What Is A Current Account?

A current account is a bank account which enables you to pay for everyday goods and services using either a card or a cheque book. A current account is also usually used in the UK for paying in wages from your job. Direct debits will usually be taken from your current account.

There are many different types of current account available today, which one you choose will depend upon your individual requirements. Current accounts will usually be offered as online banking, branch banking, telephone banking or a combination of the three.

Classic Current Accounts or Cash Account

Classic current accounts enable you to gain instant access to your money for the payment of goods and services. Many current accounts today will pay you a small amount of interest on any credit balance that you have in your bank. These type of current accounts would not usually have an overdraft facility.

Current Account With Overdraft

Essentially this is like a classic current account except that it offers an agreed overdraft facility to allow you a buffer to your spending. If you are utilising your overdraft you may be charged interest on any debit amount.

Added Value Current Accounts

Added value current accounts essentially offer you a current account with special offers. An example of items that you may be offered in an added value current account are free worldwide travel insurance, breakdown cover, fee free withdrawals when taking out money using your card abroad, mobile phone insurance and much more.

Student Current Accounts And Banking For Young People

With a student bank account or a young persons current account you will get often get things such as interest free overdrafts, cash incentive to join, offers on DVD's etc, access to student advisors and more.

Graduate Bank Accounts

With a graduate bank account you may get facilities which will assist you after leaving college or university. These may include things like interest free overdrafts and access to graduate loans.

International Bank Accounts

International bank accounts are current accounts based offshore which allow you to hold a current account in a Euro, Sterling or US Dollar currency.

Other Types Of Current Account

You may find that some banks will offer other more specialist accounts such as Islamic bank accounts or India banking services.