Make Your Bank Account Work Harder
When it comes to opening a bank account, we are spoilt for choice by numerous banks offering different current accounts with different terms. With so many different options to choose from, making the selection that suits you can be difficult. When choosing where you are going to open your account, bear in mind the information below, which sets out the basic terms for current accounts offered by several banking institutions.
Alliance and Leicester: With an annual interest rate (AER) of 8.5% fixed until the end of April next year, a current account with Alliance and Leicester is certainly very appealing. This rate does, however, fall to 0.1% where funds exceed £2,500, but this is normal practice at most institutions. Any agreed overdraft is free for the first twelve months, and the maximum overdraft limit is £2500. Currently the most competitive of the current accounts on the market.
Halifax: As part of its High Interest Current Account, Halifax offers an AER of 6.17%, falling to 0.1% where funds exceed £2500. There is also a requirement for a minimum of £1000 monthly funding. Those making use of their overdraft with such an account will be charged an authorised overdraft rate of 15.9%.
Lloyds TSB: Lloyds TSB, as part of its Classic Plus Current Account, has an interest rate of 4.25% on any funds up to £2500. As with most accounts, this rate falls to 0.1% should the amount of money in the account exceed this figure. 18.9% is charged to those using the overdraft facility, for which there are no arrangement fees.
Abbey: The Abbey Account offers 8% AER up to £2500, falling to an above-average 2.5% once funds exceed this limit. The 8% AER applies for the next twelve months. Customers who use their overdraft can expect a charge of 19.9%, but will not be charged for setting up the overdraft.
Natwest: Customers who open a current account at Natwest will find an AER of 0.10%, increased to 0.25% if the customer opens an Advantage Gold account. Overdraft charges are tiered, but typically the rate is 19.99%. However, they have a range of current accounts that offer further perks to their customers, including discounts on home insurance and car breakdown cover.
When it comes to choosing where to open an account, it really is a jungle out there, but with the right research the best option will surely present itself. Whatever kind of account you’re looking to open, the above options are all worth looking into, but don’t rule out alternatives. Different accounts will suit different people, so for both current accounts and savings accounts it is best to search for the best deal before fully committing yourself.
