What to consider when opening a bank account

Having a bank account makes it easy to manage your money. You have a secure place for your salary or other payments to be paid into and it gives you the convenience of making payments by direct debit and standing order. And you can have instant access to cash when you need it. With a bank account it’s easy to keep track of your money.

There are different kinds of bank accounts to choose from, all with different features and benefits.  As part of our commitment to helping you decide which account is best for you, here are things to consider when choosing a bank account.

• Does the account work for me?
• What kind of features and benefits can I expect?
• What commitment do I need to make?
• What else should I think about?

Does the account work for me?

Spend some time thinking about what you want from your bank account. Make sure that the level of service it offers meets your needs. Check that you can get access to the account in a way that suits you. Compare different accounts to find the one that works for you and makes your money work for you.

For example, if your account is regularly in credit, look for an account that pays a high rate of interest.  If you regularly go overdrawn, look for an account with a low rate of interest on overdrafts.

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What kind of features and benefits can I expect?

The features and benefits are different for each account. You could choose a simple account where you just pay in and take out money (for example, our Easycash account). Or you might prefer an account with lots of added benefits and discounts such as our Ultimate Reward Current Account. This account provides benefits such as worldwide multi-trip family travel insurance and RAC breakdown cover for only £12.50 a month. Most of our accounts pay interest when you keep them in credit. This can range from 0.1% AER variable to 5.12% AER  variable, depending on the type of account you have and how much you pay in.

(AER stands for annual equivalent rate. It shows what the interest rate would be if interest was paid on the whole balance once a year.)

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What commitment do I need to make?

Firstly, you’ll need to provide proof of who you are and where you live.

Keep track of your account. Check your statements, get mini-statements at cash machines, or register for our online banking or telephone banking services. These allow you to track your account at any time.

For some bank accounts you need to pay in a minimum amount each month to get the best from them. Other accounts may offer a range of extra features, but you would have to pay a monthly fee to get them.

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What else should I think about ?

Here are some things to think about.  If your bank account allows you to have an overdraft  you’ll usually have to pay interest on that overdraft. The rate of interest you’ll pay will depend on whether or not you have agreed the overdraft with us and the type of bank account you have. It is typically 19.5% EAR for an arranged overdraft (except for with the  Student Current Account which can offer an interest-free overdraft of up to £3000 and 7.2% EAR  variable on any amount over this) and from  24.2% EAR variable to 29.8% EAR  variable for an unarranged overdraft.

(EAR is the equivalent annual rate. It shows what the interest rate would be if interest was taken from your account once a year. It does not take account of any fees or charges.)

Some accounts will charge you for special services like issuing a banker's draft or stopping a cheque. You’ll also need to make sure there’s enough money in your account to cover direct debit payments so you avoid any unnecessary charges. You can find details on the interest rates and fees page.

Some people find that a savings account suits their needs better than a current account. Savings accounts usually make your money work even harder, earning you higher rates of interest. And in some cases we can offer tax-free options.

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