A Current Account is an excellent savings or investment vehicle that reaps significant tax advantages. There are many types of Current Accounts available, allowing an individual to customize an account to best meet his individual financial needs.

One of the decisions you will need to make when opening an Current Account is whether your money would be better kept in a cash account or in stocks and shares. This article will take a look at the two different types of Current Accounts available so you can choose the best one for your situation.

Cash Current Accounts

A Cash Current Account is similar to a standard savings account, but with distinct tax advantages that a basic savings account does not provide. The contribution limit for a cash Current Account is £3,600 per year, which is half of the total amount you can put into Current Account accounts annually. This means that you can open both cash and stocks Current Accounts and put a total of £7,200 into both. Or you can open a single cash Current Account and deposit £3,600 each year.

Current Accounts come in a variety of products, and you can choose from a fixed rate or notice accounts. The interest rates on Current Accounts vary greatly, depending on current market conditions and the financial institution you work with, so it pays to shop around to find the best deal for your needs.

If you prefer a high interest savings account only, with tax free savings, you may wish to read more about an isa.

Alternatively find out more about commercial banking if that is better suited to your needs than a current account.

If you need advice on your accounts and investments, please visit investmentmanagement.co.uk to speak to a qualified adviser.