Types of current accounts

Bank accounts offer a whole lot more than just a cheque book. Find out more about the different types, then choose the one that's right for you

When selecting an account, think about what's most important to you. If you're always in credit, it may be about getting the best rate of credit interest. If you are often overdrawn it may be about getting the cheapest rate of debit interest and picking an account with an overdraft as standard.

Joint

A current account, usually for a husband and wife, or long-term partners.
Both partners are jointly responsible for each other's debts.

Internet only

You manage your money on the internet, so you can check it any time you like.
You often get a better rate of interest on any money in your account, compared with other current accounts.

Interest bearing

You get interest on any money in your account, but a savings account may offer higher rates of interest.

Basic

You can set up direct debits and standing orders, but you can't have an overdraft.
You often get a cash card to take money out at cash machines, but you may not get a cheque book or a cheque card/debit card.

Accounts with standard overdrafts

An agreed overdraft comes with this account.
You may need to earn a certain amount to open one, and have to pay your salary into it.

Budget

These spread the cost of monthly bills. You pay in a monthly amount and pay the bills from this account.

You can overdraw your account up to a limit, based on what you pay in each month.
You pay interest when you are overdrawn and you may have to pay a monthly fee.

Student

You need to be in higher education to open one.
Most offer interest free overdrafts and free banking, plus often mobile phones, gift vouchers etc.

You may get a credit card or other benefits, like commission-free foreign money or discounts on books too.

Packaged

You may have to pay for this account, around £90 a year.

You get the normal current account services, plus often lots of perks, like free travel insurance, commission-free foreign money, and discounts on credit cards, loans and holidays.
Some include a 24-hour Legal Helpline and will-making service.

Premier

You'll probably have to pay a monthly fee for this account and you'll need to earn a certain amount to open one.
Most include someone who looks after your account and can give you help with your money.
You may get other perks, like accidental death cover and an interest-free overdraft.