BEFORE GETTING YOUR BANK ACCOUNT

What to look for when selecting a bank account
Most banks now offer at least three types of bank account. Even basic accounts offer a cashcard; premium accounts have a whole raft of services bolted on. Very few current accounts remain just a place to put your cash, so tot up the benefits and shop around before deciding where to put your salary each month.
A bank account is no longer just a place to put your money so that it’s safe and you can write cheques. For starters, current accounts can offer interest- but rates vary wildly. The good internet banks can offer up to 30 times as much interest as the high street banks!But there are plenty of other things you should be aware of. Do you get a cashcard, a cheque guarantee card, a switch card (or all three in one card) with your bank account? Ask what charges are like- for going overdrawn or for simple services like getting an extra statement sent out. Overdraft fees vary from 8% to 34%! And can you get an overdraft at all- some banks offer £500 with no questions asked; others will expect you to fight tooth and nail.A new breed on the scene is the premium bank account. These charge a modest fee (£5 to £10 per month) and offer a bunch of extras, usually cheaper borrowing, travel insurance, roadside rescue and shopping. If you use these services, maybe that’s a good economy.And do you have easy access to your bank and more importantly your manager? NatWest have stopped using call centres and offer you direct access to your branch- in general that’s a good thing.Finally watch for special services that might be a bonus. Abbey National for example offers “sweeping”- automatically putting spare money each month into a savings account, offering you better interest. Many internet banks also allow you to offset interest on your current account against a mortgage.So tot up the benefits- your bank account should include extras and benefits, it’s no longer the same as a piggy bank or a box under your bed!