Banking Direct: Articles: Selecting the Best Bank Account for You

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Selecting the Best Bank Account for You

Every bank offers a different range of products, but at the very least, you are certain to find a set of basic products that are available through every institution.

Which Card?

Even the most basic account will usually offer a cash card. These cards are provided so that you can use cash machines and are often part of the process for banking online.

However, there are a variety of cards available. Do you need a simple cash card? Or, would a cheque guarantee card or a switch card better serve you? Most banks also offer a fourth type, which is a card that combines all three purposes in one.

How Convenient?

One of the most important factors to consider is whether the bank is convenient for you. Be sure to consider the bank's physical location and its hours. Ask about the availability of the bank manager and even try to schedule an appointment with them to see how easy it is.

Think about what you require from the bank when you evaluate its convenience. If you are unlikely to visit the branch then its hours may not be as much of a concern; instead, evaluate the bank's call centre and online services.

Lowest Fees?

In addition to considering the overall fees, be sure to look at them objectively from your unique perspective. Ask yourself which fees and penalties you will likely be subject too and evaluate the bank giving priority to those figures. For example, do not be put off by a bank that charges a high amount for sending out an extra statement if that is a service that you are unlikely to require.

One of the most important fee systems to look at is the bank's overdraft policy. While some banks charge interest at a rate of 8%, others can go as high as 34%. Banks will also vary in their willingness to provide overdraft protection. For example, you may receive £500 automatically with your account or you may be subject to a lengthy application process.

Is Premium Right For You?

Many banks now offer premium accounts that cost a monthly fee, but provide several extra services not included in the basic accounts. Of course, the value of a premium account depends on how useful these extras are for you. For example, premium accounts can include cheaper borrowing rates, travel insurance, and roadside rescue. If these are services that you are likely to use, then the modest monthly fee may actually be a bargain for you.

Online or High Street?

Why would you want to bank online? For many it is simply because a good internet bank offers a wider variety of services and substantially higher interest rates. In fact, some internet banks offer up to 30 times more interest than the high street banks.

Online banking also provides the convenience of the internet. You are able to manage your accounts from the comfort of your home, at any time of the day or night.