Current Accounts

Whether you have an existing current account and are wishing to switch providers, or if you are on the lookout for your first account, you can find a range of options in the chart below. Current accounts provide an ideal way to manage everyday money, such as your salary/wages, paying the bills and keeping tabs on the household budget. Before you pick an account, make sure you compare the main features of each one. Take a look at the rates – is there interest paid on credit? What rates are charged on overdraft? Will you benefit from any additional features? What are the criteria for applying for the account? It doesn't matter if you are new to current accounts, as banks must explain anything you don't understand clearly and thoroughly.

Current Accounts provide the most common place to keep your money in the bank

What is a Current Account

Current accounts are the most common form of bank accounts. A current account allows you to take out money from a cash machine, transfer money to other accounts and earn interest on your cash. Current accounts allow you to closely control your money. You will receive bank statements so you can track exactly where you are spending your money and what is going in and out of your account. You can also set up standing orders and Direct Debits from a current account for the regular payments that you have to make, like your mobile phone bill. This means that you won't have to worry about missing any payment deadlines as your bills are paid automatically.

Points to consider when getting a Current Account

It is important to consider what you want from your current account. Can the bank provide you with telephone and internet banking? Can you access your account 24 hours a day. Different bank accounts will offer different rates of interest so look into this carefully. You may also want to make sure that there is a 24 hour customer service line. Some banks will offer gifts if you open an account with them but don’t be influenced by this. Make sure that the bank account you opt for is the right one for you.

Most accounts will give you a card that you can use to withdraw money through a cash machine, but you may not receive a debit card or a cheque book that you can use to pay for goods until you reach 16. You'll also be paid interest on your money, depending on how much money you put into your account and how long it stays there. When you're choosing your account, the rate of interest is an important factor to consider, but if you do want to save your money, you'd be better off looking at savings accounts instead of current accounts.

Applying for a Current Account

It used to be that current accounts could only be opened in the branch of your choice. However, now you can apply for current accounts online. If you have any questions make sure that you call the bank to get them answered before you apply for the account. You may need to provide the bank with a passport and birth certificate in order to open an account. Essentially you need to prove who you are, prove where you live, prove student status, if relevant, fill in an application form, and in some cases pay some money into your account.

What the bank will provide you with if you have a Current Account

Your bank will give you information on how to run or manage your current account. Account features differ, but typical procedures and documents you'll use or receive may include: Documents/cards, a cheque book and/or cash or debit card to make payments or get cash, paying-in slips to pay in cash or cheques, monthly, quarterly or yearly bank statements.

You should also be able to set up direct debits or standing orders (automatic transfer arrangements) to pay bills and make other regular payment. You can set up BACS (Bankers' automated clearing service) payments to receive regular payments, like salary, pension, benefits or investment income direct into your account. You may be able to use telephone banking or internet banking to pay bills or move money between accounts.

Be responsible with your current account

It is important that you avoid becoming overdrawn as most banks will charge you interest on the amount and in many cases charge large overdraft fees. You can arrange an authorised overdraft with your bank separately to avoid these sort of issues.