Potential Benefits & Drawbacks to Current Accounts
When you are considering whether or not to open a current account, remember the following benefits and drawbacks:
Benefits:
- Interest paid on account balance
- Easy, fast access to your funds
- Fast, easy and charge-free transfers of funds for bill payments
- Package accounts provide additional money-saving benefits
- Overdraft facilities
- Electronic payment facilities
- Chequebook facility for cashless payments
- Specialised accounts for different customer groups; increasing the likelihood of good-value services
- Management of regular payments (for example your monthly salary)
- Online, electronic mangement of money available
- Access to money abroad without the need to exchange cash
- No need to carry large amounts of cash, increasing safety
- Statements issued to simplify money management and budgeting
Drawbacks:
- Usually low interest rates
- Maximum daily limits on cash withdrawals
- Fees charged for package current accounts
- Special services may incur heavy charges
- Security of electronic transfer and card payments can be compromised
- Paperwork and terms and conditions can be confusing and time-consuming
- Large corporate businesses may pay large fees on transactions
- Losing a card can restrict access to funds
- Chance of fraud when using internet banking
