Current accounts
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Andy McKechnie is head of sales and marketing for Savings at Halifax, the UK's biggest provider of savings accounts. |  |
Friday, 17, Nov 2006 02:27
Current accounts are a banking or building society product that allow people to make unlimited deposits and unlimited withdrawals provided these do not exceed a certain limit.
Current accounts are typically accompanied by a debit card and chequebook - allowing payments to be made directly from the account and cash to be accessed from ATM machines.
Current accounts also often come with an overdraft facility - allowing account holders to withdraw more money than is in their account up to a certain limit. Banks generally charge a set rate of interest for people who go over their overdraft limit, although many student accounts do not.
Another key feature of current accounts is the ability to set up standing orders (where a set amount of money is automatically paid at regular intervals from the account) and direct debits (which allow a changeable amount of money to be drawn from the account, according to an agreement with the person/firm drawing the money). The ability to automatically receive payments (such as salaries and pensions) is also a key feature.
Current accounts come in many forms, some offer interest payments of more than six per cent on positive balances while others offer cash back on every purchase made on the account's debit card.