Find The Best Bank Account

So you've decided to search for the "best bank account". But what do you mean? Ok, lets take a step back before we ask this question and take a look at what, exactly, we are looking for. Take a look at yourself - are you a student with loans hanging over you? Or do you have an existing bank account and simply want to get a better deal? You see, it's not quite an obvious answer. If you dig a little deeper you'll find more questions that need to be answered in order to find the right choices. Do you stay within your overdraft limit each month or do you regularly slide into the red? Once you can zero in and answer these questions honestly you'll be well on your way to choosing the best bank account.

Ok, now you've decided what you need it's time to do a little more digging. What I'm going to do is make up an example; this will give you an idea on the things you need to consider when looking for your next bank account. I'm a Regular saver who never goes into my overdraft. The one thing that's held me back from moving my bank account has been the time and effort needed for me to move all my payments, Direct Debits and Standing Orders to a new bank.

Well, that's not a problem anymore. In the UK, banks now have the ability to automatically transfer standing orders and direct debits. This makes moving your account far simpler.

Next, as I never use my overdraft, I start looking for something like the best in-credit bank account. Usually, the results that search engines spit out tend to be price comparison sites. This isn't a major problem but make sure you read all the T&C's on the individual bank website as they own the product and will give you the most comprehensive information available. Top tip - get a pen and paper and draw a little table showing all the benefits of the banks that you are looking at as it's easy to forget key information when you scrolling between pages on the internet.

Now there are two runners in my quest for the best bank account. So which one should I choose? On paper, it's no contest - Bank of Fantasyland (BoF) gives me ?100 cashback for opening the account plus I can refer a friend get another 25 smackers for both of us! Simple decision. Actually, no. The apparent runner up, Bank of United Misers (BUM), doesn't give me any bonuses or referral fees but they do give me 3 years at 0% interest if I do go overdrawn. In this instance, most people would take the BoF offer but remember what I said - get it down on paper and do the maths. BoLF have 0% for one year only, after which the interest rate gets pushed up to 12%! If for some unforeseen reason your bank account does goes overdrawn after one year you could end up paying back more than you get in bonuses and referral fees. Food for thought. You see, it's never as clear cut as you think.

I'm going to leave this example now. I hope I've shown you that the what could be the best bank account for one person may not be the best option for the next person.

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