The world of banking and finance is one that is undoubtedly complicated. With so many accounts available, the choice is often overwhelming. For everyday banking, a simple current account is ideal.
A current account is described as an account in which you can withdraw money without giving notice to your bank. This account is usually one that is used frequently. You can put money into it when you choose and likewise, you can withdraw money when you see fit. Accessing your money is simple too. You can use your debit card, either to take money from a cash point or to pay for your goods, and you can set up regular standing orders for money that is paid out on a regular basis.
A current account is available to almost everybody. Please do bear in mind that if you have a bad credit rating, have outstanding debts and loans or have an IVA (Individual Voluntary Arrangement) against you, this may limit your options and may make it more difficult to open a current account. The options available to you will be limited.
However, with this in mind, it is the perfect option for easy, day-to-day banking.
Current accounts are available from all high street banks, although it is increasingly difficult to find banks that have good rates on interest on their current accounts. Of course, rates of interest do vary from bank to bank. Clydesdale Bank have one of the most competitive rates for interest on current accounts, so it is worth having a look on their website.
As saving rates are at their lowest, it makes good financial sense to invest in a bank account that makes your money work for you. It is important to research the options available to you to ensure that your money is working hard. With this in mind, it is vitally important that you are aware of how much money should be in your account at any given time in order to gain high interest. Should you not have a certain amount (as outlined in the banks terms and conditions), in your account, then you may not be entitled to the rates of interest offered. Always do your research to you are aware of any clauses, terms and conditions that the bank may have on your current account and do check the small print.
Current accounts often come with a wide variety of perks. These can range from free travel insurance; breakdown cover and home insurance. Do bear in mind that these are chargeable extras but by in large they are charged at a considerably lower rate.
When choosing a current account it is nearly always advisable to check what the rates are for overdraft charges. While, in recent times, overdraft charges have become regulated, it is senseless to lose your hard earned cash over something as simple as not having a pre-agreed overdraft limit. Again, the interest rates on overdrafts can vary, so do check with your bank or research beforehand.
Choosing a bank account is easy. Simply do your research to make your money work for you.