Current Accounts - How To Earn More Interest On Your Current Account & Pay Less Interest Charges When You Are In The Red

If you are someone who has thier bank account with one of the Big Four UK banks, then you are most likely only earning a miserable 0.1% interest on your current account with them which is very little indeed. If you shop around and look at what some other banks are paying, you will find that you could be earning between 2% and 5% on your current account money. So if you would like to earn up to 50 times more interest on your current account balance then you might want to consider moving your current account to another bank.

If your situation is that you go overdrawn quite often, then you should instead of going for a bank that pays the highest interest rate on credit balances, you should focus on finding a current account that gives you the lowest overdraft interest rate and charges. This is where it pays to shop around as you may be able to half your overdraft rate by switching banks. Some building societies and banks will give you a 0% overdraft for switching to them and some also offer a cash incentive of between £25 and £100 for moving.

It is much easier to move a bank account than it use to be as the banks will automatically move your direct debits and standing orders on your behalf so you have less hassle. One thing you will need to do is inform your employer of your new bank account as most banks will require you to pay in a minimum amount of between £1000 and £2000 per month.

One more way to pay less interest on your overdraft is simply to not exceed your overdraft limit as you will always pay more for this, do your best to stay within it or you could ask your bank for an increase in your limit.