Current accounts are not where banks are making their money and they don’t look at these accounts as profitable in and of themselves – but they do consider them to be a gateway to more profitable interactions with their customers. That is why many banks offer plenty of incentives for customers to switch from their account at a competitor’s bank to a new current account at their bank.
Look for Deals
A lot of banks have introductory offers when making the switch with your current account, such as £150 cash back. Some are offering cash, while others will give you gift vouchers or other perks such as phone and travel insurance. If you have a current account and a bank isn’t offering you anything to switch, you may want to look elsewhere.
After all, enough banks are making this kind of offer that you should have no trouble finding a good deal. Find the right offer to suit the way you bank. If you don’t carry much money in your account, some of the cash upfront offers will be the best value. If you tend to have a higher balance, look for the introductory high interest deals.
Consider the Long Term
You want to keep in mind that introductory offers are really only good for a short while. After that, you have to look at the long term benefits of choosing one account over another. Your main concerns need to be interest rates and fees. Some banks have great offers but offset the costs are often offset by charging you monthly or annual fees.
Once again, there are plenty of banks to choose from. If you are not finding a bank with good rates and little to no annual fees, then you should just keep looking. In fact, you should reallynot have to pay an annual fee unless there are somereally good perks for using that bank.
Sometimes,account that charge annual fees are offered to people who have never had a bank account before, but even then you should be able to find an account without annual fees after some research. These costs are often in place to mitigate the risk of taking on a customer with no banking history, but after a while you should look to switch to a more rewarding account.
Look at Interest Rates
Once you have waded through the fees banks want to charge you as you search for the right account, you need to look at ways the bank can pay you back. Some types of accounts can earn as much as 5% interest back for certain transactions. The rate of interest earned will vary from bank to bank, and that interest can really pay off over time.
You definitely want to make certain you are searching for a bank that works for you. Remember that banks are offering a service, and your money in an account at their bank benefits them. You should not have much trouble finding a bank that can show you they appreciate your business.
Find an Account Tailored to You
Some banks offer great perks for people who use their accounts in specific ways. If you travel overseas, your bank may match or beat overseas fees. Talk to the banks you are considering about what kinds of things you may plan with your account in the future. See if they can accommodate you and if they offer special benefits to people who use their accounts in uncommon ways.
If you can really plan ahead for your banking needs years in the future, you can better find an account that serves you well for the long term.
