In today’s sophisticated financial sector, switching current bank accounts to save money is about as savvy as you can get.

As with all financial products, people should not thank that they owe their bank loyalty, or indeed, stay with a bank just because they have done so for years.

Banks are smart operators when it comes to what they will offer their customers and they realise, as everyone should, it’s a highly competitive market and in today’s comparison world, the consumer has the edge.

Without a good bank account comparison website, it would take a log time trawling through all the bank accounts of offer to find the right one for you.

Now one caveat on all that. People do build good relationships with their banks and there is something to be said for staying loyal if that translates to a good account and other financial product deals, such as loans and mortgages. That said, even those with good bank relationships, can always look to opening another account if that suits them at the time. Nothing is fixed in stone in today’s modern personal finance sector.

Current accounts come in various types which tend to include high interest current accounts, business current accounts and current bank accounts.

A good current bank account comparison tool should be able to calculate what you might gain per year from a different account.

They should also divide the accounts into key categories, making comparison easier. You could then start off by comparing all current bank accounts, then easy access accounts, straightforward current accounts, fixed rate accounts and ISAs.

This allows the user to then take each category in turn and see which account offers then the best deal.

Take the category current accounts. The information laid out before you should include the financial institution offering the account (Alliance & Leicester, NatWest for example), the account name (something like Premier Current for example) and any incentives to attract you as a customer, or keep you as a customer; how much interest is paid, if any, and when; and, details about any overdrafts that might be available and what interest rate is charged.

So there you are. Choose a good current bank account comparison website and it’s all mapped out in front of you.

Guest Article by Neil Camp

Those looking for the best child trust fund in which to grow their offspring’s nest egg might be interested to learn that financial advice magazine Investment Life & Pensions Moneyfacts has once again chosen the same team, for the fourth time.

Taking the accolade is The Children’s Mutual which fought off more than 70 Child Trust Fund providers, including several national banks and building societies, to win the celebrated award.

Investment Life & Pension Moneyfacts come to their decision via their own analysis, plus opinions of its IFA readership. They state that the award recognises companies that have consistently offered the most competitive products, the best levels of service and shown the greatest innovation during the last 12 months.

Tony Anderson, marketing director of The Children’s Mutual, said:
“This is a great achievement for the organisation. To win the award every year since it was introduced makes me immensely proud of the hard work and professionalism of our employees here in Tunbridge Wells and our colleagues in partner relationships in Cheltenham and Glasgow.

“We try very hard to put customers at the heart of what we do and as a result we are the choice of one in four families opening a CTF account for their children. I’m delighted that our hard work and high standards continue to be recognised by professionals in our industry too.”

Richard Ealing, editor of Investment Life & Pension Moneyfacts, said:
“The Awards have become a highly sought after accolade of excellence within the financial services sector and recognise the outstanding achievements of providers which offer the very best products and service levels. The Children’s Mutual must have a winning formula. Being presented with this prestigious award on no less than four consecutive occasions is a magnificent achievement.”

Child Trust Funds are a government initiative. It sets out to provide a tax efficient, long term savings vehicle for all eligible children and each eligible newborn child (born on, or after 1 September 2002) receives a £250 Child Trust Fund voucher, or one worth £500 for low income families). This is given by the Government when their parents register for Child Benefit. A second contribution of £250 (£500 for low income families) will be given by the government when the child reaches seven. Furthermore, parents, family and friends can all then add to this account up to a maximum value of £1,200 each year.

The Children’s Mutual is one of many tailor-made funds that offer a home for the government’s largesse. They claim to be the only UK company that specialises in long term savings for children. And they say that they are currently the choice of one in four parents for their child’s Child Trust Fund, with more than 700,000 accounts. And, they add, this expertise has led several financial institutions and family-focused high street retailers to choose The Children’s Mutual as their stakeholder Child Trust Fund provider.

Guest Article by Neil Camp

For those worried about their building society surviving the bad times, the media is reporting that those in trouble might be given access to the asset-protection scheme which is backed by the government.

Although good news, this move actually signals the Treasury’s deep concern over the state of the building society sector. This is mainly down to the government regulator, the Financial Services Authority (FSA), forcing all financial institutions to get ready for an eventual 50% fall in house prices and an even worse commercial property downturn of 60%.

Those societies deemed unable to cope with such a nightmare scenario might be propped up by the asset-protection scheme, one that is currently being used to offer support for the Lloyds Banking Group and RBS.

The West Bromwich Building Society, already featured in this blog, is one of the institutions on the FSA watch list. It is thought that it is being asked to show it could weather a £100 million loss on its commercial property book. Such losses could mean a fifth of its capital could disappear; something that is worrying the FSA.

And with holes in their capital bases, building societies, along with other financial institutions, could be forced to look out for fresh money to shore-up their balance sheets. Unfortunately, going to the markets might not be an option, with the government having rocked confidence with a decision that saw the coupon payments of a number of Bradford & Bingley debt instruments being cancelled.

So with the money markets in no mood to risk money in an increasingly fluid situation, the government’s help might be needed.

Guest Article by Neil Camp