Not all current bank accounts are the same

Whether you're saving up your pocket-money, or about to receive your first salary payment, it's likely that you'll be considering opening a bank account to help manage your money. With a multitude of deals on offer and more banking options than ever before, choosing a bank account has never been more confusing. But with a little research and legwork, you can find the best banking relationship that fits you and your finances.

Everyone will have different requirements when sourcing a bank account, but for most people the key considerations will be similar. In addition to the standard features of most current accounts, such as a cheque book and debit card, it's important to consider the benefits you want from your account before you choose a bank account. Features to consider include interest rates, charges, availability and accessibility and each can help to make sure you choose the right account. Interest rates, for example, vary from bank to bank so if your account is likely to remain in credit, it's a good idea to look for a bank offering a high rate of interest on credit balances. Be cautious, however, as some banks may only offer a higher rate if your credit balance exceeds a certain limit.

If you need an account which offers an overdraft facility, be sure to check the charges that will be incurred if you become overdrawn. Some banks won't charge interest on a pre-determined overdraft amount, but penalties for unauthorised overdrafts could be costly if you stray over your limit. Others might offer a small 'buffer' where you won't incur interest on balances that exceed your overdraft limit, providing you repay the excess within a specified amount of time.

Do you prefer the personal touch to your day-to-day banking? If so, check the location of bank branches near your home or work so that you can easily conduct your business. There's little point in opening an account with a bank whose nearest branch is in the next town; bear in mind also that most high street banks are only open on Weekdays, although some are also open on Saturday mornings. It's also worthwhile to find out where banks' ATMs (Automated Teller Machine) are located for easy access to your money. Remember that some banks and independent ATM providers may charge you for withdrawals made through their terminals, so make sure you have as much 'free' access as possible.

However, if there isn't a branch nearby, or you find the opening times to be inconvenient, don't despair. There are several internet-only banks available, which as the name implies don't have a high-street presence, meaning their overheads are generally lower than high street banks. This can sometimes lead to higher interest rates for internet customers, plus users will enjoy the convenience of online banking.

Online banking is available from most high street banks, allowing you to check your balance, move money between accounts, pay bills, manage direct debits and apply for other services at a time to suit you. At any time of day or night, you can easily administer your day-to-day banking with a few clicks of your mouse. In addition, most banks also offer telephone banking, where you can access most of the services you'd find in a branch over the telephone.

Current bank accounts are always changing as new products are launched into the market. In order to attract customers, banks are offering everything from discounted CDs and DVDs to prize draw promotions and holiday vouchers, and its easy to be lured by the range of goodies on offer for opening an account and overlook more fundamental aspects of the account. As such, it is more important than ever to make sure the bank account you choose can offer you more than just a fistful of freebies, but provides the right account and services for your needs.

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Paul McIndoe is a recent university graduate whose hobbies include water-skiing and rock climbing.

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