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Best and Worst Current Accounts Explored

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Current accounts are an essential factor when it comes to our daily finances. Not only do they hold our income, but they’re also the gateway that helps banks and other lenders decipher our credit rating. Although all of the high street current accounts offer near enough identical interest rates, they also offer a variety of extras.

From mobile phone insurance to breakdown cover, emergency call outs to exclusive travel exchange rates, our banks are in constant battle with one another to offer better deal sweeteners than the other.

These accounts do not come for free however, with many banks charging a premium to access the extras. Is it worth paying for your current account – potentially hundreds of pounds every year – just to access features that you could probably get cheaper on an individual policy basis?

Well, millions of people all over the UK believe so, but the vast majority don’t actually know what perks they’re entitled to, let alone ever use them.

Banks are keen to sell you reward current accounts because they’re a good source of revenue for the sector, and because it offers the illusion that banks are repaying their customers’ loyalty. Sadly, nothing can be further from the truth, and banks are clearly aware of the potential profit margin when advertising ‘perk’ current accounts.

With an average of £15 per month per account, over millions of accounts, the banks are making some serious money. Let’s take a look at some of the best and worst current accounts on the market, and see whether your premiums are worth the extras.

Best Innovators

When it comes to the most innovative accounts on the high street, the two leading banks also offer two of the cheapest. Take the Santander 123 account – one of the most high profile current accounts available to consumers today. Not only is the account great for saving money, but at £2 per month, it offers great value for your premiums.

As one of the best cash back accounts, you’ll be able to received cash back discounts on a variety of utility bills as long as you have over £500 coming into the account every month. You will also be able to get up to 3 per cent cash back on communication bills, including television and mobile phone debits.

Another of the best current accounts on the market to receive praise is the Select Silver account from RBS/Natwest. At £10 per month, customers with a love for film and music should certainly think about signing on with this lender. Not only does it come with a free monthly subscription to LOVEFiLM, but you can also benefit from up to five free digital downloads, whether it’s music, games or movies.

Worst Accounts

Currently, the Halifax Ultimate Reward Current Account is one of the worst packages on the market. At £15 per month, customers lose the right to lower their premiums if they dip into their overdraft. Additionally, although the account does offer a number of perks, they’re all pretty standard, and can be found cheaper if purchased individually.


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