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 A
Current account is a bank account that most people have
for day to day use. In most cases, the current accout is
where customers have their wages paid into and also the
account that they withdraw money in and out of and also
pay for things with on the bank card.
A
current account usually only has a low level of interest
(for anyone wanting to save money or to make more money
on their money a saving account
may be a better option as these offer greater rates of interest)
but as the account is more of a day-to-day account for paying
in and withdrawing funds it isn't generally considered an
"investment" type of account.
As
current accounts are designed for regular payments in and
out most current accounts come with a bank debit card, a
cheque book and now internet access for online
banking. This makes managing and accessing your money
easy so you can use it as and when you require.
One
very usefull feature of many current accounts is the ability
to have an overdraft (make
sure you check with your bank to arrange or see if you are
entitled to one). An overdraft can prove very usefull if
you are running low on funds, for example before payday,
or you have to pay for soemthing and there are not sufficient
funds in your account. An overdraft allows you to withdraw
more money than you have in your account, so you are effectively
"borrowing" the money from the bank. If you agree
and overdraft with the bank (such as First
Direct who offer an automatic £500 fee free overdraft)
you will be able to "borrow" that much money without
incuring any penatly payments.
Some
current accounts to check out are First
Direct | Lloyds
TSB | CitiBank
Banks
not only do regular current accounts, some also offer extra
accounts for specific customers, such as students or young
people.
Student accounts may allow the customer to have a larger
overdraft to help cover costs of going to university or
college where more money is required to get-by.
Young person accounts let young people aged under 16 to
manage their own funds, they usually get a book to pay in
and a card to withdraw funds from specific cash machines.
For young people 16 or over, a debit card may be issued,
allowing them more access ot their money, but they will
not be able to get an overdraft untill they reach the age
of 18. This helps stop them getting into debt!
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