Free basic bank accounts
These basic accounts won’t charge you a fee when you miss a payment via a direct debit or a standing order. Already some banks don’t have missed payment fees, but this will mean there’s an agreed, universal approach that could help many people avoid an overdraft.
Note: contactless payments may not appear on your bank statements for up to three days, and they don’t reduce your “available balance” statement online, or at a cash point. Be careful not to go overdrawn when using contactless payments! One way to avoid this is by asking for a receipt for your purchases and keeping track of how much you’ve spent in a spending diary.
See this BBC article for more details.
There can be advantages to switching your bank account, but before you do, make sure you know exactly what you’re gaining. There are often requirements you’ll have to meet to get the most from switching; for example having to pay in a certain amount each month.
For more details on how to switch your account, tips for switching and how to find the right bank account for you, click here.
Best interest deals
Current accounts often come with competitive interest rates, but much like getting the benefits from your bank, these can involve certain restrictions. These days, there are more accounts available that aren’t just first year interest crediting, however interest may only be paid on balances up to a certain limit, such as on first £3,000 of savings, or a minimum amount must be paid into the account each month.