Guide to Finding the Best Current Accounts in the UK
When it comes to your hard earned money, we know you want it stored in the best location possible. This means that finding the best current account in the UK is highly important.
We are also willing to guess that you not only want the best current account in the best bank, you also want to look into current accounts with benefits.
If your money needs to go into an account anyway, you may as well receive special offers, exclusives, and more.
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We are here to make the top current accounts research process easier. This article will be your guide for the following:
- Understanding what a current account is
- Knowing what the best current bank accounts offer
- Finding the best bank for current account creation
- Learning tips to search for the best current accounts with benefits
- Starting to compare current accounts to find the right one for you
What Is a Current Account?
Current accounts are your everyday, “run of the mill” bank accounts. In the United States, these are referred to as checking accounts.
These are the bank accounts you will use frequently, the ones that will handle your daily costs of living, your household payments, and all forms of bills.
The best current account feature may be its ease. Typically, you will receive checks and/or debit cards to help you utilize your money frequently and easily. The best current bank accounts also offer some sort of overdraft protection, and some will even offer a small interest rate.
Interest rates are often the biggest way current accounts differ from savings accounts. Even top current accounts will not offer you nearly as much interest earnings as a good savings accounts will.
To compare current accounts in the UK, read on.
How to Find the Best Current Accounts with Benefits
The best current account you can find for yourself will help you earn money, prevent you from losing money, and offer extra incentives and/or ways to make dealing with money a little bit easier.
Essentially, the best current account in the UK for your money is the one that offers you and your finances the most benefits. And the best bank for current account creation depends upon your exact needs.
Here are seven tips that will help you learn more about top current accounts, compare current accounts, and ultimately choose the best current account that offers the benefits you need for your specific situation.
1. Research the Best Bank for Current Account Creation
Starting your research on finding the best current account often begins with learning more about individual banks in the area.
Learning more about the top banks in the UK that offer current accounts will give you more confidence before signing up.
The best place to start your research is on our own AdvisoryHQ “2016 Ranking of the Best Banks in the UK.” This article will give you:
- The 5 top biggest British banks
- The 4 best UK banks with top interest paying accounts
- Charts and links to help you with your research
Once you familiarize yourself with these banks, you will have a better understanding of each of the options for the best bank for current account creation. You will also know their reputation, their assets, and their general offerings.
2. Find the Best Current Account with Interest
Current accounts, or checking accounts, are not typically known for the high amounts of interest they will earn you. In fact, many current accounts – even some current accounts with benefits – offer no interest at all.
When it comes to finding the best UK current account for you, finding one that pays interest should be a high priority. Arguably, it is the best benefit you could receive when you choose the best current account in the UK for you.
One tool for finding the best current account with interest is through Money Super Market. This website offers a list of interest-bearing top current accounts. For each bank mentioned, you will learn the following:
- The interest rate you will receive
- The balance total you need to earn that interest
- The monthly fee
- The customer service rating
Learning the monthly fee is important. It does not matter if you earn a little bit in monthly interest if you lose it all to a monthly fee. And customer service ratings help you feel confident that this is the best current account for your finances.
3. Compare Current Accounts for Switching Incentives
For those who have a current account right now but want to compare current accounts in order to switch – keep an eye out for switching incentives. This can be a really nice benefit that stems from the best bank current accounts.
A switching incentive is what a bank offers you to entice you to ditch your old bank and come over to theirs. The best current account switching incentives normally include cash money and sometimes include gift cards.
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Know Your Money has a helpful guide that allows you to compare current accounts in the UK, but they also showcase the incentives. They offer the important information on each of these top current accounts: maximum interest, minimum monthly credit, and monthly fee.
The list also shows which banks offer a switching incentive for moving over to their account. For those offering switching incentives, Know Your Money lists what they are offering so you can find the current accounts with benefits for switching banks that work for you.
4. Find the Best UK Current Account with Rewards
When it comes to benefits, the best current account provides a wide variety of exclusive offers. Sometimes, the best current account in the UK for you offers the benefit of rewards. From cash to insurance and gift cards to special coverage, choosing one of the best current bank accounts with rewards pays off.
Money Super Market offers a unique tool to filter the best current bank accounts down to specific details. One of these filters has to do with current accounts with benefits. Some of the exclusives, products, or rewards you will find on this list of the best bank current accounts with benefits include:
- Travel insurance
- Mobile insurance
- Breakdown coverage
- Loyalty rewards
- Cash back
- Linked products
5. Compare Current Accounts Overdraft
Another one of the most important benefits the top current accounts can offer is overdraft protection. The best current account can potentially make overdraft a considerably easier happening in your life. Here is how overdraft works:
Say you have $100 in your bank account and your $160 car payment is taken out of your bank account without you realizing it. You will have accidentally overdrafted $60. For many banks, this results in extra charges or fees.
Current accounts with benefits in the overdraft department sometimes offer you a grace period, overdraft forgiveness, or simply low fees and charges when you do happen to overdraft.
Know Your Money compare current accounts in the UK that have some sort of good overdraft facility. If you believe that overdrafting will be a possibility for you, take advantage of these current accounts with benefits.
6. Know the Best Current Account for Bad Credit
One possible benefit of a current account is allowing you to open one even if you have bad credit. When you compare current accounts in the UK, you will see that some offer options and even benefits for those who find themselves with bad credit. USwitch offers their list, “Compare Current Accounts For Bad Credit,” to help you learn more about your options.
On uSwitch, you will see the three best bank current accounts for bad credit, as well as plenty of useful information on the subject. USwitch shows that none of them participate in credit checks and then details:
- The overdraft percentage
- The interest rate
- The monthly account fee of each
7. Compare Current Accounts for Students
Current accounts with benefits are not only for adults; kids, teens, and young adults can also receive incentives for banking their money as they go to school. As this is a time when people are typically making very little money, it is important that it gets stored wisely in one of the best current bank accounts.
Some of the banks with the top current accounts will offer special student accounts. Many times student accounts offer lower fees for those in middle school, high school, or college, as well as a 0% overdraft fee under a certain balance.
To learn more about some of the banks in the UK that offer the best current account options for students, look through the following resources:
Other Resources for Finding the Best Current Account
Since choosing the best bank current accounts is such an important decision, it is a good idea to do comprehensive research before you sign up. Here are a few other helpful resources that can help you compare current accounts as well as different UK banks in general.
- Money.co.uk: This website offers their list of 10 top current accounts. They also offer information on each current account’s fee, requirements, overdraft policy, and interest rate.
- The Telegraph: Earlier in 2016, The Telegraph ran a piece entitled “Which bank should I switch to?” on their website. They break down which banks are good for savers, good for cash back, good for customer service, and more. This is a great tool to find the best bank for current account creation.
- Which.co.uk: This website lays out customer satisfaction for the various banks in the UK, an important factor in choosing the best UK current account for you.
- Moneyfacts.co.uk: With this article, “6 of the best high interest current accounts,” you can learn about some of the top current accounts through various helpful charts. Money Facts helps you compare current accounts through comprehensive information for each UK bank.
What Is the Best Current Account in the UK for You?
The first step you need to take in finding the best UK current account for you is to think about which benefits you need in your life. Do so by asking yourself important questions such as:
- How much money will be in my current account?
- How often will I be pulling from or depositing into my current account?
- Do I want added rewards like cash back or travel perks/insurance?
Once you have taken an inventory, you can begin to compare current accounts and get a better picture of the best bank current accounts for you and your money needs.
Make sure that you are confident you have found the best bank for current accounts, compare current accounts to see which offer the specifics that best help you, and read the fine print even when signing up for top current accounts. And, of course, follow our seven tips above for finding the best current accounts with benefits.
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