In the past, many people would stay with one bank for the whole of their adult life; opening an account on leaving school, and still depositing money up to retirement age and beyond. Times have changed. Largely thanks to internet banking, and other developments in the industry, the personal relationships that may formerly have been built up with a branch manager are now less likely, thanks to centralised and computerised control over accounts.

Many of the smaller banks that existed thirty years ago have been swallowed up by the banking giants, and so your loyalty to one brand or another is no longer relevant – it is terms and conditions, and rates of interest that should be your key considerations now. Big is beautiful when it comes to banking, not least because the competition between the giants to deliver more enticing products is probably stronger now than it has ever been when it comes to the market for bank accounts.

Switching bank accounts is now much easier than previously, with the transfer of regular commitments like direct debits now undertaken on your behalf by banks keen to win your business. So what should you be looking for in a bank account?

The answer to this question lies first in your personal circumstances. To be able to pick the product that suits you best, you need to have a clear and honest picture of your finances. Do you often use an overdraft facility? Do you occasionally find that you stray into the territory of the unauthorised overdraft? If the answer to either or both of the questions is ‘yes’, then it is not the headline rate of interest that should drive your search for new bank accounts – it is the terms and conditions of the overdraft facilities.

Some of the highest interest rate current accounts charge the highest rates of interest on overdraft facilities. This is because these accounts are designed for the ‘in credit’ user; those who generally do not need to use an overdraft facility, and are able to deposit a certain amount each month. If you are able to pay a minimum of £1000 into bank accounts each month, for example, there are several products - like the preferred in-credit current account from Santander - that can offer the relatively high rate of interest of 5% (AER). Visit the Santander site for more on bank accounts.

Lower incomes are best maintained in a different type of current account. These accounts will generally offer lower interest, but in return, often cap the amount that you will have to pay for using an agreed overdraft; and additionally, will not hammer you with charges if you stray into unauthorised overdraft. Find out more about the different bank accounts available online, and make sure to take the advice of some of the popular independent money advice websites.