There are two ways of looking at it.
Say you are an ant sitting on the rim of the bucket, which is being swing around in circles. You will feel two forces acting on you: gravity [mg], whose direction rotates around in a circle as the bucket rotates, and the centrifugal force [mv^2/r], which always points toward the bottom of the bucket. The water in the bucket also feels these forces. You expect the water to rise out of the bucket if the net force on it is upward, which could happen if the bucket inverted and the gravitational force is stronger than the centrifugal force. On the other hand if the centrifugal force is always stronger than gravity the water will always feel a net force pushing it down into the bucket, and will stay in. So you can compare the magnitude of the centrifugal force and gravity to see what will happen.
At the critical speed, v^2/r = g, the acceleration of the bucket at the top of its arc is equal to gravitational acceleration, so you don't have to apply any force with your arm at that point, the bucket just sort of "floats" through the top of the arc. Perhaps you have experienced this.
Re: your question about velocity: An object's velocity points along the path it travels. So the bucket's velocity always points along the circle. For acceleration I like to think of two cases. If the acceleration is directed along the path of travel, it speeds up or slows down the object. If the acceleration is directed perpendicular to the path of travel, it changes the direction of motion. If you are swinging a bucket around a circle at a constant speed, the speed never changes, so the acceleration is wholly perpendicular to the direction of motion, with no parallel component.