What are the benefits of a Current Account?
Thinking of opening your first current account? Here are the key ways a current account can simplify your financial life.
1. Manage your everyday banking needs
Almost all employers will want to pay your wages directly into a current account. You can also use it to access cash and to make payments.
2. Make payments easy
You can set up Direct Debits or standing orders from your account to make regular payments. Plus, your current account will usually include a debit card, which you can use to make payments in person, online or over the phone.
If you have an app like the HSBC UK Mobile Banking app, you can see your balance at anytime from anywhere, as well as make payments and transfers.
3. Access your cash more easily
Banks have a network of ATMs (or cash machines) that you can use to withdraw cash from your current account up to a specified limit every day. Some will also allow you to make other transactions, such as paying bills and paying in cheques. Most ATMs are free to use, but always double check before using one.
4. Stay in control of your money
Many banks offer features like apps and mobile alerts that will tell you what your balance is and warn you if you're about to go overdrawn if you don't have an arranged overdraft or if you're about to go over your overdraft limit if you do have one.
5. Keep your money protected and secure
Current accounts with banks and building societies in the UK enjoy the protection of the Financial Services Compensation Scheme (FSCS). This means that if anything happens to your bank, you will be covered under the scheme for up to £85,000 per financial institution.
6. Build your credit history
Provided you use it responsibly, having a current account will help you build a credit history - something you'll need if you want to borrow. If you make payments on time and don't go overdrawn without an arranged overdraft in place (or don't exceed your arranged overdraft limit), it will show lenders that you can manage your money.
What next?
You can usually apply to open a current account if you're 18 or over and a resident in the UK. Before applying make sure you read through all the terms and conditions to be certain that it's the right current account for you.