Offering instant access to your money, current accounts come in a range of guises depending on the bank you're with. From high interest to no interest, make sure you shop around.
Banks still believe that the best way to attract you as a customer for life, is to present you first with a current account that you are happy with. This is easier said than done in an age that is split between demands for High Street banking and Internet banking. The theory is that once you are happy with a bank’s current account, you will be more likely to borrow with them, and take out other products.
A current account will offer various flexible payment methods to allow customers to distribute money directly to others. Most current accounts come with a cheque book and offer the facility to arrange standing orders, direct debits and payment via a debit card.
Virtually all current accounts offer a pre-agreed overdraft facility the size of which is based upon affordability and credit history. This overdraft facility can be used at any time without consulting the bank and can be maintained indefinitely (subject to ad-hoc reviews). Although an overdraft facility may be authorised, technically the money is repayable on demand by the bank. In reality this is a rare occurrence as the overdrafts are profitable for the bank and expensive for the customer.
In the UK some online banks offer rates as high as many savings accounts along with free banking (no charges for transactions) as institutions which offer centralised services (telephone, internet or postal based) tend to pay higher levels of interest. The same holds true for banks within the EURO currency zone. This means that as Internet banking grows in popularity, and banks encourages away from the High Street, you’ll find a plethora of deals and opening offers, should you be looking to start a new current account. Be aware, some current accounts are only available to customers who can pay a certain amount into their account each month.
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