Direct Debit Purpose: Best Account to Use for Transactions

Banks offer several bank account types. They’re trying to capture every possible customer to maximise their business and minimise their fees. When you obtain a bank account, it’s important to be aware of its purpose. Business bank accounts are meant for business transactions only such as paying off a business loan. Most business bank accounts are transactional.

In terms of personal finance, there are still a variety of accounts. Individuals with high balances are offered accounts that cater to maximising those balances. For example, they’ll receive a favourable interest rate that grows their funds if they maintain a certain balance.

Savings accounts are only meant for savings. These accounts often offer an interest rate to grow the funds. They’re not meant for direct debit purpose transactions. Savings account balances tell a bank how much money they have in reserve. To help them maintain that reserve, they pay you a tiny fee to keep your funds saved.

To set up your mortgage repayment transactions, be sure to use the appropriate account. One of our loan specialists will go over this information with you before the loan closes. We want to ensure you get started on the right foot.

Direct Debit Purpose Transactional Account Conclusion

It’s important to use the right bank account for direct debit purpose transactions, such as monthly mortgage repayments. By using the right account, you avoid delays in your payments, which can snowball and have a negative ripple effect. If you need help, our Mortgage House loan specialists point you in the right direction.