Choosing a bank account

Choosing the right bank account doesn’t have to be confusing if you know what to look for. While part of the choice may boil down to choosing the bank that’s most conveniently located to you, there are a few other factors to consider, especially since these days it is relatively straightforward to do most of your banking online. So which factors do we need to consider?

  • Overdraft or interest: If you find yourself going overdrawn reasonably regularly, you’ll want to consider a bank which offers good overdraft rates. Conversely, if you’re always in credit, the interest rate is essential, even on just a few hundred pounds.
  • Some banks offer perks, especially to students and graduates, so if you fall into this category, be sure to check which perks are on offer.
  • Although Internet banking deals with many of our needs, we still need good access to cash point machines. Also, check the terms of the account as some banks may charge you for using other banks’ cash machines.

Switching accounts is very straightforward, so don’t worry about having to set up new direct debits, as the new bank is likely to take care of all of this for you. Switching bank accounts pays – whether you are on credit or overdrawn, you could save £100s by finding a better deal elsewhere.