Gaining Access to Your Current Account

Having money sitting in your current account is all well and good, but you need to be able to get to it. Fortunately, modern banking methods offer you a multitude of ways to access your dough, from stepping into a solid building and getting money from a live person to choosing the virtual route of a standalone Internet bank (keep in mind that the money is all too real).

In the following sections, we take you through the various access methods and highlight points to consider when choosing a current account to meet your individual needs.

Going automated with ATMs

Bank branch ATMs now offer free shared access to consumers' accounts, so you don't have to pay if you use another bank's ATM to withdraw cash.

You should check the maximum amount of cash you can withdraw from an ATM in a single day. This is usually around £300, subject to available funds or an arranged overdraft, but it can vary. If you are likely to deposit cash or cheques into your account, find out whether you can do this via your bank's ATMs to avoid queuing for hours in your local branch.

Scouting locations

Most current accounts offer a cheque book and cheque guarantee card (which often doubles up as a debit card). However, many people no longer pay by cheque, so there are a number of current account providers - usually online - who don't offer a cheque book (in exchange, you might get a slightly higher rate of interest on balances).

If you do want the option of paying by cheque, make sure the account you sign up for offers this. Check what limit is on the cheque guarantee card - it may be as low as £50, although some accounts go as high as £250.

Banking by phone

Find out whether the bank has a free or local-rate number for telephone banking and what services you can access by phone. This could make a difference if you contact your bank on a regular basis.

Clicking through the Internet

The growth of Internet banking has been phenomenal. A number of high-street banks are behind the various Internet banks, although the latter are run as standalone operations. So, for example, Halifax owns Intelligent Finance, Abbey owns Cahoot, and insurer Prudential owns Egg.

Standalone Internet banks offer better rates of interest on balances and overdrafts than high-street banks. They can do this because they have lower overheads (no branches). Instead, you get 24-hour access, 365 days a year. But the accounts on offer are more limited than on the high street and there are times when you might want to speak to someone face to face. With many standalone Internet banks you have to rely on the phone or email, which doesn't suit everyone.

You won't get a monthly statement in the post either: instead, you'll be able to access an electronic statement online. If you really want a paper statement for your records, print this off and file it.

Weighing balances

Many banks require only £1 to open a current account, but some providers insist that you deposit a minimum amount of cash each month, or that your balance doesn't dip below a set amount. If you don't have much cash to spare, steer clear of such accounts because if your balance dips below, say, £250 you may forfeit your interest. Find out whether there are any penalties for not maintaining a minimum balance before signing up.

Accruing interest

If your current account is usually in the black, it's sensible to opt for one paying a reasonable rate of interest - 3 per cent or above - to maximise your returns. However, these accounts often stipulate a minimum level of funding required per month, so do look carefully at the terms.

Terms and conditions

If there is a chance that you might go overdrawn, check what the charges are for doing so. Overdraft rates vary significantly between current account providers, so shop around for the lowest one if you need an overdraft and inform your bank before going overdrawn. Unauthorised personal finance overdrafts are far more expensive than authorised ones.

It's worth finding out how much you can go overdrawn by if you may need more than a few hundred pounds. Ask whether you can go overdrawn by a certain amount without having to notify your bank beforehand and not have to pay over the odds for this.

Here, on our website, you will find accurate information on credit cards, current accounts, loans, insurance and mortgage deals for efficient personal finance management.

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