Bank charges and interest

 
Bank Charges
Depending on the type of current account you have, you may have to pay a monthly or annual fee. This fee varies and is related to the kind of facilities that your account provides. Accounts with fewer services, such as the Abbey or the Lloyds TSB Classic accounts, carry no monthly fee. However those with more services, like overdrafts or internet banking often charge a fee every month. This is usually around ₤10 or ₤15. In general, the more benefits and services, the higher the banking fee you can expect. All banks and building societies are required by law, to provide details on their charges, however some display these more clearly than others.
Whilst not all banks charge fees, third parties who are connected to your account can sometimes impose extra taxes. Bank charges which can be avoided are those caused by unauthorised overdrafts or bouncing cheque or card transactions. Regularly checking your bank statements can help you avoid spending more money than you have. In the event that you do spend more than your agreed upon limit, many banks won’t charge you if it is a relatively small amount, and once you pay it back quickly. If you can foresee that you will be exceeding your overdraft limit, then often a phone call to your bank will be enough to temporarily extend your overdraft and save you unnecessarily high interest on unauthorised overdrafts.
Where, and how, you access your money can also take its toll. LINK, ATM and other cash machines can charge a small fee just for using them. Avoid such costs by checking with your bank, which machines are free to use and which carry a charge. If you are planning a trip abroad, a glance over the terms and conditions of your account, can show you which cash withdrawal machines will be free, and those to avoid when possible.