Your Friendly Bank – An Accident Waiting To Happen? By Sue Barnard At Isnare.com Ezine Articles

The current or chequing account you probably have with your high street bank is probably not something you pay much attention to. It’s a necessary item that is convenient, doesn’t make you any money, but doesn’t cost you anything either. Until you make a mistake that is!

Going overdrawn without authorization from your bank or missing a loan repayment can cost you dearly and after letting them keep your money for all those years, interest free, they are likely to hit you with a hefty charge, even for a small error on your part. Then you’re likely to feel very aggrieved and will seriously consider moving banks.

So why wait for that to happen, avoid the annoyance and cost by switching bank accounts now if you need to. By finding a current account that pays a reasonable interest rate on account balances and also has attractive overdraft arrangements you will earn some money as well as protecting yourself against those small overdraft mistakes we all make at some point.

Most of the high street banks will only pay you 0.1% interest on your current account – compare that to the 3 or 4 % rates offered elsewhere – that’s 30 to 40 times more. Then look at the average overdraft charges – Which? magazine in the UK reported that Smile would charge £123 less than the average charge for a £250 authorised overdraft and unauthorised overdrafts of £50 three times in one year. Switching to a new account is very easy. There are rules in place to make sure the banks play fair when it comes to handing your account to a competitor, so there’s no need to worry about taking the step.

Only 1 in 20 people have changed their current account in the past 2 years, so you would assume that most of us are very happy with our banks. In fact Which? also report that 35% of us are annoyed with our banks.

So, set a few minutes aside to look at the details of the current account you have at the moment, look at interest rates, overdraft charges, loan information and understand what the cost might be if you make a mistake and go overdrawn. Then look at the best current accounts on offer elsewhere – there are over 150 available – and decide if you’d like a change. Many new accounts include added perks and many even reward you with some cash for switching.

Published At: Isnare Free Articles Directory http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=93763&ca=Advice

Important Notice DISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at Isnare.com without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at Isnare.com do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute Isnare.com's support or sponsorship for this article. Isnare.com is an article publishing service. Please read our Terms of Service for more information.