Bank charges are a factor in choosing bank account

The recent news surrounding overdraft fees and other bank charges has highlighted the fact that choosing the right bank account is just as important as choosing the cheapest energy or insurance deal.

Last week, RBS (Royal Bank of Scotland) and NatWest cut their overdraft charges and unpaid item fees, ahead of a court ruling on the fairness of such charges.

However, an overdraft is not an essential feature of a current account - and customers should decide whether they need an overdraft before they open an account.

A spokesperson for Think Banking said: "There is a lot of choice on offer when it comes to bank accounts, meaning customers have the opportunity to find an account that is suitable for their needs.

"For example, Think Banking provides a managed bank account that can help account holders to avoid the kind of situation where bank charges might be an issue."