Current accounts
Current accounts can work best for you if you:
Shop around
Consider Switching
Think about interest
Think about charges
There are different types of current account. A standard current account usually:
- Offers a debit card, which you can use to make payments or withdraw your money from a cash machine
- allows you to make direct debits, for example to pay your gas or electricity bill
- allows you to have a cheque book
- allows you to manage your account in different ways, such as through the branch, the internet or by telephone.
- pays you interest on any money you have in your account.
- You can also apply for an overdraft facility – this allows you to take more money from your account than you have in it, which you will probably have to pay interest on. You must arrange with your bank to borrow this money or additional charges will apply and your transactions may be declined.
A Basic account allows money to be paid in and allows you to pay bills and withdraw cash. Basic bank accounts don't offer overdraft facilities and don't offer some payment types such as cheque books.
There are a number of tools available to help you make a decision when considering switching accounts, shopping around, thinking about interest and thinking about charges. Try our handy calculator to help compare interest you are currently earning with what you might earn using a different account, the BACS account switching guide for impartial advice on switching accounts or our comparison chart.
Visit the Financial Services Authority for more information on different types of bank accounts.
If you would like more information or advice when you are choosing a current account you can seek free independent financial advice here.
