Should you pay for your current account?

Most bank accounts come with costs, hidden or otherwise, and choosing the best can be a minefield

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The death of free banking has been much talked about in recent years. In an environment where banks constantly chase profits in order to please shareholders it seems almost mad that some of their most popular products – current accounts – are still, on the face of it, free.

In reality, current accounts are far from free. We pay for them through extortionate overdraft fees and charges, and pitiful interest rates if you stay in the black. But, the difference between these stealth charges and an upfront fee are important psychologically. A recent survey by PwC found that half of us would switch providers if our bank tried to start charging us for our current accounts.

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