A current account (or cheque account) is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. One of the channels is found online, through the Internet. Since the funds are available at all times these accounts are also referred to as demand accounts or demand deposit accounts.

Current accounts are not intended for earning interest or for the purpose of saving. They are solely intended for the convenience of the business or personal client; so they are not interest bearing accounts. However, a current savings account is available and does accrue interest. A customer can deposit or withdraw any amount of money as often as desired, as long as the funds are available in the current account.

All current accounts offer itemized lists of all financial transactions, either through a bank statement or a passbook. A current account allows the account holder to make or receive payments by cash money (coins and banknotes), cheque and money order (paper instruction to pay), giro funds transfer, direct deposit), direct debit (pre-authorized debit), standing order (automatic funds transfer), ATM card or debit card (cashless direct payment at a store or merchant), SWIFT: International account to account transfer.

Internet or online banking is the system of using a bank or financial institution’s secure website to view available balances and statements, perform transactions and payments, and various other facilities. This can be very useful, especially for banking outside bank hours and banking from anywhere in which Internet access is available. Since the creation of the Internet most retail banking institutions offer access to current accounts via online banking.

In the United Kingdom, nearly all current accounts offer a pre-agreed overdraft facility. The size is based upon affordability and personal credit history. This overdraft facility can be used at any time without bank authorisation (subject to ad-hoc reviews). Although an overdraft facility may be authorised, the money is repayable with terms set by the bank or financial institution. However, this is a rare issue since overdrafts are profitable for the bank and a financial detriment for the customer.

Current accounts may be set up for savings and mortgages. An offset mortgage is a type of mortgage available in the UK and is used for the purchase of domestic property. The primary purpose is the reduction of interest charged by “offsetting” a credit balance against the mortgage debt. This can be achieved when the lender provide a single account for all current account transactions or they make multiple accounts available which allow the borrowers to divide their money according to purpose while all accounts are offset each day against the mortgage debt.

It is easy to apply for an online current account in a matter of minutes. All you need is to share the following, along with your name and contact information:

Your existing bank account info –

Your employment or college info

Estimated monthly income and expenses

A valid email address