Choosing a Current Account
Article describing the main features to look for when choosing a new current account
No Charges For Day To Day Banking
Not only did banks used to pay a pittance in interest on your balances, and charge a huge rate for overdrafts, they often used to charge fees for day to day transactions such as writing cheques, setting up standing orders etc. Thankfully this is now rare for personal accounts, but check the small print to make sure there are no hidden fees.
'Welcome Gifts'
Some accounts will offer you a 'welcome gift' when you open an account. Examples at the time of writing (16.8.2005) include First Direct with a £50 credit to your account, and Alliance and Leicester who offer £25.
While welcome, these teasers are fairly insignificant when you compare them to the amounts of money you can earn by choosing higher interest earnings, for example, so these gifts should probably be near the bottom of your checklist when comparing accounts.
Low Minimum Pay-In
Some accounts, especially those featuring high AER interest rates, require a minimum payment into the account every month. Check that you're willing and able to make the required deposit every month if an account requires one. Interestingly, Moneysavingexpert.com reports a sneaky way around any deposit requirement. If an account requires a £1000 deposit every month, you can get away with paying in - say - £900, then withdrawing £100 and immediately paying it back in. This means that you have met the required monthly deposit amount. Sounds good, but probably not a plan to rely on in the long term.
One account that doesn't feature a minimum pay-in amount is the Citi Bank Direct account, which also features an AER rate of 4.59%
Making Your Decision
Finding your ideal combination of all these features can be tricky, but it may help to check our current account feature summaries, our rate comparison table or our current account listings.
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