Basic bank accounts are similar to current accounts, but with no overdraft facility or cheque book. They are suitable for people who don’t want to go overdrawn, or who might not pass banks’ credit checks for a full current account.

Current accounts offer debit cards, cheque books, allow you to set up direct debits and standing orders and offer overdraft facilities. There is a charge for going overdrawn that varies from bank to bank. Most banks pay interest on credit balances.

Some accounts come with a free overdraft or ‘buffer zone’ up to a certain limit. Overdrafts over that limit will be charged at the standard overdraft rate. If you regularly go overdrawn you need to choose an account with a free overdraft facility.

Student accounts are current accounts aimed at students. They come with cheque books, debit cards and free overdraft facilities. Agreed overdrafts are usually charged at a preferential rate. Most banks offer generous freebies to account openers.

Student accounts revert to graduate accounts and can be used for the year following university. Free overdrafts and preferential rates on overdrafts will apply.