Banking explained: The stuff you actually need to know

It’s basically money your bank pays you for keeping your savings with them on eligible account balances. Simple enough. But there are different types of interest, and this is where it helps to know what you’re looking at. 

Variable interest rate 

An interest rate that can go up or down. 

If your savings account has a variable rate, the amount of interest you can earn may change over time. 

Bonus interest 

Extra interest you may be able to earn when you meet certain conditions. 

Depending on the account, you might need to deposit a certain amount each month, grow your balance or avoid making withdrawals. 

The important bit? Check the conditions. 

The things you need to do to qualify for a particular savings rate. 

It's helpful when banks make these easy to find and, more importantly, easy to understand. 

Because no one wants to read the fine print five times to work out how their savings account works. 

A fee some banks charge for having or using an account. 

It's always worth checking for fees when you're comparing accounts. Even small ones can add up. 

This one's important to us. 

A customer-owned bank is owned by its customers or Members rather than external shareholders. 

Bank First is customer-owned. That means our Members are at the centre of why we exist and what we do.  

That's what we call our customers at Bank First. 

When you bank with Bank First, you become a Member and part-owner of the bank. 

Okay, this isn't technically a banking term. But we think it belongs here. 

When we spoke to students, being able to actually talk to someone came up as something they wanted from their bank. 

Sometimes it's easier to talk things through with a real person. Having someone who can answer your questions can make banking feel a little less complicated.