Types of Current Account

Until the internet catalysed the creation of new types of current accounts (see Online Current Accounts), banks and building societies had very little to diferentiate between their current accounts which offered the same or very similar banking services. Nowadays, there are several types of current account on offer, some catering for specific consumer groups, such as students. Some accounts charge regular fees in return for certain benefits, such as worldwide travel cover (see Fee-Paying and Package Accounts); some offer larger overdraft limits; some offer specialised current accounts for young people, pensioners or the self-employed (see Specialised Current Accounts). Most institutions differentiate between personal and business banking and as such offer current accounts that reflect the distinct needs of both consumer groups.

It can be beneficial for a customer to take advantage of the incentives that banks offer on current accounts by having accounts with more than one bank (see Multiple Accounts). It is also possible to transfer your funds to another banking institution if the current account on offer there would give you better value and still meet your needs.