What is a current account?
A bank account offers the holder access to a wide range of banking services, such as setting up direct debits, standing orders, sending and receiving orders among other services.
What are the different types of current accounts?
Standard current account
This is a simple everyday account, designed to just hold the money that you use on a daily basis, it offers a limited number of additional services.
Basic current account
Offering a simple but essential range of banking services, most commonly payments out and into your account, such as debit card transactions and standing orders. Mostly aimed at people who have a lower than average credit rating. Such as pensioners, the unemployed, students and people who are recovering from previous financial issues.
Business current account
Offered to small to medium-sized businesses, this type of current account offers overdrafts, debit cards, automated payment, and check books.
High-interest current account
Designed to rewards loyal customers but more often to attract new customers, they offer a higher than usual interest rates.
Student and graduate current accounts
Offering larger than usual overdraft facilities than most young people will receive, many of these are offered at much lower or even free rates of interest.
Packaged current accounts
This current account offers you access to a number of different products, subscriptions and services that are unusual to a standard current account.
Overdraft current accounts
Operates similarly to other current accounts, the difference being they allow the holder to borrow money on the account, regularly at a rate of interest similar to that of a credit card.
Mortgage offset current account
A mortgage offset current account allows you to use the capital in your current account to reduce the amount of interest that you have to pay on your mortgage.
Green current account
This is a relatively new venture, but these accounts are aimed at customers who want to reduce their carbon footprint. These accounts are operated without the use of paper, either in the setup process or in the administration of the account.
There may be other types of current accounts available, contact the banks in question for more information.