Bank accounts and credit cards

Your average High Street has a large number of banks and building societies with a wide range of products and services.

Banks generally offer two services - looking after your money and lending you money. Before choosing who to bank with think about:

The number and location of their ATMs (or cashpoints)
Will you be charged if you use another bank’s cashpoint?
Does the bank have Saturday or late night opening hours?
Can you keep up with your accounts via the Internet or over the telephone?
What are the charges like?
Does the local branch have specialist advice services?
How easy is it to set up direct debits and standing orders?
How the bank might fit in to your politics.*

Charges and interest paid to you can vary enormously from bank to bank and even between accounts held with the same bank. Financial experts suggest it's a good idea to compare banks and accounts at least every year if you want to make the most of your money. When choosing an account look at:

How much interest is paid on money in your account if you're in credit?
How much overdraft you can have without getting permission from the bank and without paying extra interest?
How high is the amount you may be allowed for authorised overdrafts?
What are the charges for these?

Don't jump straight into an account with the bank that offers the best freebies - a free overdraft may be worth more in the long run.

Opening a bank account is usually straightforward. The bank will require some form of proof of identity such as a passport, ID card, driving licence, National Insurance or NHS card. Check with the bank on what you will need to bring before you apply.

If you get into any problems then get in touch with an adviser at your bank straight away. They'll be able to help you sort it out before it gets out of control.

*If you're worried about the 'interests' your bank might have then you could consider ethical banking. This is becoming big business and there are two banks that lead the field - The Co-op Bank and the Triodos Bank. The Co-op won't lend to oppressive regimes or to companies who make weapons. Triodos gives a donation to the Soil Association for every organic savings account opened.