There are bank account differences for British and Americans. People that have lived in both the United Kingdom and United States know about the difference. Many that have not traveled abroad may not know that the American accounts are better. Also, one clarification before we get started. British banks use a different name, which are called current accounts in the UK.
This really all comes down to how the banks want to earn your business. British banks may offer a few perks for new accounts, but overall the banking accounts in the United Kingdom are somewhat simplistic. They are some banks that may offer things like $100 for signing up or initiating a direct deposit, but that’s about the extent of the perks. Most of these banks in Britain have low or no interest rates to currently offer. A few of these branches have things like travel insurance, but the United Kingdom banks are typically no frills type of organizations. People that are interested in placing money into these major branches should not expect much more.
The real perks are found with the American banks. These banks have felt the sting of the recession and many of these major banking organizations will do anything to build up their customer base. This often involves perks like points for debit card use and fee waivers for customers that utilize direct deposit methods.
More of the American banks offer overdraft protection because Americans are more likely to use their debit card for the majority of their transactions. They may be overspending, but American consumers can link their savings accounts to their checking accounts.
The American banking industry is hungry for earning the respect of customers again. This is why there is a great discrepancy between the British and American banks. British banks offer a no frills type of reality for their clients because this is a part of the British culture. Lots of American banks are inclined to offer more perks because this is what the culture thrives on.
In America many people are leaving their checkbooks home. They are taking on debit cards. The problem is that American banks are completing heavily with the credit card companies. Credit card companies are giving consumers perks like gift cards for certain amounts of points. There are all types of credit card rewards programs that keep more customers signing up for credit card offers. Banks have to find some way to compete and the debit cards with reward points or the “free cash for opening a new account” offers are working. American banks are pushing these things into play and this, incidentally, makes the American bank accounts better.
British account holders do not have terrible bank accounts. In fact, the British banks are quite studious with financial affairs. The problem, however, is that the perks are low and the fees are high. Bankers that are charged fees like to feel that there are other things like rewards and cash bonuses to look forward to.
The success of the banks relies heavily on customer preference. Customers that are used to perks will lean towards American bank accounts.