Choosing a current account can be quite difficult. There are a lot of different ones to choose form and it is fairly easy to switch from one provider to another, much easier than it used to be. This means that they are a lot of people that swap current accounts so that they can get more benefits or a better service than they were getting in the past.
In the days when current accounts all offered interest on balances then many people would take a look to see which looked to be the best using the interest payments as a way to compare them. However, these days, there are very few that actually have interest because the Bank of England base rate is so low. Some do offer interest but there may be a monthly charge for the account and therefore you will have to calculate whether it is worth paying the charge in order to get the interest, you may find it does not make a lot of difference.
It can be worth looking at those current accounts which charge you a monthly fee. They can offer a variety of benefits from free insurance to cashback on purchases. Work out whether the benefits are things that will really help you. Maybe you would have had the insurance anyway and paid more for it, so having it as part of the account makes sense. Make sure that you always calculate how much you will get form the benefits of the account so that you can compare that with the cost and make sure that it is worth you paying that monthly charge.
With no interest being paid on accounts in credit, there are other things that you will have to consider when working out what the best current account is for you. Some people use the overdraft facility of a current account frequently. This is something which you get charged an interest rate for and you might also get a fee. The amount that you can negotiate for an overdraft and the rate/fees that are charged could vary significantly between banks and building societies and so this could be something that you should look at when you are trying to compare them.
Some also have additional benefits. You might find that you can get a better rate with that financial institution on savings accounts or loans if you hold a current account with them. This could be worthwhile, but it is still worth comparing them as you may find that there are still better savings rates to be had elsewhere even if you do not have a current account with that particular financial institution.
Some people feel loyalty to a particular bank and building society. It might be that they have always used them or that they have been particularly good for them. This is good because it means that you are with a company that you trust and feel relaxed with. However, there could be even better ones out there which you are not making the most of. It could be worth comparing just to see what else is available. There may be something which stands out so much that you will be prepared to swap for it.
To see what accounts are available many people will go to a comparison website. These are useful in allowing you to see what might be available and which accounts are more favourable but they do not compare every single current account. Some will not appear on any comparison websites as they can only be approached directly and some comparison websites will only feature a small selection of current accounts as they will only include those that will pay them commission for their leads. So although it can be a useful thing to do, it is a risk as well.
When choosing a current account it is important to think about what features you are looking or from an account. This will enable you to be able to reduce the amount of accounts that you are comparing, as not all will fulfil your criteria. Then you can compare them more easily and should be able to find the best one for you.