We all have them, but rarely make full use of them. No, I’m not talking about running trainers (although we should all run more), today’s topic of conversation is making the most out of our current accounts!
The transaction statement of our current accounts reflect our most glorious moments as well as our lowest lows. Some months it feels like scanning the screenplay of a Greek tragedy that’s yet to be written, but there is no-one to hold accountable (sorry, not sorry) but yourself.
You must learn to understand your current account in order to overcome it’s temptations. In a new report from the BBC, John Ashton, professor at Bangor University, has concluded that keeping small sums in your currents account but never going into your overdraft is the most effective and affordable way of managing your current account.
By keeping large sums of cash sitting in a low-interest current account, you’re effective losing money. Shifting any non-essential cash into a savings account can make you literally thousands of pounds across the years.
Ashton also advises to constantly be switching current accounts in a hunt for the best deal. “Bank customers could £70 a year on average by switching their account to another provider” says results from the Competition and Markets Authority. That’s just the right amount of money to warrant a night-out full of terrible decisions and torrential generosity toward strangers and their empty glasses.
There are 269 current account options for UK customers all with different benefits and overdraft terms and penalties. The simple answer to making the most of your current account is to move your money around regularly and intelligently. Don’t let your money get stale in one place for too long and stay clear of those overdrafts!