Most of us have a current account. This is where we tend to see most of our transactions take place. We are likely to see our pay go into our current account and have direct debits and standing orders goings out as well. We may also use it to borrow money by way of an overdraft. It can be a useful account that we use for our day to day banking. Many of us will have had the same current account provider for many years. We might think that it will be too much of a hassle to swap but there are some big advantages of doing so.
If we use the overdraft facility on our current account then we will find that we will be charged. There tends to be an interest rate with these which can be around 40%. This is pretty high. This means that if you look at other financial institutions then you may find that have a lower rate. Some are 35% for example and therefore this could make a significant difference if you use the overdraft facility a lot. There are also other costs with current accounts too at times, things like having extra statements printed off and if you use these then you may want to compare these costs as well.
Some current accounts offer a little amount of interest. They used to all pay interest but this has changed since interest rates have been so low. There are still some that may pay a little bit though. These might particularly accounts where you get some money when you pay for certain things through the account or if you keep a certain amount of money in the account. It might be that you need to have a certain amount of money passing through the account each month. Therefore, if you are looking for an account with a better return, then you will be wise to check all the terms before you switch.
How to Compare
There are some websites where you can do comparisons of different accounts, that you will find useful to use. These vary though and it is good to make sure that you use a trusted one. Websites such as money saving expert will be unbiased and show you the best current accounts with regards to the cost and the interest. There are lots of other sites that do this as well, but you will need to be sure that you use one that is unbiased. You will need to think about the sites and whether they might be biased bearing in mind hat some will get commission from any leads they generate form recommendations they make. Legally they have to state this clearly and it will not always mean that they will biased but there is a bigger chance of bias as they may be keen for you to switch to an account that they get paid more money from. Make sure that you are also comparing yourself and thinking about your own needs. The account which suits you the best will vary depending on what you use it for.
You might also be concerned about the amount of time and hassle that it might take to switch accounts. This is not unjustified but it could be worth it. The current account providers should help you with this and switch the different things over for you, but some people do still find that they have problems happen. This can be a concern but it is a good idea to consider whether it is worth it if you can reduce the cost of your overdraft or get more interest on your money.