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Are you thinking of opening a current account? If so, you will need to choose your new account very carefully. The consumer current accounts market is very crowded and there are many different products to choose from, all with different features and benefits.
Here a few points to bear in mind when looking at current accounts and their features:
Minimum monthly funding
Some banks require you to fund your bank account with a minimum amount each month in order to keep the account active. Find out what this monthly minimum is and check whether you can realistically expect to be putting that amount in your account every month.
Interest rates
You may have to compare a range of current accounts to find the one that offers the most competitive interest rate.
Fees
You need to read the small print on any current account very carefully to find out whether you’ll be charged any monthly fees or extra fees (i.e. for exceeding your overdraft)
Overdraft limits
You not only need to find out the overdraft limit on a particular current account, but also any restrictions or fees relating to it. Some current accounts have an overdraft buffer, which allow you to go overdrawn on occasion without incurring any charges.
Benefits and bonuses
As an enticement to get you to open a current account, some banks will offer you bonuses and extra benefits. For example, cash back, vouchers or the chance to enter a prize draw. Most basic UK current account providers won’t offer you such incentives, just the basic bank account package.
