How to choose the best current account for you

From Direct Debits for our monthly bills, and a contactless card for coffee on-the-go, to online transfers and taking out cash, we rely on our current accounts to manage daily life.

But how often do we think about whether we are making the most of the features they offer?

When did you last check your current account is the best one for you?

From gifts – for yourself or loved ones, lunch on the go, to family gatherings and nights out, it can be easy to lose control of our spending.

This guide will show you ways to stay on top of your outgoings, and how your current account can even help you save money while you spend.

How can current accounts help you keep track of your spending?

The days of waiting for your monthly statement to land on the doormat to check your spending are long gone. With online and Telephone Banking, and mobile apps, and text alerts, all your current account details are at your fingertips.

Making sure you use the tools that come with your account is key to staying in control of your spending. Like setting text alerts, to warn you when your balance drops below a certain level, or when a payment is due to go out.

Log on regularly to check your outgoings, and to make sure your balance will cover any upcoming Direct Debits and standing orders.

TSB’s Spend & Save accounts make it even easier with their Auto Balancer feature.

Transfer money from a nominated savings pot to the TSB Spend & Save account if your balance falls below a level you set. Making you less likely to go into an overdraft.

18+ and UK resident only.

Do current accounts have overdrafts?

Most current accounts have an overdraft feature that you can apply for. This lets you pay for things when there isn’t any money in your account, up to a pre-agreed limit, for example, to cover an unexpected bill. But always check your agreed limit and interest charges before using.

TSB’s Spend & Save accounts offer an Arranged Overdraft up to £5,000, depending on your circumstances.

An overdraft can be a useful tool to manage your budget with short-term borrowing, helping you stay in control of your finances. However, if you are relying on it every month to make ends meet, you should review your budget to see where you can make savings.

Our overdraft rates will be a standard rate of 39.9% APR Representative (variable). A good way to compare the cost of our overdraft with other overdrafts or other ways of borrowing is to look at the APR. The APR shows the cost of borrowing over a year.

Arranged Overdrafts are available to UK residents only, over 18, subject to application and approval. Overdrafts are repayable on demand.

Do current accounts pay interest?

Current accounts are designed to help you manage your everyday finances rather than save for the longer term, so pay no interest or lower rates of interest on credit balances than dedicated savings accounts.

However, features such as cashback or other incentives can be worth more than interest payments on credit balances.

Can I save in a current account?

Current accounts focus on day-to-day spending, but many also come with useful savings tools such as rounding up leftover change and savings pots.

Putting some of your money into separate savings pots lets you keep track of savings targets so you can stay on top of your financial planning.

TSB’s Spend & Save accounts let you have up to five individually-named pots, which you can name - each with a balance of up to £5,000.

You can make it even easier to save with a rounding up feature such as TSB’s Save The Pennies. This rounds up every debit card payment to the nearest pound and transfers the difference into your chosen Savings Pot or eligible TSB savings accounts.

So, for example, if your supermarket shop comes to £54.27, your account will be debited with £55, and 73p will go into your savings. It makes saving effortless, and the pennies will soon add up.

Saving Pots are only for TSB Spend & Save account or Spend & Save Plus account holders. Features must be set up through our Mobile Banking App or Internet Banking. 18+ and UK resident only. T&C’s apply.

Are current accounts free?

All banks offer a free current account, along with paid-for accounts that come with extra features.

You should always check that add-ons are worth the cost to you - free breakdown cover is no good if you don’t drive.

Can I get cashback with a current account?

Some current accounts offer cashback if you use them regularly to manage your income and spending.

You can earn up to £5 a month cashback through TSB’s Spend & Save accounts, if you make 30 debit card payments in a calendar month, limited to the first six months with the free account. You can always put this extra cash into a Savings Pot to boost your balance.18+ and UK resident only. T&C’s apply.

How can you switch your current account?

More than 40 banks and building societies, are signed up to the Current Account Switch Service, which lets you move your account, including Direct Debits, within seven days. See https://www.currentaccountswitch.co.uk/ for more information.

 
Rates and information correct at 10/11/2021
 


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