If you are banking with one of the big four UK banks - Barclays,
Natwest, Lloyds TSB or HSBC then you will be earning very little
interest on your hard earned cash that is sitting in your
current account. Typically you will be earning just 0.1 %
interest through these banks. If you shop around, you will find
that you could be earning between 2% to 5% which is up to 50
times more interest! Some good rates can be found at Alliance &
Leicester, First Direct, Abbey National, Cahoot, Intelligent
Finance and Halifax.
If you find that you go overdrawn quite a lot of the time, then
rather than looking for the highest interest rate, you should
concentrate on finding the lowest overdraft rate. Again if you
shop around, you can find much better overdraft interest rates
sometimes less than half of what you might currently be paying.
Also some banks or building societies will even give you a 0%
overdraft for switching to them, now it can't get any better
than that! Also watch out for special deals that some banks do
from time to time where they will give you anywhere between £25
to £100 just for moving your account.
Of course you may well be thinking that this is all very well,
but its going to be such a hassle changing banks with my
standing orders, direct debits etc.. Well the good news is that
it is much easier these days to move your bank account as the
banks will automatically move your standing orders and direct
debits for you.
One thing that you must remember to do is let your employer know
your new bank details so that your salary can be paid in to your
new account. Most banks will expect you to pay in a minimum
amount in each month usually between £1000 to £2000 a month.
Another way to lower your overdraft charges is to never exceed
your overdraft limit as this is definitely going to cost you a
lot, just stay within the limit or ask for an increase in your
limit if you need it.
About the author:
Jose Miguel Poza runs several financial websites and if you
would like to read more about saving money and where to get good
deals on bank accounts, please visit
http://www.uk-bank-acc
ounts.com
