Club50! - for the over 50's
Current Accounts
A current account is the most widely used bank account in the UK and is the account that most people are familiar with.
It is a day-to-day account, the basic purpose of such an account is to let you deposit or withdraw money. It used to be that a current account was "just a current account" but nowadays banks and building societies have a range of current accounts aimed at those with particular needs or requirements.
This type of account is avaialble from all the high street banks and building societies and is also available to most people, depending on their credit history. People who have a bad credit history due to not payment of outstanding bills and loans, county court judgements against them or a history of fraud may find that they have fewer options open to them.
Cash Account
This type of account is very basic and does not offer a cheque-book, credit card, overdraft or internet banking facility.
Standard Current Accounts
The most popular type of account the "Standard Current Account" offers the account holder:
- Cheque-book
- Credit card
- Debit card
- Overdraft facilities
- Regular bank statements
- On-line banking
- Telephone banking
Currently, within the UK the majority of these accounts are free of charge.
Premium Accounts
These accounts offer extras, such as:
- Higher interest rates
- Enhanced overdraft facilities
- Special Offers
- Travel insurance
- Automobile breakdown cover
- Medical Cover
- Identify theft/fraud insurance
Usually, in order to get these extras you will need to pay a monthly fee and possibly guarantee a monthly deposit in the account.
Be careful when opening such an account, you can quite often find that the monthly fee that you have to pay negates the higher interest rate you may earn. In addition, many of the special offers are "nice to have" but add no real value.
All-in-one Account (Offset Mortgage Account)
This type of account is a "current account" in that it offers all the facilities of a current account. However, in addition it also combines other types of accounts such as:
- Savings account
- Credit cards
- Mortgage
All of the assets in the account, savings and money, are "offset" against the debts, mortgage and loans, and interest is earned or paid against the difference.
This type of account is of major benefit if you have a mortgage or significant loans with your bank as the interest paid is only on the difference and not on the mortgage/loan amount.
However, usually, the rate of interest paid on any savings is lower than the normal market rate and not of benefit to anyone whose savings exceed their debts.
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