All current accounts are similar in that you can deposit money into the account and then withdraw money at any time without interest rate penalties, subject to any daily withdrawal limits and of course your available balance.

However, the facilities offered can vary considerably, as does the naming convention for different types of accounts offered by the various banking institutions.

When choosing a current account you should decide how you will be using your account and what facilities and features you are going to need. You are then in a position to choose the current account that most suits your needs for the minimum expenditure.

Below is a list of questions you should consider when deciding on which current account to choose. Remember, you should focus on features that are relevant to you and your banking habits. For example, if a bank has very high overdraft charges, this should be of little interest to you if you never go overdrawn.

• What is the minimum opening balance required in order to open the account?



• Is a cheque book provided and if so is it supplied with a cheque guarantee card? If so, what is the limit of the cheque guarantee card (the usual is £50 or £100)?



• Is a cash machine card provided? If so, what is the limit on how much you can withdraw in one day?



• Is a debit card provided? Debit cards allow you to make purchases against your account, with the purchase amount usually being debited from your account on the next working day. Two types of debit card exist; Switch and Delta. They work in the same way.
  
  
• Which cash machines can you use without being charged? You should take into account which cash machines are available in the areas you are most likely to want to withdraw cash, such as near home, near the office or where you tend to socialise.



• What interest rates are offered on balances in credit? Some current accounts offer a tiered interest rate structure whereby the interest rate increases as your balance exceeds certain amounts.



• What charges are made on the account? [more details]



• Is an overdraft facility offered? If so, does the overdraft need to be authorised or is it automatic? What is the interest rate charged on overdrafts? Is there an arrangement fee, and if necessary, a yearly renewal fee? If so, how much are these costs?



• How often do you want current account statements to be sent?



• Do you want to be able to manage your account online?



• Do you require high street branches?



• Do you want the added security of your photograph and signature being etched onto your cards?



• Is any assistance offered if you need to move direct debits and standing orders to your new account?



• Are there any introductory offers? These include receiving a lump sum on opening a new account and receiving an interest free overdraft for a limited period after opening the account.



• Are preferential rates offered on other financial products such as personal loans, mortgages or insurance products?