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Insights on money, career and trading

The 3 Basic Essentials Any Current Account Should Have

Posted on November 1, 2013 by Daniel at 5:38 pm

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Current accounts are used by millions of people in the UK in order to serve their daily financial needs. Different banks and institutions offer different incentives with their current accounts, but there are definitely three basic essentials you should be looking for when you are ready to choose a bank. Whether you’re in the black every month or living out of your overdraft, you shouldn’t consider a current account that doesn’t have any of the following options.

Low Monthly Charges and Fees

Some banks have monthly charges for using their current accounts. This can range from a basic fee that is waived for certain customers to around £10 a month. Other current accounts may have fees for going into your overdraft or for direct debits. These can be quite steep and end up costing you dearly. However, if you have a good credit history and have savings, banks could provide you with a current account that has low monthly fees, no monthly charge for use, and a planned overdraft of a certain pre-agreed amount. You can even earn interest on your money if your account is in credit. In an economy where every pound counts, you shouldn’t spend hundreds of pounds a year just for the privilege of using a current account.

Competitive Interest Rates

This applies not only to when your account is in credit, but when you are in your overdraft as well. If hefty interest rates are levied when you are in your overdraft, then you may want to consider taking your money elsewhere and open new bank account. You should do the same if your bank does not offer a decent interest rate on your account when it is in credit. Some banks are offering competitive interest rates on people who don’t go into their overdraft as well as pre-agreed overdrafts so that you aren’t charged for occasionally going into the red. Switching to one of these current accounts can save you a great deal of money.

Identity Theft Protection and Security for Online Banking

Regardless of the type of current account we choose, we all need protection against identity theft and secure way to do banking online. Most banks will offer 24/7 fraud protection services either in Britain or abroad. Make sure that the bank that is offering you a current account provides round-the-clock fraud protection as well as a secure online banking facility. While the extra keypads and passwords might be confusing, keeping your money safe is worth it. That’s not to say that you can abandon your senses if you are covered. It’s better to be safe rather than sorry.

No matter what sort of current account a bank offers you, they should at least be able to provide these three essentials. If they cannot guarantee them, look for another bank or financial institution. A current account gives you access to your money every day – don’t risk paying more than you have to just to pay your bills and live your life.

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Insights on money, career and trading