Opening a Current Accounts: A Brief Guide
Today, we all switch our current accounts more than ever before, and whilst we're not suggesting you switch every time you find a better deal, it is a good idea to keep your eyes open and see if your bank account could be working harder for you. When it comes to switching current accounts, the range on offer can often be baffling, but luckily for your, our handy guide will help you to choose the best account for your needs – so why not sit down with a cup of tea and take a few minutes to read our guide to current accounts?
Choosing your bank
Using online comparison sites to compare bank accounts is a great way to find the most suitable account for your needs. Websites such as MoneySupermarket.com will allow you to choose a range of options – for example, perhaps you're looking for current accounts with low overdraft interest rates, or accounts which offer travel insurance included? It's easy to compare accounts using one of these sites, and then you can head to the bank's website for more information on the account in question. Sometimes, you can even apply to switch your account online, and most of the major banks offer a switching service which will transfer all your existing direct debits and standing orders seamlessly, leaving you with one less thing to worry about!
Many current accounts offer optional extras such as travel insurance or breakdown cover – these are great if you currently pay for these services separately, but it's important not to be swayed by added extras. Make sure you check interest rates and any other information about the account on offer before signing up. It's also important to check whether there's a monthly account fee, or whether you need to pay in a minimum amount each month (usually £1,000) to keep the account open. If your income fluctuates, this could be a problem.
Whether you decide to bank with HSBC, Lloyds TSB, RBS or one of the other major high street banks is a personal decision – sometimes this will depend on the current accounts on offer, and other times you may be influenced by who your friends or family members bank with. It's a good idea to take the time to compare the current accounts on offer with each bank and see if you could save money or get a better deal elsewhere. Just because you've been with your bank for the last 10 or 20 years, doesn't mean you can't switch - switching is easier than ever before and once you've decided which account you want, you can usually apply for it in a matter of minutes, provided you have the right information to hand.