SELECTING THE RIGHT CURRENT ACCOUNT

Selecting The Right Current Account

How to pick a current account
Even though it's probably the most widely-used financial product, most of us don't put much effort into choosing our current account.
Our tendency to neglect this important part of our finances could be of huge detriment to our monetary situation and banking satisfaction.
Have you ever switched?
According to research from ‘First Direct’, a shocking 44 per cent of consumers have never switched their current account. Many simply sign up as a child or young adult and then never bother to think about it again.
Even though savvy customers today are increasingly harnessing the power of comparison websites and other tools in order to get the best deal on their utilities, switching gas and electric providers frequently for the cheapest tariffs, most are failing to do the same with their current account.
The benefits of switching
Which bank and which type of account you have are likely to have a significant impact on your everyday life, but consumers are seemingly willing to put up with substandard service or poor benefits despite the variety of options on the market.
It's not true that all current accounts are the same - making the effort to shop around and sign up for the one that works best for you could make your financial life more convenient and profitable.
Overdraft facilities
Many current accounts come with an overdraft facility, and using this responsibly could help you better manage your finances. It is particularly useful as an emergency safety net for people without the savings to accommodate unexpected expenses.
Applying for an account which gives you access to funds at a low interest rate could be one of the most affordable ways to take advantage of credit when you are in a tough situation. The amount you qualify for and the fees will depend largely on your credit history.
Customer service
Have you ever found yourself waiting for hours in a call centre queue when looking to get information about your account? You're not the only one. If you're dissatisfied with your provider, why not take action and which to one with a better reputation?
Barclays, HSBC, Lloyds and the Royal Bank of Scotland attract the most customers in the UK, but research from Which? shows that first direct has the highest customer satisfaction score for current accounts at 92 per cent.
The likes of Smile, The Co-Operative Bank, The One Account, Nationwide BS, Intelligent Finance (IF) and Yorkshire Bank are also rated highly, so don't discount the smaller companies when picking your current account.
Added benefits
The benefits which come with a particular account can have an impact on your everyday life - for example, do you visit the bank frequently and require a provider with plenty of local branches?
Even in the tough financial climate, you can still take advantage of interest payments on current accounts. They are rarer, but some leading banks will offer you annual equivalent rate (AER) of up to five per cent.
David Black of Consumer Intelligence told Santander: "There are some very competitive offers around especially in terms of credit interest, where, almost incredibly, some of the accounts are paying better rates than many savings accounts."
You should also look at things such as internet banking access, debit card fees and minimum monthly payments depending on what is important and applicable to you. Make sure to look at everything and make a fair comparison - don't just be lured in by an account opening incentive.
Switching is simple
Many people are put off from switching their account due to the misconception that it will be difficult and time consuming. However, many banks offer a switching service that quickly and conveniently moves your account and the associated direct debits.
Some providers will even close your old account and let your employer know the new details - check each bank's website to find out about the service they offer. Switches are usually completed within ten working days.
Where to compare
You can of course look through bank's websites, perhaps using the Which? survey results as a guide, in order to find a current account that suits you. However, there is also the option to harness the power of comparison websites.
Compare the Market, MoneySupermarket, uSwitch and many more have tools which can help you to find the most suitable financial product quickly and conveniently. Before making any applications, make sure to thoroughly read terms and conditions.
With the help of Debt Free Direct, Stef overcame her financial difficulties and now writes articles to help people stay on top of their finances.