How to find the best current account

Current accounts might seem like a bore, but taking the time to consider your options could pay off. Why? Each account offers different features and benefits, so the best one for you depends on your needs.

Here are a few things we think you should consider.

Interested in interest?

Your current account is going to have two types of interest: one on your overdraft and one on your savings. The first question you have to ask yourself is, which is more important? This of course depends on whether you’ve got yourself a little nest egg or if you’re in the red most of the time.

If you are a saver, then look for an account with high interest on your balance. You might find one that offers a higher rate the more you have saved, or a special rate if you don’t touch your savings for a specified period. Once it matures you’ll have a small bonus to reinvest. Plus you’ll benefit from compound interest. That’s interest on your interest.

But if you’re more inclined to dip into debt, you’ll want a current account that has a low interest rate on your overdraft. You could even get an account that offers a 0% introductory rate. That means you’ll pay no interest for up to a year.

What else is on offer?

Interest isn’t your only concern. Banks now offer more, like free travel insurance or commission-free travellers’ cheques and currency exchange. If you’re a frequent traveller, these incentives could be worthwhile. Other offers include discounts at restaurants or hotels, and card protection.

But you need to balance these fancy offers with the actual interest rates. For example, if you’re being ripped off with exorbitant interest then you’d be better off with low interest while organising your own travel insurance.

Student or recent graduate?

If you are studying or graduated in the last few years, than your best current account is likely to be a student or graduate account. Many give you interest free overdrafts. Several also offer dedicated financial managers to help you work out your finances.

Again you can also get the benefits offered on ordinary current accounts, like travel insurance and discounts.

Finding the best current account

We can help you choose a current account that matches the way you use it. We are working with uSwitch.com to provide you with a free and impartial comparison and switching service.

We ask a few questions about your banking habits and what you want from your account. Then our calculator matches your needs with the best current accounts on the market.

You may even be able to apply to the one you want on our site. It’s easy and quick. There’s nothing to worry about either. Switching current accounts is simpler than you might think.

Switch your account to a better deal or apply for a new current account today.