Current Accounts
With so many Current Accounts to choose from, just where do you start? Do you opt for the same account your parents have or do you put some effort in to find the best deal? As savvy savers, we always shop around. Here’s what you should look out for & how you can get the best deal too.
Current Account features to consider
Interest Rate
Let’s face it, if you don’t choose an account that gives you something back, you may as well keep your money under the bed. Make sure you research each account fully though, as there can be a big difference between the best and worst rates. The best rates are often with accounts that have a minimum deposit of £500 – £1000 per month. Beware though, before choosing such an account, make sure you meet the criteria as the ‘default’ interest rates can be extremely low.
Overdraft
If you regularly ‘dip into the red’, an account with an overdraft is a good idea. Some accounts will offer interest-free limits, sometimes of £100 or more. Go over that limit though & you can be hit with all sorts of charges: arrangement fees, usage fees, transaction charges…the list goes on. It is therefore wise to check these fees thoroughly before making any decisions.
ATMs
This comes as standard with most accounts, but it’s worth making sure you can use cash machines. Be sure to check that withdrawals are free too. Again, this is the case with most accounts, but if you don’t check, you could end up with an account that charges you every time you make a withdrawal.
Online Banking
If you want to be able to manage your account online, then internet banking is a must. You’ll find this feature on most high-street accounts & some may even offer accounts that are run entirely online. These ‘online-only’ accounts often offer a better rate of interest or other exclusive features, so it’s worth considering.
On the face of it, most accounts look the same. Most will offer all the features mentioned & perhaps more. The key is reading the small print. An account with a higher rate of interest, a free overdraft & free withdrawals at cash machines can save you a packet compared to a low interest, fee charging account that may look the same at first glance.
If we’ve said it one, we’ve said it a thousand times. . . Shop Around!!!