How Can I Find the Cheapest Overdraft?
There are lots of banks that will offer an overdraft but trying to find the cheapest one can be tricky. This is because the rates are variable and this means that they can change. There are also so many different banks that it can be hard finding out who is offering what and perhaps even which banks even exist.
It can be tempting to go to a comparison website and then use that to compare the different banks. Although this might seem like a really good idea it may not be. This is because you will find that the sites do not include every single bank. Even if you look at several different comparison websites, it is unlikely that you will see every bank. This is because the comparison websites make their money from commission. If you click on a link on their website and take out an account as a result they will get paid some money. They are therefore not only likely to only list banks that pay them commission but they will also possibly favour those which pay them more commission and therefore only include those on their website. So, you could find that you will be missing out on some much better rates but you are not seeing them on these sites.
You can go to search engine and then just look for every bank and building society and then look up their current account and check out the interest rate. This will take some time and you still may miss some. This is because it is not easy to be listed high up on a search engine and so some banks may come so low down that you do not see them but they may have the best accounts for you.
There are some finance websites which will let you know what some of the best rates are at the moment. These can be very useful but you do need to make sure that they are no biased. Some will get commission on leads, like the comparison sites and so may rate certain banks higher for this reason or miss some out. So, try to be wary and use sites that you trust and feel will not have bias in this way.
If you go to a financial advisor then they will know about all the accounts that are available and they will be able to let you know. This can be a guaranteed way to get the help that you need because they are not allowed to take commission and are therefore not biased. However, you will have to pay them for their time and help and therefore you will need to think about whether you think that it is worth doing this or whether you would rather do the searching yourself and not pay.
Lastly, it is really important to think about that overdraft and the cost of it. Consider whether the cost of the overdraft is the only thing that you should be concerned about. You will be taking out a current account with this bank and so they will be dealing with your direct debits, standing orders, salary being paid in and all of your day to day banking transactions. This means that you will surely want to use a bank that you can trust and this could be as important to you as using one that offers you a good interest rate. So make sure that you think about value for money as well as cost and then you will be able to ensure you get the best deal.