5. What are the overdraft arrangements?
If you sometimes need to borrow in the short term, you may want to look closely at the overdraft facility your bank account offers.
Arranged overdrafts are those agreed with your account provider in advance. These will be cheaper than going overdrawn without permission, which can incur large fees and also affect your credit rating.
To compare overdraft charges look at the Equivalent Annual Rate (EAR) and any other fees. The EAR shows how much borrowing would cost if you were overdrawn for a year. Also look at the limits for fee-free arranged overdrafts.
6. What fees will you pay?
You won’t usually pay any fees for a standard current account, but you may have to for packaged bank accounts (accounts which charge a consumer a monthly or annual fee) or for facilities like an overdraft. Monthly fees can seem quite small, but it makes sense to add them up to see if you could get the benefits cheaper elsewhere.