Snap Up A Better Current Account

With the recent worries regarding security breaches, could now be a good time to switch to a better bank account?

It seems that you can't open a newspaper these days without learning of some new debacle caused by an official authority that could put you and your family at possible risk of fraud.

And although not all of the security breaches have included bank details, the blunders have certainly shaken a lot of people up, and prompted many to write off for a credit report from one of the three main agencies (Experian, Equifax and CallCredit). In the meantime those affected have been advised to keep an eye on their bank statements for any suspicious transactions.

However, if you've been considering switching current account for a while anyway, you may just think that now is a good time to do so.

We all know that the big four High Street names (NatWest, Barclays, HSBC and Lloyds TSB) pay paltry rates of interest - but many of us stick with them as we've been loyal customers since childhood/University/starting work.

However, there are a huge number of current account providers to choose from these days, so why not see if there's an account out there that better suits your needs? What's more, some are even giving incentives to entice you (and I don't mean a series of pig shaped moneyboxes!).

Top current accounts

For example, top of the Moneyfacts bank account table is the Abbey current account, paying a whopping 8% AER on balances up to £2,500 for the first 12 months (you'll need to deposit at least £1k per month to qualify for this rate). When the bonus period is up the rate drops to 2.5% AER.

 In second position is Alliance & Leicester's (A&L) Premier Direct account, paying 6.5% AER (fixed until 31.1.09) on balances up to £2,500, provided you are over 21 and pay in at least £500 per month. After this time the rate drops to one percentage point below base rate. This account could be especially good for those that tend to dip into the red as it also offers a 0% overdraft facility for the first 12 months.

You can also apply for one of A&L's Plus Saver savings accounts, paying 6% (including a 0.75% bonus until 31.12.08) on balances up to £50k. And if you can find an existing A&L customer to recommend you, you could both earn £25.

The Coventry BS First current account pays an impressive 6.35%AER (including a first year 0.85% bonus). You'll need to be over 21 and pay in at least £1,000 per month. This account is particularly good for those with higher balances as you can earn the same great rate with balances up to £250k (after the first year the rate drops to 5.5%AER).

In fourth position is the Halifax High Interest Current account, paying 6.17%AER on balances up to £2,500, provided you pay in at least £1k per month. And finally, the Norwich & Peterborough BS Gold current account is paying 4.85% AER on balances up to £5k. However, be warned - you will have to pay in £1,500 each month and opt out of paper statements to get this rate (if you pay in £500+ per month you'll earn 3.7% AER).

Free cash withdrawals abroad

For those more interested in the benefits than interest rates, special mention has to go to the fantastic Nationwide BS FlexAccount, which allows account holders to use their debit cards to withdraw cash in ATMs worldwide for free. It also pays a pretty healthy 4.25% AER on credit balances, provided you pay in at least £1k per month. And Smile has a strict ethical policy, meaning that your money won't be used in unethical organisations.

As you can see there is plenty of choice out there, with some accounts paying better rates than a vast number of savings accounts. Find out what sort of current account user you are from reading "Get More Dosh From Your Current Account" and decide which account suits your needs best.

And while many providers do stipulate that you need to pay in a certain amount each month (typically £1k-) don't worry if you don't earn that much - you can generally still open the same account, you'll just earn a lower rate of interest. Stash any extra into a high interest savings account instead and your money can work just as hard.

And if you've been held back from switching in the past due to worries about direct debits being lost, worry no more as most of the providers offer guarantees to make the process as painless as possible (consider leaving some cash in each account until the switch is complete though, just to be sure).

So if you've been thinking about switching for a while, why not check out your options and consider moving to a better current account - you may just find it's worth your time.

More:  How To Protect Yourself From Identity Theft