Choosing your bank

While many folks are with their bank because they are used to them or because it kind of feels like a neglected hassle to switch accounts, there may be advantages to looking around. And simply because you keep your principal account in one bank, there is no need to keep all your accounts or visa cards with one firm. If you've a subprime credit rating or a huge overdraft, you will find it harder to modify banks, but some banks will 'buy' your overdraft from you, or offer to change it into a loan.

For a tiny fee you can request details of your credit record from Equifax or Experian the 2 leading credit reference agencies. Convenience depending on your situation, you will find you'd be better off with one of the new web banks, like Grin or Cahoot. These can give better rates, because they have lower expenses than high st banks that have to run branches in 'real time'.

On the other hand, you will rather stick with a giant bank you believe in maybe you have got a good relationship with your branch boss and can expect additional support when you want it.

The bigger banks also have abundant local branches, which might be a bonus point if you want to, say, pay in checks often. Terms Whilst rates are a crucial consideration, there are more factors to think about when selecting a bank,eg bank charges. Others will charge extra to offer you with copies of statements. Remember too, that some banks will be offering glorious terms for new shoppers to draw in your business, so it could be worthwhile swapping simply to exploit these. Bank policy and company ethos Some establishments offer 'ethical' banking, so you can be certain your money isn't getting used to fund corporations who don't agree to certain standards.

Whilst usually related to savings, some offer current accounts with interesting rates, and plenty of the new building societies are in reality the same as banks.