Why should I open a new current account?

Why should I open a new current account?

A current account is a safe and easy place to manage your money. Whether you need a place for incoming and outgoing payments, to keep your spending money to hand or maybe even some savings, there are so many benefits.

It can also be super easy to open a current account – especially with thinkmoney!

What is the best current account to open?

When it comes to choosing the right current account for you, there are multiple advantages and disadvantages for you to consider. Whether that’s the cost of the account, the ease of using it, banking fees and interest rates or any additional benefits and features.

Some of the main current accounts out there include:

Standard current account: An everyday account for your income and outgoings with the option of an overdraft.

Basic account: This is the simplest account available. It works the same as a standard current account, without any risk of overspending since there’s usually no overdraft. Here at thinkmoney, we offer a basic bank account open to everyone – even those with bad credit.

Packaged accounts: These offer more than a current account with a small fee. The extra perks may include insurance, car breakdown cover, special offers on interest rates and more.

Student current account: This allows access to larger overdrafts with lower interest rates and benefits, including discounts, to help those in further education.

What are the benefits of a current account?

There are so many benefits of having a current account. The advantages will differ depending on which one you choose, but here are the most common benefits you will find across them all.

Make payments with ease

Whether you’re paying your bills or transferring money, you can do so easily and securely. You can even do so on the move with a banking app!

Take control of managing your money

With online banking and your banking app you can see exactly how much money you have whenever you want to help make budgeting easy.

Build your credit score

As long as you pay your bills on time, don’t go into your overdraft and avoid bank charges, your account can help to build your credit score. ¾ of thinkmoney customers have done just that!

Other benefits:

Safe and secure place to store your money

Your salary and any other income can be securely paid into your account. The Financial Services Compensation Scheme (FSCS) covers customers of authorised financial services firms to protect their money. As thinkmoney is an authorised electronic money institution, we are not protected by the FSCS, but as we are authorised and regulated by the FCA, all of your money will be protected.

Gain interest

Each account will be different, but many will offer interest, particularly to new customers. Some may have low rates but it’s extra money you wouldn’t gain without an account.

How to open a current account

The procedure to open a bank account is easy when you’re prepared; when you know what documents are required, what type you want and if you’re eligible. You can either open an account in the bank or over the phone, although you would still need to take your documentation into the bank. You can also do so online if you have opted for an online only bank, like thinkmoney, which offers a quick and simple process to open an account.

Here’s a step-by-step guide on how to open a current account:

1. Enter personal details - including full name, date of birth, contact details, nationality and national insurance number.

2. Proof of address – this can include a recent utility bill or mortgage statement.

3. Proof of identity – including a passport or driving licence.

4. Credit check – this will depend on the bank and the account you’ve opted for, but the bank will use this to check your eligibility for the account.

How long does it take to open a current account?

As long as you have all the relevant documents to hand, it won’t take too long to finish the initial process of opening an account. You will then have to wait to be approved, which could take a day or two, and then wait for your card and PIN to arrive in 5-10 working days – the card and the PIN will arrive separately.

However, with thinkmoney, you can skip the approval process. As long as you are aged 18 and over and live in the UK, you are eligible for an account. You can set up your account in 10 minutes, so you then just have to wait for your card to arrive.

Could I be rejected for a current account?

In short, yes you could. Most banks have a criteria that you will need to meet before they will accept you. If you have bad credit, CCJs, or have been bankrupt, you are more likely to be rejected from traditional banks.

At thinkmoney, we accept everyone who is eligible for an account. So, if you have bad credit, don’t worry, you can still bank with us.