If you have never opened a current account before, you may be wondering: what is a current account? And more importantly, will you get a bank sign up bonus when opening one?
What is a Current Account?
A current account is a type of bank account similar to checking and savings accounts in that it allows you to deposit money, withdraw from an ATM, and pay bills online or through the mail (or phone).
Current accounts can be used for direct debits and standing orders—two ways your money is automatically transferred from your current account to another person or company’s account. These transfers can take many forms: paying off debt, paying rent or mortgage payments, transferring funds into other accounts and the list goes on!
What is a Current Account Bonus, and how to get it?
A current account bonus is a reward for opening a current account. Usually, it’s some form of cash or voucher. The amount varies from bank to bank, but some banks will give you an overdraft or interest on your savings.
Does every current account give a bonus?
You can only expect some current accounts to offer a bonus just for opening it. Most banks and building societies offer a standard interest rate, but some will reward you for switching with an introductory or welcome bonus.
It’s important to find out what kind of rates different current accounts offer before you sign up. You might be able to work out which one is best for your needs based on the annual percentage yield (APR).
“Get a $250 bonus with qualifying direct deposits,” as SoFi experts say!
What are the different current account bonuses offered by banks?
There are a number of different types of current account bonuses, each with its own terms.
Some current account bonuses require you to transfer your salary into the bank’s current account and keep it there for an agreed period of time before taking out the money again. These are called “salary switch” or “salary top-up” deals and can be quite profitable if you’ve got a lot saved up in your savings account and want to earn high interest on it quickly.
Some banks will give you reward points when using their debit card in the same way that some credit cards do.
The number of points depends on how much money is spent and how often it’s used; usually, they’re worth between 1p – 2p per pound spent at supermarkets or other retail shops (or similar). So this is free money that has no other strings attached!
Other banks offer cashback schemes where customers receive discounts on certain products when buying them through their online website or shop. For example, if someone buys groceries online from Sainsbury’s Bank (an online-only bank), they would get 10% off their shopping cart total as well as receive 0% interest on any balance transfers made during this period (18 months).
Applying for an account is very simple and straightforward, making it even easier for those who want to apply without any hassle.