Get The Best

Current Account

Compare a wide variety of current accounts with Money Expert and you’re sure to find one that suits your needs

Current Accounts – A Glossary of Terms

Getting your head around all of the terminology related to current accounts is crucial if you want to make sure that you get the best ones on the market.

AER

The annual equivalent rate, or AER, is the rate at which you earn interest on the balance of your current account.

You’ll also, generally been given a separate AER that applies to the interest you’ll be charged if you are to go overdrawn.

Basic Bank Accounts

Basic bank accounts are simplified current accounts designed for people with poor credit ratings. They will generally offer basic features, allowing you to deposit and withdraw cash and use a debit card but won’t usually allow you to go overdrawn.

Some of the most basic basic bank accounts will offer you some extra features like access to an overdraft if you pay a little bit each month for the privilege.

Credit

If you have a positive balance in your current account then you are ‘in credit’.

Credit Rating

Your credit rating is like your financial footprint; it is a record of your dealings with various types of credit and any bills in the past and allows future creditors to assess your eligibility to use their products.

Current Accounts

Current accounts are your simple bank accounts that allow you to make transactions using a debit card and deposit and withdraw cash easily.

Most current accounts will offer some kind of overdraft facility.

Ethical Bank

Ethical banks are banks who conduct themselves in a restricted manner according to a strict ethical code.

This can take the form of withholding investments from businesses that they consider immoral, or it could take the form of more positive action intended to improve the environment or society.

Who controls the money in a joint account?

Internet Current Accounts

These are current accounts offered by banks that are based solely online, without any in-branch presence whatsoever.

ISAs

An ISA is essentially a savings account but where the interest you earn is tax-free. There is a limit on the amount that you can deposit in an ISA each year which for the 2015/16 tax year is at £5,240.

Overdraft

An overdraft facility allows you to continue spending money even when your current account balance falls below £0.00. Most of the time you will be charged interest on the amount you go overdrawn, but some banks offer current accounts with interest-free overdraft facilities.

Premium Current Accounts

Premium current accounts offer various benefits to their holders in exchange for a monthly fee.

These benefits could be anything from free travel insurance to a Netflix subscription and the monthly charges range from around £5 to £25.

Savings Accounts

Savings accounts are bank accounts designed for you to leave your money stored away for extended periods of time and earn you higher levels of interest than you’d get from a current account.

Unlike current accounts, savings accounts won’t come with debit cards.

Student Current Accounts

Student accounts are designed for those in any kind of higher education or undertaking any kind of degree or degree equivalent qualification.

They generally come with an interest-free overdraft and often other free extras like railcards or Taste cards.

Youth Bank Accounts

Youth accounts are simplified current accounts designed for younger people.

Compare Current Accounts

You'll most likely use your current account for all of your day to day banking.

Let Money Expert help you find one that best suits your needs.

  •   Range of Choice
    Current accounts come in many shapes and sizes - some free, some paid; some basic, some with added extras. We'll compare a range of different types for you.
  •   Choose How You Compare
    Everyone has different needs, so you can choose to compare current accounts by anything from interest rates to overdraft limits.
  •   Free & Impartial
    Our comparison service is completely free and we're not tied to any provider so what you see is exactly what you get.

General Advice

Current accounts are the most common type of bank account used here in the UK for everyday banking.

Nowadays, with more and more different current accounts on the market, it's important to make sure you're as clued up as possible, so have a look through our guides to find out everything you need to know.

Types of Current Account

Current accounts are the most common type of bank account used here in the UK for everyday banking.

Nowadays, with more and more different current accounts on the market, it's important to make sure you're as clued up as possible, so have a look through our guides to find out everything you need to know.