10 tips on choosing a current account

If you’ve been with your banking provider for a while, you may be losing out on some great current account deals.

To help you choose the best current account for you, follow our easy guide and check out our useful tips.

See what’s available on the market

Comparing current accounts is now even easier, with all the latest products and providers all in one place.

Instead of just sticking with your present current account, it’s always worth to keep up to date with changes in the financial market.

Don’t be lured in by incentives

As the current account market experiences thriving competition, providers are trying to find any way possible to entice new business.

If a free loaded gift card or a £100 welcome seems tempting then by all means go for it, but will this benefit you in the future?

We recommend searching for providers who are offering competitive interest rates for a certain amount of time, so you can build up your finances rather than receiving an incentive at the beginning and then being forgotten in the future.

Check interest rates

Keep up to date with interest rate changes in the market, so you don’t miss out on the best deal for your finances.

Interest rates are always changing and with the new Current Account Switching Service, it’s even easier to start benefitting from them.

Research penalties and fines

There’s nothing worse than over-spending and being fined by your banking provider, especially if you’re unsure on how much you will be charged.

We all fall short some months, but it’s always a good idea to know how much your new provider charges so you don’t get a nasty surprise the next month.

Current Account Switching Service

It’s now easier to change providers with the new Current Account Switching Service, which was introduced in September 2013. The new rules mean that customers will be able to change providers without the fear of losing money or other complications that used to occur.

It will be the bank’s responsibility to redirect standing orders to your new account and you will be refunded for any money that has got lost in transaction.

Overdraft terms and conditions

If you decide you want an overdraft attached to your account, make sure you check the terms and conditions before committing to one.

Some providers offer the incentive of 0% interest for a certain period on overdrafts, but this may not apply to others.

Read the small print

Once you’ve found the current account you’d like to use, make sure you read the terms and conditions.

Although it’s boring, this highlights all the legal bits and pieces that may come in handy in future. It also states the charges and other hidden rules that will give you a better idea about using your new current account effectively.

Speak to your current account provider

If you’ve been a loyal customer with your current account provider, you could be entitled to a service upgrade.

The only way you’ll find out whether you can make better use of your current account is if you speak to an advisor.

They’ll be able to tell you what they offer and how you could potentially benefit from their new products.

Minimum monthly deposits

To benefit from good interest rates, banking provider request a minimum monthly deposit to qualify.

Again, to keep competition thriving, each provider offers a different minimum requirement so compare your monthly income to available current accounts.

Online banking

If you have access to online banking, your provider may offer current accounts especially for those who go digital.

Banks are rewarding customers for using online banking, because it offers a low-cost alternative to manage your finances, which means they’re able to give more.

Log into your account regularly, to see if your provider offers these online customer perks. 

Category: BankingMoney

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