A current account is a contract that governs a relationship between a client (called the account holder) and the bank. One can easily manage money with a current account. Customers can deposit their savings in a bank, the bank safeguards the money and allows you to use account services such as the deposit of salaries or pensions, rent, bill or rate mortgage payment. Customers can deposit and withdraw money from their checking account at any time through the use of checks, cash, credit cards and internet services offered by the bank, such as online bank transfers. A current account can be opened at the front counter inside a bank or on the Internet through online banking service. In either case, the delivery mode of the service changes but not the product or its cost. Banks that operate on-line may in some cases have cheaper rates.

The costs of the current account are determined by a fixed fee, expenses for registration and for the execution of individual operations. The customer also pays for postage for correspondence. A bank can identify a current account via an international bank account number called an IBAN. This is used to safely transfer money between customers of different banks. The IBAN is indicated on a bank statement along with the periodic movement of a customer’s money. A current account is a permanent contract with no expiration date, but a customer can close the account exercising the right of withdrawal. The difference between money paid and expenses incurred defines the account balance. If a customer’s withdrawals are of a larger amount than the account balance this is called an overdraft or the account is “in the red”.

Deposited money will earn interest which varies according to the contract with the bank. The annuity is generally very low and there are different types of accounts that can accrue interest from their savings. A deposit account operates in a similar fashion to a piggy bank. The money paid into the account is blocked from withdrawal for a certain period of time and, in return, the bank offers higher interest rates. A current account is a safe service. The main risk involved is the possibility that the bank will not be able to pay, in whole or in part, the balance available to the customer. For this reason, banks participating in the guarantee system, Interbank Fund for Deposit Protection [FITD], ensure each account holder a limit of up to 100,000 Euros. Other risks may be related to the loss or theft of a debit card, identification data and keywords for access to the account on the internet, but these risks can be minimised if one is prudent.
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