Types of Accounts
Basic bank account: If you can’t open a current account because of your credit history, a basic bank account could be your best option. You can still set up direct debits and automated payments but you won’t get an overdraft.
Current account: These are used for day-to-day spending, including direct debits and standing orders as well as incoming automated payments e.g. your wages. Authorised and unauthorised overdraftsare available.
Budgeting/rent accounts: These accounts are designed to help with budgeting, dividing your money into ‘pots’. These ‘pots’ can only be spent on what you’ve assigned them to. To receive a budgeting account, you must go through your local Credit Union.
Packaged account: These accounts offer extra rewards but could come with charges from £2 upwards a month. Free breakdown cover, phone or travel insurance plus more are available rewards for paying the account fee.
Student/Graduate Accounts: For students, these accounts offer great perks including free train passes and fee-free overdrafts.
Which account is right for you?
Decide what you want to prioritise when it comes to your cash to help find the right bank account. Take a look at the main bank account features to decide on:
- Overdraft facility - If you know you sometimes dip into your overdraft, it’s worth finding an account with little or no overdraft fees.
- Interest - Find a current account with high interest to save some cash. Our bank account comparison table makes it easy to find the accounts offering the highest interest.
- Incentives - Sometimes the value of rewards can be the same as any interest you will earn. If there are any rewards you consider worthy, these could be the best option for you.
- Bank communications - If you’re old school and prefer to visit banks in-branch, then choosing a bank on your local high street would be an obvious choice.
Should I switch?
It’s now easier than ever to switch banks. So if you are unhappy with your current bank or think you could get a better deal, check out how to switch. Your new bank will do all the work and it will only take up to seven working days. If anything goes wrong, you will be backed by a guarantee so you’ll get a refund for any unfair charges.
Looking to switch? You could earn yourself some cash in the process.
Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.