With so many types of currents accounts now available in the UK, it may be an overwhelming decision choosing which account is best for you.
When considering current accounts, think of the following questions:
Are you always in credit?
Do you go overdrawn?
Are you a student or recent graduate?
Something else to consider is whether you are open to paying a fee for any extra services which an account may provide. Some of the best current accounts in the UK offer travel insurance or higher interest rates if you are happy to pay a monthly fee for the privilege.
Switching accounts is now quick easy, and – for the majority – completely pain-free. It takes seven working days, and all your incoming and outgoing payments will be moved to your new account, by your new bank.
The main types of account available are:
Basic Bank Accounts
These are straightforward accounts without many additional extras. Typically these are aimed at customers with no credit history or those who are new to banking. They will generally enable you access to services such as receiving money, getting a cash card and using cash machines, setting up direct debits and standing orders, as well as others. Basic bank accounts won’t usually allow you to go overdrawn by more than £10, if at all.
Current accounts normally provide more options and services than the Basic bank account, such as overdraft facilities, telephone and internet banking, and some may also pay interest on your credit balances. A credit check may be necessary before overdraft is made available, and you should be aware of any limits and excess fees or interest rates on an overdraft. Try some of the deals the Halifax have online.
Most student accounts have an interest free overdraft facility, free banking and an advisory service to help young people manage their finances effectively. They often offer an incentive such as cash or free rail travel to attract their young customers. Students should manage these accounts carefully, as interest and fees could still apply to their overdraft if they exceed their borrowing limits.
After completing your studies, these accounts offer a free/low interest overdraft facility and other benefits to help you manage your money as a new graduate. Graduate accounts are normally available up to 3 years after graduation.
To find out more about different types of accounts, have a look at Www.thisismoney.co.uk