Detailed below are ten points that will help you compare current bank accounts.
When doing your search, every bank will claim that they offer the best.
You will need to be very sceptical when reading advertisements for so called quality current accounts with high interest rates.
At the moment, some banks are trumpeting 1.5% interest as a fantastic rate.
All has changed in the current economic crisis, so
you will have to be extra diligent in your search.
Follow the tips here to help you as you
compare current bank accounts
and you will probably save money.
CHOOSE THE BEST CURRENT BANK ACCOUNT
1. Calculate whether any interest paid on credit balances exceeds charges on overdrafts and any other fees you my possibly incur on any of the best current bank accounts.
2. Find a bank where it is easy to switch. Several have set up specific teams to deal only with switching. This takes takes the strain away from you.
3. As you compare, be aware that some of the best current bank accounts on offer may require minimum sums to be paid in each month. Wartching some of the expensive TV advertisements makes this abundantly clear.
4. Consider your priorities and personal circumstance. For example, some of the best deals are available online or over the telephone but some customers may prefer a bank with branches near to their home or work place.
5. Use direct debits when possible as companies often offer discounts when paying in this way. Bear in mind that you have more control over a standing order than a direct debit.
6. Remember that the easy way to avoid unauthorised overdraft charges is to ask before you borrow.
7. Consider whether you would use the perk, such as free travel insurance, offered by packaged current accounts, before paying up to £15 per month for this, possibly unwanted facility.
8. Consider an offset mortgage if you are a higher rate taxpayer who keeps a high credit balance.
9. Discover what a bank is good at and if that is what you want, for instance, cheap loans or cheap credit cards.
10. Be prepared to complain to your bank and if you receive an unsatisfactory response, contact the Financial Ombudsman.
For your additional guidance please be aware that a short time ago the FSA stepped in to ensure that all banks, building societies and credit unions prominently display how much compensation savers could claim in the event of an institution failing. As of 31st December, 2010 new rules were introduced across Europe which increased compensation to £85,000.
You must protect your money.
No one else will do it for you.
These are ten important points to consider when you compare current bank accounts.
To take it one step further, some people will find that an account with a Building Society that gives the facility for using a cheque book with their current account is a simpler way to keeping a watch on their finances.
This is all serious stuff, but it is important that you keep a check on your finances in every way possible.
If you missed the last edition of the Newsletter you can read it here.
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