If you are always in credit

The average credit interest rate for a £1,000 balance has slumped to 0.76% from 1.91% two years ago, said Defaqto, the data firm.  Up to 6% can be earned on balances up to £2,500 from Alliance & Leicester’s Premier Direct Account if at least £500 a month is deposited.   It also has a 0% rate on authorised overdrafts for a year.

Dipping into Overdrafts

The lowest rate for arranged overdrafts comes from Cahoot, which charges no interest up to £100 and a rate of 11.8% up to £1,000.   Citibank offers a £500 interest-free overdraft on the Citibank Access account.

If you want Benefits

About 25% of adults earning more than £50,000 pay a monthly fee for their current account, according to Mintel, the market researcher.  Fees can be up to £20 a month but only 12% of those with the accounts use all the benefits, said Which?, and only a handful of accounts offer benefits outweighing account costs.  Some deals can be worth it, though.  Barclays Additions Active offers worldwide multi-trip insurance for families worth £191, against the account’s cost of £180 a year.  It also has a 12.9% authorised overdraft rate and a £300 interest-free overdraft limit.