Most people stick with the same bank and current account that they had as a child. However, with the hundreds of accounts out there, you could be losing out on hundreds of pounds each year

What is a current account?

A current account is a place where you can store the money you will need on a day-to-day basis. Most standard accounts offer a cash card or debit card, and a cheque book with their current accounts. Many also offer e-banking where you can see the status of your account online and can change or make payments online, and also view balances and recent transactions. If your credit history is not very good, you may be offered a basic account. These will usually just offer you a cash card – not a debit card – and there will be no overdraft facilities.

Although you should put any spare cash into a Savings Account, you should still look for the best interest rates on your current account to earn the most interest on your cash. If you have an overdraft facility which you use regularly, it is also worth looking for a better deal to ensure you are paying the cheapest rates.

What account features should I look for?

If you know that the cash in the account is going to stay at roughly the same amount, or exhibit a little growth, take advantage of high interest rates. Some of these however, may only be for a set period of time, after which the rate may drop. Others may only offer good interest rates on certain balances on your current account, so check all the terms and conditions carefully on your current account to ensure you are getting the most out of your money.

If you know that you do sometimes spend a little more than you should,  look for an account with good overdraft facilities. If you can avoid going into your overdraft, then do! Some accounts will offer free overdrafts on an interest free basis up to an agreed limit, whilst others may provide a rate for a set period of time. Pick the one which suits your finances best.

You may also want to check what facilities your account offers. Although most will offer debit cards now, check if the account offers online banking, cheques, a 24 hour service and how often you receive paper statements.

Watch out for special one-off bonus incentives that may be offered – some accounts will offer cash, breakdown recovery or insurance policies for free. Make sure you weigh up the cost of the incentive versus the benefits of the account itself.

Click here for a list of the latest current accounts.

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