With so many bank accounts and incentives, choosing a bank account is not as easy as it seems. Comparing the options around you will pay off in the long term, helping you manage your money in a way which puts you in the best financial situation possible.
A current account is great to handle your day-to-day banking. All current accounts allow you to receive regular payments into your account, and set up payments out of your account through direct debits and standing orders. Similarly, almost all current accounts come with a debit card to be used to withdraw cash from ATMs and to make purchases, a cheque book, and/or an overdraft allowance depending on your circumstances and credit rating.
Packaged Bank Accounts
Packaged bank accounts are current accounts that come with a number of added benefits – from phone and travel insurance, to breakdown cover and better rates on loans and overdrafts. These benefits will differ depending on which bank account you are looking at and will reflect how much you are paying by monthly fee. These benefit plans may be called “reward”, “gold”, or “premium” accounts.
Incentivised Switch Accounts
A lot of banks now offer cash rewards in return for you switching from your pre-existing bank account to theirs. Different banks have different criteria which you must satisfy to qualify for a switch incentive account, such as paying in a certain amount per month and setting up regular direct debits.