14 October 2022
For most people, our current bank account is just something that is in the background, sorting out all our income and expenses. We might have a range of options like a debit card, credit card (See separate article), online banking, contactless, automated payments etc, but basically the current account is just “there” and we pay little attention to it.
Whilst we often have times when we moan about our bank or account, we generally don’t do anything about them, let alone move to another one. I have been with the same bank since University, 42 years ago and had the same joint account since I got married 30 years ago. In that time the bank has made loads of mistakes but it just seemed like too much hassle to change.
However, at this time of serious cost of living issues, we should maybe have a look at our bank account as there could be ways it could help us.
Choose the best type of current account for you
When it comes to choosing the best current account the first thing to think about is what you want your current account for? What do you need your current account to do for you and your lifestyle? What are your personal and financial goals? Different current accounts will have features designed for different types of customer, which do different things for you and help you in different ways:
Rewards and Cashback Accounts
You will earn cashback or rewards when you spend money using the debit card linked to it or on certain monthly bills, such as your mortgage or utility bills. These accounts charge a monthly fee but can help boost your income if you choose wisely. The cash paid back is often only small amounts at a time but it does build up! Comparing cashback benefits is the best way to find the right deal for you.
Packaged Accounts
These are aimed at customers looking for additional extras. These might include travel insurance, mobile phone insurance, breakdown cover or cashback. This type of account often comes with a monthly or annual fee, so you’ll need to make sure this works for you.
Student accounts
A student account tends to offer the best deals on things like overdrafts, which is an option my four children used regularly whilst they were at University! This gives you more flexibility and makes it easier to pay off any debt. It also saves you from accumulating compound interest.
Graduate bank accounts
The best graduate bank accounts are designed to help graduates pay off overdrafts built up at university. Many offer interest-free overdrafts for up to three years, along with exclusive deals on holidays, events and insurance, for instance. Some accounts charge monthly fees, so watch out for these when you compare accounts.
