounts benefits also differ between banks in Lebanon. Some banks are known to have higher interest rates but may charge greater monthly fees than others; other banks might give low interest rates while providing more services and rewards such as insurance, points, miles, etc.
Choosing the right packaged account is important to achieve the highest benefit. For example, a packaged account for a student is very different from the one tailored for entrepreneurs. That’s why you should compare available accounts and their features before choosing the one that suits you.
The comparison method could be a very valuable tool to use: Visit bnooki.com where you can compare between current accounts and packaged accounts across many Lebanese banks.
You can also check bnooki.com to compare accounts and benefit from the team of experts that is available to help and provide you with the adequate loan or account advice free of charge.
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