Compare Current Accounts
Whether you’re applying for your first current account, or would just like to switch current accounts, there are plenty of options to choose from.
Having a current account can be incredibly useful for accessing a whole range of financial services, but it is most commonly used for managing your income, paying bills and making purchases. It is a convenient way to track your personal finances from month to month, whilst keeping your money safe at the same time.
What is a current account?
A current account is provided by a bank or building society as a secure place to store money. It is most often used for depositing wages from an employer, making regular purchases using a debit card and paying for household bills through a direct debit or standing order each month.
Having a current account allows customers to track their personal finances effectively, making sure they have enough in their account to cover regular payments, as well as spend money when required.
Which is the best current account for me?
Whatever reasons you have for opening a new current account, you will always find an option to suit your circumstances. It’s worth understanding which current account is going to benefit you the most before applying for one, especially if you’re opening one for a specific purpose.
Most current accounts actually have multiple uses and are generally good to have for anyone looking to keep their money safe. The account provider will often provide certain perks just for owning the account, so it can be worth checking those prior to making a final decision.
What current accounts are available?
As much as current accounts all perform the same function, there are still different options available that will suit your particular circumstances. Whether you are a full-time worker, still in education, have a family or all of the above, you will find a current account to suit your purposes. They include:
- Standard current account – a current account offering all the standard features including the use of a cheque book, ability to make transfers, cash withdrawals and a debit card to make purchases on
- Basic current account – you can pay in or take money out, as well as spend using a cash card, but you might have limited features or perks compared to a standard current accoun
- High interest account – the same as a standard current account but with a high rate of interest, meaning you can earn money depending on how much you have in the account
- Packaged current account – the same as a standard current account but with additional features such as free insurance or free breakdown cover
- Current account with an overdraft – an overdraft facility allows you to spend more than what you have in your account, appearing as a minus figure on your balance. The account provider may charge you a daily fee for using the overdraft, until you manage to get your balance above £0
- Student account – specifically made for those still in university or college education, this current account often comes with an interest-free overdraft facility to use at your leisure, along with other perks applicable to students
- Bad credit current account – for those with bad credit who would still like to open a current account and possibly improve their credit score
- Under 18s account – these accounts are ideal for those who have never had a current account before and would like to open their first one
Which providers offer current accounts?
Most major banks and building societies will offer current accounts, allowing customers to deposit their money and track their money using online banking.
Depending on the account provider, you can expect certain benefits just for having the account open. It’s worth doing your research to find out which one would benefit you the most.
Can I get a current account?
Since you aren’t borrowing money, the risk for allowing someone to open a current account is relatively low. However, if you have a bad credit rating due to missing payments, being declared bankrupt or having a CCJ, chances are you will struggle to be accepted.
If you don’t know it already, you can find out your credit score by applying for a credit report. This will allow you to see a snapshot of what major lenders will see when considering your application and if your credit score is bad, it will help you improve it.
Having a poor financial history won’t necessarily stop you from getting a current account though. A basic current account or bad credit account will allow those with a poor credit score to still deposit money, but there might be limited features compared to a standard current account.
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