Online current accounts

A current account is a type of bank account designed for day to day use, such as paying bills or receiving wages, and they usually include a cheque book and card for making withdrawals from the cash machine network. Most people now have a current account, and more and more are using them online as they get the added benefits of being able to manage their accounts at any time of day or night and from any location that has a computer. There are lots to choose from, so if you are thinking of using an online current account, consider the following points before you choose a provider.

• Consider what features are important to you

  There is a lot of competition between online providers, and all offer a wide range of features in the hope of getting your business. If you keep a fairly large amount of money in your account and don’t spend it very often, then consider an account offering a higher interest rate. On the other hand, if you regularly use your overdraft look for an account that does not charge for this. There are also more specialised accounts that tie in with your personal views, from those that offer green and ethical guarantees to those that comply with religious rules.

• Don’t pay for what you don’t need

  In the UK, most current accounts are free to operate as long as you stay in credit or within your agreed overdraft limit. However, a few do have monthly charges just for having the account, and others charge for account upgrades that offer features such as ‘money off’ deals or ‘free’ travel insurance. If you don’t need these features, don’t pay for them.

• Understand the terms

  Make sure that you can meet the terms of the current account before you sign up. Some accounts can have conditions attached, such as paying in a certain amount of money every month or only giving an interest free overdraft for a short time. If you can’t deposit the required amount every month or you intend to use the overdraft for quite a while, then you may end up paying charges that you hadn’t bargained for.

• Security

  Online providers should all meet the industry standards of security for their sites. If you are concerned about the risks and you want additional security, look for a provider that offers this. Some take the approach of giving their customers devices that generate a new code every time you want to log in, while others might offer to send you an email or text message whenever there is activity on your online account. You just need to choose the one you will be most comfortable with.

• Word of mouth

  Ask friends and family who they use for their online banking, and what their experiences are. This is a good way to get honest opinions and can give you an idea of how well the account will suit your needs.