How to make sure your current account is working for you

The current account market is more competitive than ever. Providers are constantly innovating and adding new perks to attract and keep customers.

But with so many options to choose from, how do you know if your current account is really working for you? To help, we’ve put together this handy guide with 12 points to help you evaluate your account.

1. Savings rates

Interest rates on current accounts often won’t be as good as the rates you’ll get in a top savings account. But some providers offer a much higher rate via linked accounts with them or for a limited time. It’s worth checking if you could earn more interest by switching.

2. Overdraft

Overdrafts can be incredibly expensive, especially if you use the facility regularly. Check the overdraft charge structure for your current account and factor in any fees for going over your limit. Is the interest rate competitive when you compare it against accounts from other providers? A handful offer 0% overdrafts that might help you clear your debt.

3. Benefits including rewards and cashback

Many current accounts come with a whole host of benefits including cashback and free cinema tickets. Some of these rewards could be free, but others will mean a monthly fee. In particular, the ones that offer travel insurance and mobile phone cover can be quite expensive. Make sure you’re benefitting from any perks, especially if you’re paying a monthly charge for them.

4. Access to digital banking

Most current accounts can be managed using an online banking app, but some providers have invested heavily in their technology to offer even more. Does your current account have budgeting tools or automatic transfer of spare cash into savings? Check that what you can do online is helping you make the most of your money.

5. Customer service and support

The level of service you receive from your current account provider and the accessibility can impact your experience as a customer. If you need to visit a local branch, how far away is your closest one? See how your current account stacks up against others by reading customer reviews. Research if you’re receiving the best service or if you could be better off moving elsewhere.

6. Review fees and charges

Look at the fees and charges structure for your current account. How do they compare to other accounts on the market? Are they one-off fees and charges or recurring? Things may have changed since you opened your account, so look at your provider’s website for the most up-to-date information. 

7. Security features

With hackers and fraudsters constantly coming up with new and more sophisticated ways to access current accounts, it’s more important than ever to evaluate security features. Can you set up facial recognition or other security measures to protect your account? Take a look at your provider’s policies for helping customers should the worst happen and your account is accessed by an unauthorised person.

8. Ethical banking

If protecting the environment is important to you, review the practices of current account providers to see if they align with your values. In our article about ethical banking, we’ve shared practical tips about how to research ethical companies.

9. Ease of switching accounts

If you’re already considering a new current account, check how easy it is to switch. Evaluate the switching service providers offer including how long it’s likely to take and if there’s any financial incentive to move to them.

9. Compatibility with personal finance tools

If you like tracking your spending and managing your budget in one place, then you may want to research personal finance apps. See if the current account you have or the new one you’re considering is compatible with your chosen personal finance app so you can manage your money the way you want.

10. International use

If you’re likely to use your debit card abroad, even if it’s just for a holiday, it’s best to have a look at the conditions of your current account. Some providers charge fees for every transaction and withdrawal, while others don’t charge anything. Even over a two-week holiday, these fees can mount up, so it’s worth finding a free one, even if you only use it when away.

11. Alerts and notifications

To manage your money effectively, it’s important to keep track of what’s happening with your current account. Providers offer a text or email alert service that tells you about important events like going into your overdraft or a new payee being set up. Check the different alerts you can turn on for your current account so you get instant information.

Now you’ve reached the end of this guide, you may have decided that your current account is giving you exactly what you need or maybe it’s lacking in some areas. Either way, we’d love to hear your thoughts.