Qualified advisers answering your
Financial Questions
call 0800 092 1245

Current accounts

With a current account you'll get easy access to your money, and will usually be offered a debit card and a cheque book, but if not, you will probably be able to request one. You can manage your bills easily and effectively by setting up direct debits and standing orders. You will probably be able to arrange an overdraft facility if you need to borrow money.

More and more current accounts are becoming what is commonly known as ‘bundled’, meaning they have added extras that run alongside the account such as mobile phone insurance and breakdown cover. The catch, however, is that you will be required to pay a monthly fee for the account, which could be anywhere between £5 and £30 from the mainstream banks.

When shopping for a current account it is vital that you weigh up all of your needs. First of all, do you really need the added extras? Some are particularly useful, and good value too. If you go travelling a lot and need to take out insurance for example, some accounts will add travel insurance benefit that will cover all of your travelling. Mobile phone insurance is also a good one to have. Many phone insurers will charge between £7 and £12 per month to insure your device, but some current accounts will do this, travel insurance, card protection and breakdown cover, all for under £10 per month.

In terms of interest rates, this is something that is certainly important to everyone. The key is to shop around, and although current accounts are not as associated with interest as savings accounts, there are still things to look out for. For example, some accounts allow you to have an added benefit, whereby if £1000 is paid into the account monthly, you will receive elevated interest rates. If this is the account you use for your wages it is clear that this is a worthy add-on, and the best thing - it is usually free.

In the case of overdrafts, again this depends on individual needs. Do you normally need more money every month, or spend more than you earn? If yes, an overdraft probably isn’t the answer, more your problems lie with budgeting. The reason for this is that most overdrafts charge interest on anything borrowed, and you will find it harder and harder to pay what is owed back monthly, getting into real difficulties. Overdrafts are particularly useful in ensuring you can pay for extra needs that may happen irregularly, such as a car MOT or hosing repairs, but you must always make sure you are able to pay back what is owed.

There are so many current accounts out there, but whether they are free or bundled you must shop around to find the right deal that suits your individual needs.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details