Over the past few months several UK banks have seen their stock market values drop as they suffer from the effects of the credit crunch and volatility in world financial markets. The government took control of Northern Rock in 2007. During the late summer and early Autumn of 2008 the government in to save the demutualised building society Bradford and Bingley and brokered a take over of HBOS by Lloyds TSB. In October 2008 the government agreed, as part of a multi billion pound package of measures, to inject capital into the largest banks where they could not raise capital by other means and have since provided funding to the Royal Bank of Scotland - which incorporates Nat West and Coutts, HBOS and Lloyds TSB. The government is now effectively the largest share holder in RBS and has significant share holdings in HBOS and Lloyds TSB.

Building Societies have not been so exposed to the toxic debts problem faced by many banks although the Derbyshire and Cheshire Building Societies were taken over by the UK's largest building society, Nationwide, in September 2008.

In selecting a bank current account do look at interest rates on credit balances - these can range from less than 1% to 5% or more, charges, overdraft fees and interest rates and free offers like travel insurance.

Most UK banks and building societies now offer on-line banking allowing you to manage your account 24/7.

Select a bank or building society in the UK

New to the UK or opening your first bank account? Here is some basic information to help you find your way around.

UK Currency: Pound sterling (£) which is divided into 100 pence or pennies.
For a currency calculator visit Money Tools

Coins: 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2.
Notes: 5, 10, 20 and 50 pounds.

Most major banks and building societies have branches throughout the UK and banking can be done in the branch, on the telephone and often on the internet. Most offer 24hrs cash withdrawal machines and many have the option of internet banking enabling you to better manage your funds. Different accounts suit different needs so be sure to think about what you’re looking for and what’s important to you. Even when you have an account it’s still a good idea to keep up to date with other offers and to move accounts if the rates or service suit you better.

If you’re looking to open a new bank or building society account visit the Business Directory for options

Bank Charges

Many banks offer free current account banking with no charges unless the balance goes into the red. When it does the penalty charges can be very high. The Office of Fair Trading has been investigating the high penalty charges imposed by some banks and it is expected that limits will be imposed.

If you think that you have been over charged you may be able to get a  refund. See the Financial Ombudsman Service website for advice on how to complain about bank charges. Which? includes advice on its website including template letters to download.

For news on the finance industry visit www.moneyjungle.net/news

Looking to open a bank or building society account? Visit the business directory for a list of options
www.moneyjungle.net/businessdirectory

For detailed and independent advice on UK bank accounts visit the new FSA Money Made Clear website which can be found at www.moneymadeclear.fsa.gov.uk.

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