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We take a look at the best bank accounts for your current situation

The importance of choosing the right bank account has never been more key to finding yourself on sound financial ground. With public trust in banking institutions still very much recovering following the problems that caused the recession, it pays to ensure that you are aware of the best bank accounts available for your financial needs.

Because everyone's financial situation and requirements are different, there are different types of bank account available from the vast majority of financial institutions in the United Kingdom these days. Choosing the right one will ensure that your money works the way you need it to, while avoiding unnecessary charges along the way.

There are two main types of bank account available these days; current accounts and savings accounts. When most people think about banking, they automatically think of savings accounts, however these are not necessarily the best bank accounts for everyone.

A savings account is typically an account that offers a much higher interest rate on your savings than a current account. There are quite a few varieties of current accounts available these days, with the main differences between them being the amount of time your money needs to be in the account before you can access it, and the bank fees incurred by withdrawing your money.

As the name implies, these accounts are best used for saving purposes only. While the promise of higher interest rates, and therefore a higher return on your money, are tempting, these accounts aren't practical if you're going to need access to your money regularly.

The alternative is to take a look at the current accounts on offer. These accounts also offer interest on your savings, however the amount is vastly reduced compared to savings accounts as there is no minimum time you need to keep your money in the account for.

Current accounts are best used as the main account from which you will be withdrawing money, paying bills, writing cheques and using a debit card. Think of them as your day to day, multi-purpose accounts.

Many people operate with two separate bank accounts, one for their savings and one for their day to day use. If you think that this is something you might be interested in, then the best bank accounts for you will be the ones that offer the best terms and conditions.

As rates are always changing, we recommend you check out the current offers available from your local banks before deciding which ones are right for you.

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