How to pick the right one

When thinking of opening a current account, consider what you want to receive from the service. This will depend on your personal circumstances. If for example, you are a student, then you may want an account offering a free overdraft facility and a student advisor to guide you in your money spending habits. If you are a graduate you will probably want a credit card, a low interest overdraft and a high interest rate on savings. For people new to banking, a no frills service with a cash card may be all you desire for simple day-to-day banking. And, for those using banking for business or other purposes, a more targeted service might be preferable. Many fee-charging accounts offer 24 hour telephone and internet banking services, international personal banking, multi-currency accounts, offshore banking and personal finance managers.
Before looking at added benefits and bonuses, focus first on the basic provisions of current accounts:
Credit interest rates
If your balance is generally in credit, then look for an account which offers high credit rates. You might also want to look for accounts which will automatically ‘sweep’ your excess savings into higher interest accounts. Accounts which do this save you continually monitoring your account and time needed to transfer money.
Overdraft interest rates
If you think you will be overdrawn quite often, then look for accounts which have high overdraft limits and charge the lowest rate of interest on them. Some accounts have very high fees for unauthorised overdrafts. Even if you normally stay within your limit, check with the bank or building society how these charges apply and you will quickly discover which banks are most flexible.
Current Account Services
Once you have decided upon an account with competitively good interest rates on overdrafts and credit, you should look at the way that you want to bank. If it is important to you to have face-to-face contact and regular dialogue with your bank, then choose an account which has a branch near to where you live. If you can do without face-to-face contact, you may find that an online bank is a more practicable and cheaper option. Online banks save money by having fewer employees and cutting rent costs High Street banks have to cover. These savings are reflected in the overall charges that you, as the consumer, pay. For information on online banking, click on the Guide to Online Banks. 
Direct Debit Payment
Paying bills and making other payments is one of the most important functions of a current account. And the most popular method of doing this is by Direct Debit.
According to BACS (the Banker’s Automated Clearing Services), Direct Debits are used by over 35 million people in the UK. They are a time-efficient and cheap way of paying bills and other payments. Rather than writing cheques constantly, and worrying about whether you will remember them in time, Direct Debits are an automatic service which does it all for you. In an agreement between you and an organisation, you agree on an amount to be deducted, when and how frequently. The organisation then takes this money from your account on a monthly or quarterly basis.
Paying by Direct Debit allows you to budget more effectively, by spreading the load across the year. They can also save you money as many organisations offer discounts because they feel it is a more reliable way of receiving money. And of course, you are given peace of mind, knowing your bills will be paid automatically and you won’t miss dates.
Although you are agreeing to another person or organisation having access to your account, this method of payment is still safer than paying by cheques which can get lost in the post. A careful vetting process and close monitoring from the banking industry ensures that organisations remain true to their customers. In the event that a payment is made in error the Direct Debit Guarantee entitles the holder to a complete refund.
Changing your current account
If you have applied for a new current account and have been accepted, don’t be too hasty in closing your old account. It can sometimes take one or two weeks before all the new documentation arrives with you. This is because PIN (Personal Identification Number) codes, cash, debit and/or credit cards are sent separately in the post. This is a security measure to prevent fraudsters who intercept the post, from obtaining your details.
Whilst the new documentation is being sent, you can spend your time wisely going through bank statements and taking down details of Direct Debits or standing orders which you may have. When you have the details, you will be able to call the relevant organisations; and inform them of your new bank details.
However, many banks will aid you in the switching of accounts, if you ask them. So it is worth while enquiring what sort of account-switching services they offer when you apply. Lloyds TSB offers a special Account Transfer Unit to do just this. Some of their services, which are also provided by other banks like HSBC, include transferring Direct Debits and standing orders, transferring salary and other credits, and closing old accounts once the new one is up and running.
Aside from savings accounts, banks do not usually stipulate a particular length of time for which an account must be held open, so switching accounts is something you can do whenever you want. By checking the interest and overdraft rates on current accounts shown at Forium.co.uk, you can keep yourself updated with the best account deals which are on offer.