Avoidance of Charges

Most of the charges incurred by a customer maintaining a current account product are in return for extraordinary services that are not required for everyday use of the account. The best way therefore to avoid charges is to avoid the use of specialised services. For example, be careful not to stray into an unarranged overdraft; ensure that sufficient funds are available when making payments against your account and manage your finances to ensure that any foreseeable cash withdrawals will not exceed the maximum daily withdrawal amount. It is also recommended that account holders contact a customer service advisor if they fear that they may go overdrawn; they can then advise on possible ways to avoid charges or reduce the charges levied.

Competition (see Choosing a Current Account) has increased the range of current accounts on the market. For account holders who wish to use specialised services, it is important to remember that institution charges vary quite considerably and care should be taken when choosing a current account to ensure it offers low fees for specialised services, especially if you think that you may be utilising fee-paying services on a regular basis.

Similarly, a current account that is subject to a recurring charge may not be appropriate for customers who will not benefit from the additional features that this charge covers. The increase in the number of current accounts on offer has created a greater need for careful consideration when choosing a bank or building society to ensure the best possible deal for your finances.You may find there are benefits in maintaining several accounts with different banking institutions, since charges can be avoided by choosing to use the fee-paying services with an account that offers lower charges (see Multiple Accounts).