How to Find the Best Current Account

For some reason while people are becoming increasingly aware that loyalty to a particular financial provider rarely pays and are starting to ask more from the products they use, current accounts are often overlooked. If you’ve stayed loyal to your current account provider for years you may be surprised at how much you’re missing out on.

Your interest

Many of us are earning pittance on our in-credit balances with some providers paying out as little as 0.1%. Although it can be argued that these facilities are more for convenience purposes than for earning potential, when you consider that most of us hold a significant balance in our current account for at least part of the month (after your salary payment has gone in and before all of your bills have gone out!) there is no reason why we shouldn't make this money work harder.

If you rarely go overdrawn there are generous returns to be had as providers have started to offer higher interest rates in an attempt to draw in new customers. While you're likely to come across some astounding interest rates comparable to those available on savings accounts, do be careful as these often apply for a limited period and to capped balances only. So, if rate chasing isn't for you it may be better to look for an account that pays a fairer amount of interest but that is tied with fewer restrictions.

Overdrafts

While bettering your interest return is one aspect of making your current account more profitable, if you're friendlier with your overdraft that you would like to admit, focusing on reducing this cost is going to be more important.

Overdraft charges can be extortionate with heavy rates imposed on both authorised and unauthorised borrowing not to mention the bank charges and penalty fees that quickly accumulate. Going over your overdraft limit several times a month or simply holding an interest paying balance can be very expensive.

By switching to a current account that offers a manageable rate of interest and clearly stated overdraft fees you should be able to work towards clearing this debt and accumulating a positive balance. Some providers are now able to notify you by text when you are nearing your limit and while this is likely to come at a cost, if you regularly exceed your agreed overdraft it could work out a lot cheaper in the long run.