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Current Accounts
Most people would find it hard to survive without a current account.
Current accounts are used for your day to day business such as withdrawing cash, paying bills, writing cheques,
and maybe receiving your monthly salary. Most people within the UK today have at least one current account.
Current accounts cost banks the most to keep running thus the interest paid on credit balances is usually very
low, if you have a large current account balance you should consider looking at other ways to make your money work
for you.
Since banks have made it easier to move from one bank to another, the market for current accounts has heated up which is
great news for the consumer. Banks have attempted to make their current account appear better to others by offerng
added extras such as travel insurance, airmiles, or a cash payment for switching to them.
Beware of the gimmicks, a current account is just a current account.
Offset Current Accounts
The offset current account is a fairly new product that was originally introduced with a mortgage requirment by Virgin
but now marketed as The One Account by the Royal Bank of Scotland. This product
works by combining your mortgage, loans, savings, and current account into one account therefore allowing you to
offset your income and savings against your borrowing so you effectively borrow less and pay less interest on your
borrowing.
This concept has been taken further by traditional banks to produce an combined savings and current account which pays a
high rate of interest on credit balances and also offers the same flexibility and access as your traditional current account.
Beware: Although these products are excellent a degree of self control is needed to ensure your savings are not
eaten away by your spending.
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