Why Might You Switch Your Current Account?
Current Accounts are an essential part of our everyday financial lives. From paying our mortgages and bills to receiving our salaries, these accounts are at the hub of our finances.
It's somewhat strange, then, that while many of us pursue the best credit card deal or highest savings rate with much enthusiasm, we don't tend to look at current accounts in the same way, with a substantial number of people sticking with one account for years at a time, or even for life.
This could be a mistake!!
The current account market has been hotting up over the last few years, especially since the introduction of online and direct banking, and there are some great deals available if you take the time to look around. You may well be losing out by sticking with the devil you know!
What to look for in a Current Account
As well as the standard facilities such as a chequebook, a cash card, a debit card, and free direct debits and standing orders, there are several other features to look out for.
- In Credit Interest: You really should be getting a decent return on your in-credit balance. The days of a nominal 0.1% rate should be long gone. You should be getting at least 2%, with some banks offering 5% or even higher.
- Cheap Overdrafts: Many of us need a buffer zone at one time or another, and while you should expect to pay something for an overdraft, being stung by high fees is another matter. Look for an account that has a fee-free overdraft facility with a reasonable interest rate in the single figure range.
- Cashback On Debit Cards: We're all familiar with the concept of cashback on a credit card, but now a growing number of banks are offering this facility on debit card usage too, which could amount to a tidy little sum if you use your card a lot.
- Account Opening Bonuses: Some banks will try to tempt you with an offer of £50 or so deposited into your account when you open it. In some cases this is little more than a gimmick, given the amount of money which will pass through your account over its lifetime. However, all things being equal, it could sway the balance in the choice between to otherwise similar accounts.
So. although few people would get excited about the prospect of comparing current account features (except, of course, bankers), it's pretty plain to see that there's more to your choice than meets the eye, and switching your account could be a profitable move.
