There are lots of different current accounts available these days and some providers even charge for current accounts. If you are considering changing accounts or are just curious about what is available you may wonder why anyone would pay for a current account. There are advantages though, but you need to make sure that they will work well for you. There are certain things that you might get that could make it worthwhile paying the monthly fee.
Interest Payments
Most current accounts no longer pay any interest, but if you pay for an account you may be offered interest on the money in the account and it could be quite a significant amount relative to what you can get in instant access savings accounts. You will need to work out how much you will get though to see if it is worth it. You may find that you can only get it if you have over a certain amount of money in the account or pay more than a certain amount in each month. You may found that the interest is only paid on the first certain amount of money you have. It sounds complex and that is because it can differ so you will need to check carefully to see what restrictions there are on the interest that is paid.
Insurance Offers
Some paid current accounts will offer free insurance as part of the package. This can suit certain people but it will depend on whether it is insurance that you would normally take out anyway. If it is additional insurance that perhaps you do not really think that you will need, then it is worth considering whether it is actually worthwhile bothering with it. You may be getting a freebie which does not actually benefit you at all. So if it is travel insurance which you do not normally bother taking out, then consider whether you really want it.
Other Discounts or Freebies
There may be other benefits as well, such as discounts on overdrafts or free things. The offers will vary between different accounts. It is really important to make sure that you are not tempted by the offer even though it is not really something that benefits you. Often freebies and offers can be made to look really attractive but we need to think about whether they really are of benefit to us. Add up the value as well of what you get form the account and work out whether you are getting good value for money for the money that you are being charged for it. If you are likely to use the overdraft look at the rate for that as well and see how it compares to other current accounts as you do not want to pay more than necessary for that either.
So, these accounts could be worthwhile but it very much depends. They will vary in cost and the benefits that you get will also vary. You will need to take a look and see whether you feel that they will be good for you. You will need to think about whether you think that they will offer you value for money. If the freebies, offers and interest are really good and are things that you would otherwise have bought then this can be great but you will need to check their cost, if you do have to buy them and how that compares to how much you are paying for the account. If you are getting something worth more money then it is worth taking one out but otherwise it will not be.
