This means that you have a certain amount of money that you can take out once you have used all of the funds in your bank account. However, it is important to remember that you will have to pay this money back.
Read about how to avoid penalty fees on credit cards.
Two things that you might well get with a current account are a cheque book and a debit card. This means that you can spend funds from your bank account with that card without having to carry cash around. This is particularly useful for those who prefer to shop online.
As well as this, you can set up Direct Debits. This is good for those who have things like contract mobiles or broadband packages that need to be paid on a monthly basis. The money is automatically debited from your account.
The other main type of bank account is the basic account. A lot of basic accounts come with a debit card – but those that don’t will provide a cash card, so you can use ATM machines to take out money that you have in your account.
This type of account is generally best for those who have a bad credit rating and as a result, can’t open a current account. You can also arrange to have your wages paid into a basic account.
So, if you want to open a bank account then these are the two that you should probably be looking at, especially if you have never opened an account before.
If you have money left over at the end of each month then you may wish to consider a savings account, as you will generally obtain a better rate of interest on these accounts.