A current account is excellent for managing your everyday finances. You can choose to receive your usual payments including wages, pensions, tax credits, or benefits into your account and configure payments to easily debit out of your account virtually any way you like.
It’s usually believed that switching these kinds of accounts takes a great deal of effort and most people don’t get a whole lot out of it. However, this isn’t always true. Many banks today have dedicated teams for switching. Therefore, if this is something that you’re considering, here are 10 helpful tips to keep in mind when choosing and managing your ideal current account.
1. Be precisely clear about what you want and need.
Not all accounts are created equal. Therefore, the best one for you will primarily depend on your money management skills and spending habits in general. The first step is to decide what you need and then do some comparison shopping online at various websites.
2. Do you sometimes get overdrawn?
Look for the kind of account that provides interest-free overdrafts if you’re prone to overdrawing on your account. However, be sure to read the small fine print in order to make sure there aren’t any additional charges.
3. Are you usually in credit?
Try to find an account that rewards people for keeping their balances in the black by paying them interest.
4. Are you generally unhappy with your current bank?
If you’re bank is giving you a headache, maybe it’s time to move on. It’s easier than you probably think and many banks will help you transfer your direct debits while offering you other pluses that may benefit you as well.
5. Think about how you want to access your banking account.
Think about how you want to access your banking account.
6. Do you need multiple accounts?
If you need more than one simple, basic account, many packaged accounts come equipped with additional extras such as breakdown coverage for a monthly fee or free travel insurance. To cover the fee, you actually have to use the benefits.
7. Don’t just assume everything is okay.
Smart people regularly check their bank statements to determine if anything appears suspicious with their account. If you notice any penalty charges on your statement, you don’t have to automatically accept it. Contact a representative at your bank to find out why the charge is there.
8. Do you ever exceed your overdraft limitations?
You can use a free budget planner in order to avoid approaching or exceeding your overdraft limit. This will allow you to quickly take action in order to avoid the penalty costs.
use free budget planner to avoid penalty
9. Look closely at any bank fees that are associated with your bank account.
Even though most banks usually impose similar fees on all accounts, sometimes they vary. Therefore, it’s in your best interest to take the time to shop around for the ideal account that typically charges lower fees overall.
10. Are you on the border of an overdraft?
Some banks offer temporary extensions if you’re on the edge of an overdraft and will cut you a break if this is the case.
Most current accounts can be accessed over the phone, online, or through a physical branch.