Many of us are still with the same bank we first signed up with as an eighteen year old or younger. If you have an old-style bank account with one of these four banks, you’re probably getting a bad deal.
Through this website you can compare over 300 different current accounts and see who offers the best bank accounts.
When looking for the best current account deals there are essentially two main choices: Whether you’re looking for a current account that rewards you for being in credit or are looking for a bank account that offers interest free overdraft facilities.
About three out of four adults with a current account bank with one of the Big Four banks:
Low rates of interest on balances, hefty charges and poor service
The vast majority of the old style accounts pay only 0.1% a year before tax on credit balances, meaning you would earn just one pound each year if you had a credit balance of £1,000. Furthermore UK banks make around £3 billion a year from interest and fines on unauthorised borrowing, with an old style account you’ll be charged annual interest rates of 30% or more on unauthorised overdrafts, which is daylight robbery!
Do banks offer loans?
Banks are also able to offer loans for things such as mortgages, property loans and personal loans.
However, many property developers are finding it is becoming more difficult to get approved for a loan for a new building project. This is why many people are choosing private lenders. Find out what’s involved in the application process.
Switch current accounts and get a better deal
Current accounts have changed over the last ten or so years, meaning that we no longer have to put up with poor service, unfair charges and extortionate overdraft fees. With the market leading current accounts, you could increase your interest rate on balances to between 3% and 5% a year, earning you £30 to £50 a year on a £1,000 balance and pay much less for overdrafts or slipping into the red. Click here.
All you really need to do is open your new account and tell your new bank the details of your old one. Your new bank will then carry out the necessary transfers and get those direct debits and salary mandates moved over – all you’ll need to do is sign a few forms.
As long as you make sure that you leave some cash in both accounts until the switch has fully completed, you should find the process easy and straightforward.
Choosing the best current account for you
Bank accounts each have their strengths and weaknesses; the trick is finding the one that’s best suited to your needs. If you typically call your bank regularly and expect top customer service, an account with Smile or First Direct will be perfect for you as both banks are renowned for these skills.