Find Bank Accounts for your Personal Needs

Current accounts are a popular product and are an essential part of our financial lives with most people in the UK having one. They provide an instantly accessible place for your money helping you manage your money on a day to day basis. They are usually the place where your salary is paid in or any benefits go to. You can pay people from this account, set up standing orders and withdraw money from cash points. Setting up standing orders and direct debits from a current account for regular payments you have to make like bills means you do not have to worry about missing payment deadlines. Most accounts will also come with a chequebook and a card that you can use to withdraw money and make payments easily. Some current accounts also offer interest on the money you have on the account, although the rates are often lower than on a savings account.

The way current accounts work is you pay your money in and out through a variety of methods, through branches, over the phone, online or at your local Post Office. With a current account you usually receive monthly statements through the post or most offer online statements. Statements show all your transactions and what money has come in and gone out and whether you have received any charges. Online banking is a great feature of many current accounts. Internet banking is fast, safe and convenient. You do not have to travel to your nearest bank for many basic services and you can access your account 24 hours a day. You can also access your statements instantly, make transfers quickly and schedule monthly payments to be made out of your account automatically.

Current accounts are designed for your everyday money needs in mind and the right account will depend on you and your requirements. You should ask yourself whether you are usually in credit, if you are often overdrawn, whether you need 24 hour a day banking and if you are interested in extras such as travel insurance and breakdown cover. There are special accounts designed for students with exclusive offers geared specifically towards students such as interest free overdraft facilities and free railcards. Some current accounts come with a range of additional benefits, such as types of insurance for a monthly fee. You may also be given discounts for other services, for example sending money abroad. Many bank accounts offer incentives with their accounts such as free gifts and vouchers but do not just be drawn in by these. Without these does the account still offer everything you are looking for?

The market for current accounts is competitive because they are such popular products. With so many vying for your business you should research thoroughly to find the best deal for you. There are hundreds of accounts to choose from. You should think about the things you’ll be using the account for. You may want to choose an account that can be managed online or via the phone and whether it has a 24 customer service line. Age restrictions may apply, you can usually open an account quite young but you may not have full access to all the benefits. Please note that you will have to provide some identification to open a current account which can include a passport, and proof of your address such as a bill.  You may also find that you need to pay in a minimum amount each month to qualify for certain features such as particular interest rates.

Some current accounts come with an overdraft facility which is essentially borrowing money from the account provider. If you exceed the available balance in your account and go into a negative balance, then you enter your overdraft. Some accounts may offer overdrafts on an interest free basis. However, you should watch out for charges as some banks may charge you for this facility and rates can vary. If you do not have an overdraft facility and you go into a negative balance you should expect these fees to be much more expensive. Don’t spend money you don’t have in your account without arranging an overdraft. You need to make sure you do not go beyond your overdraft limit or you will face costly charges which can easily mount up.

What you need to know

-          When choosing a current account think about the type of account you need, whether you are offered an overdraft facility and how much it will cost and if there is not overdraft how much it will cost to go overdrawn.

 -          To avoid charges you should know how much money you have in your bank account, keeping an eye on all what is coming in and all your outgoings.

  -          Watch out for any hidden charges with some account providers. You could be charged for duplicate statements, banker’s references, status enquiries and access to money or services abroad.

 -          Don’t be afraid to switch current accounts if the charges are too high or you don’t think you are getting a good deal. Most people tend to stay with the same bank but by switching accounts you could get access to better rates and offers. Switching your current account is simple nowadays.

Saving money for the future is becoming more and more important for people in the UK. If you want to put money aside then a savings account is where you can safely put your money, where it will earn interest over time. Savings accounts are a really easy way of growing your personal fortune and there is little risk involved. People put money away for any number of reasons: It could be that you want to save for something in particular like a house, car, a holiday or wedding, your children’s future, or it could be that you want to put some money aside so you are covered should anything unexpected happen like you lose your job or need to pay for emergency home or car repairs. Savings accounts are a great way of saving for the future and being prepared for any unexpected emergencies.

You need to find an account that suits you so you will get the most out of your money. When choosing an savings account consider firstly how much you want to save for, for how long and how much money you can afford to save on a monthly basis. When researching the market look at whether you need a certain amount just to open the account. One of the most important factors to consider is the interest rate that you will earn on your money and this should be a priority when comparing different accounts. Think about whether you want a fixed interest rate or if you don’t mind for it to vary. You may also be given the decision as to whether you want the interest paid monthly or annually.

It can be very convenient to open a savings account with the same providers as your current account because you can manage your everyday expenses through your current account and quickly transfer money into your savings account. However, you may find you could be making better savings elsewhere. Another thing to watch out for is any fees that occur for using the account as some providers may charge you for withdrawing cash from a cash machine or an annual fee just for using the account.

As with any account, it pays to shop around to find the best deal especially as not all accounts are the same. Your lifestyle and the way you manage your finances should determine the right account type for you. The best way to find an account is to compare them online through sites like Which Way To Pay, an unbiased and independent comparison site, which offers user friendly and comprehensive comparison tables. Make sure you compare all the features of different accounts including the interest rates, weighing up the pros and cons of each one to come to the right decision for you.