What counts as a current account?

brokenHaiku

Daft question! My other half and I want to get a joint account to pay the mortgage and all household bills from. I don't especially want to give up my personal current account, so the question is, should we be going for a current account or a savings account? Do current accounts insist you deposit your salary in there?

Thanks!

Peter

KTF

Current accounts let you set up direct debits and standing orders which savings accounts do not.

Not all current accounts ask you to deposit your salary with them. It depends on the t&c of the account.

Paul_Herring

brokenHaiku wrote: »

I don't especially want to give up my personal current account,

You don't have to. Many people have more than one current account in their own right anyway (I have 3 - LTSB, NW and Barclays)

so the question is, should we be going for a current account or a savings account?

You're after a current account, since the average balance is likely to be low enough to make any difference in interest earned negligable. And most savings accounts don't allow direct debits, which is how I'm assuming most of your bills will be paid.

Do current accounts insist you deposit your salary in there?

Not all, in fact very few. The ones that do have 'requirements' are usually ones with high interest rates, and the actual requirements usually involve a minimum monthly deposit (£500 and £1000 being common numbers,) rather than a blanket requirement that your 'income' must be deposited.

Note: Do not feel obliged to open an account with the bank that holds your (or your partner's) current(!) current account - only do so if it offers favorable terms (high credit/low debit interest rates e.g.)