Thankfully in the UK, there are a range of bank accounts to choose to store your money with, more account types mean more choice. When it comes to deciding the right type of account for you, there are many things to consider, most notably what account offers the best interest on your money. Over the last few years however, leading high street banks have started to offer a number of interesting incentives with their current accounts.
From holiday insurance to car breakdown cover, there are a number of perks to signing up with high street lenders, and with more benefits being introduced on a monthly basis, the banks are going to war in order to keep their customers’ business. Standard current accounts offer the basic banking facilities, like the ability to pay bills in branch, online banking and additional savings accounts. However, reward current accounts are where all the magic is happening.
Reward current accounts, or ‘package accounts’, offer extra features to entice consumers to switch their bank account – for a fee. Ranging between £5 and £25 per month, banking customers can take advantage of emergency home cover (Halifax), special travel money exchange rates (Barclays) and even free music downloads (Santander), and thanks to increased market competition, the benefits keep getting better.
However, should you choose a bank account solely on the features of the account, instead of focusing on your financial needs? Before you make a choice of what bank to transfer your current account to, make a list of what you need in a bank account, from 24 hour help lines to mobile phone insurance. From here, you’ll be able to filter out the best reward accounts that suit your needs, instead of being blinded by discounted insurance and other perks.
What’s In It For Your Money
The amount of money you pay into your reward current account will determine what benefits you will have access to. Free current accounts are great for people that have no need for perks and extras, and over the course of a year, you could save yourself hundreds of pound in reward account fees.
If you are interest in the perks of a bank account however, then make sure you compare the market to find the best current account, before you apply to switch provider. Money comparison websites have seen a 25 per cent increase in the last year when it comes to people comparing bank accounts, meaning it’s not just a brief trend. When in doubt, always seek the advice of an independent financial advisor.
How You Will Be Banking
One on the best ways to consider which bank to give your custom, is to identify how you bank. If you’re a freelancer working from home, then you’re going to need a bank that’s open during business hours throughout the day.
Furthermore, you’re going to need to locate the nearest branch to you. However if you’re constantly in the office, and can’t get to the bank during the day, this means that you’re going to need to bank with someone that’s more suited to your schedule, opening at extra times during the weekend, etc.