Finding the right current account is important to make sure that you can manage your money easily and get the right amount of support from your bank. Below is a bit of background on some of the main types of current account that are available, to help you make an informed choice when opening a new bank account.
If you are looking for an account to save money you may want to look into a savings account or ISA, which will allow you to save several thousand tax-free each year (more information here). For regular everyday banking have a look at some of the options outlined below.
Open a standard current account
A standard current account will generally give you access to a debit card and the option to apply for an overdraft. Some more basic accounts do not include the option to apply for an overdraft however, so it’s worth thinking about how you plan to use your account and check with your bank whether or not you’ll be able to get an overdraft.
If you do not have an overdraft you must make sure your account is always in credit when you spend money or take out cash, otherwise you could see some charges applied to your account.
You should also get access to phone and online banking as part of opening a standard current account. This makes keeping track of your finances really easy as you can do a lot of your personal banking without having to go into a branch. If you are using online banking just make sure that you keep all your personal details, PINs and logins private so you are protected against card fraud.
Get more support from your bank
If you want some added benefits which a standard current account won’t afford you, you might want to consider something like the standard or Premier current accounts offered by Barclays. Some of the services you could get access to include a dedicated local bank manager who you can speak to about your financial planning and who can offer you advice and information about how to get the most from your bank account.
You can also get additional benefits like a 24/7 helpline, priority queuing in some branches and an annual financial review which can help you make a plan for the upcoming financial year. This can make a big to difference to how organised your financial life is and is especially useful if you are working towards buying a home or you have significant income and outgoings.
Manage your money during and after your studies
If you are currently in higher education you can consider opening a student bank account. You’ll typically get a good overdraft (often with 0% annual interest rate below a certain amount) which can be a useful buffer when you are managing your student loans and payments for things like university courses, accommodation and other living expenses.
When you finish your degree you may also be eligible to open a graduate account. This can help you the bridge the gap between studying and entering the world of work by giving you, for example, a 0% interest rate on your overdraft for the first year. So while you are job hunting and your income is less stable you have a bit of flexibility. Hopefully in the second year after graduating you will have a secure income and can be moved onto a more standard overdraft arrangement.
Finding the right current account is really important because different lifestyles can be suited to different arrangements for financial management. It’s a good idea to speak to your bank about your options and figure out what is right for you at this stage in your life.
