Best current accounts

The Current Account Switch Service (CASS) process is straightforward and takes just seven working days. Just open a new account with your chosen bank, then request a switch through it – you'll usually be asked during the application if you want to switch. So long as both banks are signed up to CASS (most are), the switching service will close your old account and move your money, Direct Debits and standing orders across. It's worth downloading a few years' statements before switching – just in case you need them in the future.

Note: Switch bonuses require full switches via CASS. Some account types won't qualify – for example, current accounts linked to a mortgage (such as NatWest's One Account).

The switching service will also move payments meant to go into your old account into the new one, for instance, your salary. If something goes wrong, the bots behind the scenes sort it, so for at least three years any money paid into the old current account or wrongly earmarked to come out of that account is transferred to the new one. Also, if you're hit with any charges due to an error in the switch, this should be refunded by the new bank.

More than 50 providers are signed up to CASS:

• AIB (NI)

• Allica Bank

• Allied Irish Bank (GB)

• Arbuthnot Latham & Co

• Bank of Ireland UK

• Bank of Scotland

• Barclays

• Barclays Private

• C. Hoare & Co

• CardOneMoney

• Chase Bank

• Citibank UK

• Clydesdale Bank

• Co-operative Bank

• Coutts

• Coventry Building Society

• Cumberland Building Society

• Danske Bank

• First Direct

• Habib Bank Zurich

• Halifax

• Hampden & Co

• Handelsbanken

• HSBC CIIOM

• HSBC Private Bank

• HSBC UK

• Investec Bank

• Isle of Man Bank

• Lloyds Bank

• Lloyds International

• Lloyds Private Bank

• Metro Bank

• Monzo

• Nationwide

• NatWest

• NatWest International

• Reliance Bank

• Rothchild & Co

• Royal Bank of Scotland

• Santander

• Smile

• Starling Bank

• Think Money

• Triodos Bank

• TSB Bank

• Ulster Bank

• Unity Trust Bank

• Virgin Money

• Weatherbys Bank

• Yorkshire Bank

• Zempler Bank

Quick questions

Are recurring payments from my card also moved?

No. Otherwise known as continuous payment authorities, these are set up using your debit or credit card details, as opposed to your account number and sort code. They're often used for memberships, online subscriptions and payday loan repayments. The company will ask for the long number across your card, giving it permission to take cash from your account.

If you switch, you need to give your new card details to any companies that take money from your card in this way.

Some banks require you to switch 'active' Direct Debits. What does this mean?

An active Direct Debit is one that has paid out in the last 13 months or – if it has never paid out – is less than 13 months old.

Direct Debits have this dormancy rule in place, so old Direct Debits can remain active even if you're not paying out on them every month in case they're needed again, or they're there for annual payments. But after 13 months, your bank may remove them from your account or mark them as inactive.

It's also worth taking this opportunity to do a Direct Debit audit, cancelling Direct Debits you no longer need.

Do I HAVE to close my old account when switching?

Yes, you do have to close an old current account, but this doesn't necessarily have to be your main current account.

You need to switch in an old account to use CASS (and you usually need to do this to get any switch incentives). As part of this process, your new bank will automatically close the old account and move across all payments, such as Direct Debits out or your salary in.

But if you'd rather keep your old current account open, or your old or new bank is one of the few not signed up to CASS, it is possible to use the older, slower and more complicated system. Your payments will still be switched over, BUT there's less protection if anything goes wrong and it's likely you won't get any of the switch incentives.

However, a way around this, to keep your old current account AND still earn a switch bonus, is to open a new 'dummy' account to switch from instead. Open another free account separately, solely for the purpose of switching it: this way you can keep the account open that you already have. Just be sure that the new account is from a provider that's also part of CASS, otherwise the switch won't work and you won't get the switch incentive. Once you've claimed the bonus, you're then able to switch the account again, and you're free to repeat the process.

Can I switch a sole account to a joint account and vice versa?

If you want to join finances with a partner, it's possible to use seven-day switching to switch a sole account to a joint account. Do remember that this'll link your finances, so their credit record could affect yours – always think carefully before doing so.

This doesn't work the other way round, so you can't switch a joint account to a sole account under seven-day switching.

I have other products such as an ISA and credit card with my bank – what will happen to them if I switch away?

Most other products that you hold are totally separate, so moving your current account won't affect the others and it's fine to do. In fact, even if you have a Direct Debit set up to pay them, that'll automatically be moved to your new bank account for you, so it shouldn't put you off switching at all.

There are a few special regular savings accounts that are linked to current accounts (where you get a special rate if you've got the current account) that you could lose if you move bank, but you'll know if you've got one of those and your new bank may offer something similar.

Can I switch my savings account too?

Unlike with current accounts, there's no switching service for savings accounts. Yet it's easy to move your savings – simply open the new savings account and then transfer your money across.

We're currently in an era of fierce competition when it comes to interest rates on savings, with the top rates changing frequently. See Top savings for full info.

With most of the top accounts in this guide, you'll need to pay in a certain amount each month in order to qualify, get the perks and/or avoid a fee. But if you can't afford the minimum, don't fret – there's a way to play the system. Say you need a minimum £1,000, but only have £500 coming in. If you pay £500 in, withdraw it or move it to another bank, then pay it back in... BINGO, that's your £1,000.

Note: We've had reports some banks may not accept you when you apply if your income's not high enough to meet the minimum monthly pay-in. These are the minimum pay-ins for bank accounts we mention in this guide, plus details of what happens if you miss that minimum payment:

Banks will use this credit check, plus data on your application form, to decide whether to accept or reject you for the account you applied for.

If you're rejected, it could be for one of many reasons, for example... you've got a poor credit record, you've had past dealings with that bank where you've missed payments or the bank doesn't think you'll be a profitable customer.

But don't assume because one bank doesn't want you, none of the others will. All the same, don't just apply everywhere as it can do more damage to your credit record.

Instead, you need to do two things – first, ask the bank why it rejected you. Its answer may be vague, but it should tell you if you were rejected because of your credit record.

Then, check your credit files with the three credit reference agencies to spot any problems or possible errors. Our Credit report guide tells you how to do this for free and how to correct errors.

Can't get a standard bank account? Try a basic one

Sadly, as many as one million people in the UK are rejected from mainstream bank accounts, often due to past credit problems. Yet as long as you can prove your identity and address, you should be able to get a basic account – here, you're not credit-checked as strictly, so most can get one.

You can do most of the same things as with a normal bank account, except you won't get an overdraft. Read full help and tips in our Basic bank accounts guide.

Packaged accounts can be great, saving some £100s a year, as for a monthly fee you get a host of insurance policies – typically travel, breakdown and mobile phone insurance.

But they can also be worthless if you don't need the cover or you could have got it cheaper elsewhere, so check first.

For more help on whether this type of account is right for you, see our Best packaged accounts guide.

As long as you're approved by each bank that you apply for an account with, you can have as many current accounts as you like. Accounts come in different shapes and sizes, with different minimum deposits, Direct Debit requirements and potentially fees.

It's important to think about which perks accounts come with. If you see a current account that offers 1% cashback on spending, but you already get cashback from a different account, is it really worth going for? Unless you're maxing out the cashback on the first account, the answer's likely no. The same applies to other perks like overdrafts and linked savings accounts.

You'll also need to consider how you open and manage each account; some can be opened and operated via online banking or an app, whereas others may be branch-based (see our banking hubs near me guide for local bank branch alternatives). You may prefer one over another, or even a mix.

Can I have more than one current account with the same bank?

Yes you can, though you'll usually be unable to open more than one of the exact same current account. So you could open a standard bank account and a packaged bank account with the same provider, but not two of the same standard current account.

The exception is where joint bank accounts are involved. You can often have two of the same current account if you hold one in your sole name and the other jointly. Though here it's worth thinking about how beneficial it is to have two of exactly the same current account. Are you maximising perks, or are you just getting the the same perk twice? You might be glad of a second linked saver, but you wouldn't want to be paying for identical insurance policies.

Quick questions

Does having too many bank accounts damage your credit score?

There's not a hard and fast answer to this question. While opening a new current account usually causes a small dip in your credit score, this should recover quickly.

In theory, having multiple bank accounts won't affect your credit score. However, applying for lots of accounts in quick succession can imply to lenders that you're disorganised with your money. As a result, we often suggest that you avoid doing numerous bank switches if you've important financial applications soon, like applying for a mortgage or loan.

It's also likely that if you're in your overdraft in several bank accounts, this will negatively impact your credit score. Being in the red across more than one account may make it harder to open any more.

For more information on credit ratings and how to keep yours in tip-top shape, head to How to improve your credit score.

Can I have multiple bank accounts if I have bad credit? Having bad credit will make it harder to open a bank account, but not impossible. For many current accounts, banks will run a credit check and you may be declined if you have bad credit.

However, you may still be able to apply for basic bank accounts, which allow you to do most everyday banking tasks such as making and receiving payments, but without any added extras like an overdraft or cashback on purchases.

Warning: If you have any debts on your current account (for example, an unarranged overdraft) and you open a basic bank account at the same bank, it is legally allowed to use any money you have in your new account to pay off the debts in your old one. This is called setting off (read more about how this works).

So if you're opening a bank account for your benefits or State Pension to be paid into, you might want to think about opening your basic bank account at a different bank or building society.

Is it easy to open and manage multiple bank accounts?

How easy it is to open multiple bank accounts will depend largely on your credit score. With a good credit score, you're more likely to be approved by banks to open a current account with them.

You'll also need to think about how each account is opened. Some can be done quickly online or via an app, whereas others may need you to send information through the post or even come into your local branch.

The management part hinges more on how organised you are. If you're happy keeping tabs on where money's going in and out across multiple accounts, then having more than one bank account should be fine.

If the thought of having to keep track of finances moving about over different banks and building societies stresses you out, you might want to keep the number of accounts you have to a minimum.

Can I have multiple savings accounts?

Yes, you can open multiple savings accounts, often with the same bank. Yet this varies from provider to provider.

It can be helpful to open multiple savings accounts to keep savings for different goals separate. You might also consider having a mix of savings accounts which 'mature' at different times – a one-year fix for money you know you won't need to touch for at least 12 months, and an easy-access account to dip into when you need to.

Some banks will allow you to open two of the exact same 'issue' of a savings account, though others may not. And, as with current accounts, you might only be able to open one issue in your sole name, but open the same issue jointly with a partner.

As per usual, it's important to read the small print before applying!

To qualify for switch bonuses you must complete a full switch of an old account using CASS (see which banks are signed up) – you do this through the new bank you're switching to.

Its switch guarantee commits to automatically moving across all payments, Direct Debits and standing orders to the new account, and closes the old one. It's also worth downloading a few years' statements from your old bank before switching – in case you need them in the future.

The account you're switching from must be with a different banking group to the one you're switching to. For example, you won't qualify for First Direct's switch offer if you switch over a HSBC account to First Direct. You can use our tool to see which banks are part of the same group.

Banks within the same group also share Financial Services Compensation Scheme protection – see our savings safety guide for full info.

Many banks often want you to move two or more active Direct Debits as part of the switch to qualify for the freebies (an active Direct Debit is one that has paid out in the last 13 months or, if it has never paid out, is less than 13 months old).

Most require this to be done via the Current Account Switch Service (so you'd need those Direct Debits already set up on the account you're switching), though some will allow you to set them up within a certain time after the switch has completed. If you don't have enough, you could simply set up Direct Debits for a couple of quid to charity to meet this criteria (and give a little back too).

Yet don't do this if you'll just set it up and then cancel straightaway, that will cause admin costs for the charity that will easily outweigh your donation. So if you're doing it this way, commit for at least a year.

Yes, you can switch if you're in your overdraft, but how it works will depend on the bank you're looking to switch to. Your new bank will need to agree to match the amount you're overdrawn by. If it does, they'll send the amount you owe to your old bank, so you'll now owe your new bank instead.

If the new bank doesn't agree to an overdraft, or the one it offers you is smaller than the the amount you currently owe, you'll need to repay the existing overdraft balance (or at least the difference, if there's just a reduction in overdraft amount) with your old bank. This repayment will be arranged by the old bank, who will likely set up a repayment plan to settle the debt.

When sending money to a different account, many banks now use the Confirmation of Payee scheme, which checks whether the name of the account you are sending money to matches up to the sort code and account number you type in. If the name doesn't match, the bank will let you know so you can amend any errors before making the payment.

If your bank isn't signed up, it'll be using the old system, where the only information it'll use is the sort code and account number, meaning if these details are wrongly entered the cash could end up in a stranger's bank account.

If you end up sending money to the wrong account, here's what you need to do and what happens then:

• Contact your bank straightaway to let it know about the mistake. While banks can't stop payments that have already been made, contacting it as soon as possible will help speed up the process of sorting it out. It's a good idea to keep a note of all correspondence you have with the bank and also to make a note of exactly when the error was made. If you know the mistake you made (for example, you used the wrong sort code), then make a note of that too.

• Your bank will act within two working days of you telling it. And it doesn't matter if you discovered your mistake after a week or even a year... though it's good financial sense to keep an eye on your account(s) to make sure your payments have reached the right recipient.

• As long as there are no disputes, your money will be returned within 20 working days. Where there's clear evidence of a genuine mistake, your bank will contact the receiving bank on your behalf requesting that the money isn't mistakenly spent by the person who accidentally received it, and you'll get your money back.

If there are issues, for instance if the person you accidentally sent it to refuses to return it, you'll be notified of the outcome of the bank's investigation within 20 working days from the point that you let it know.

As well as offering in-credit interest or bonuses for switching, some current accounts now pay rewards for holding the account and meeting certain criteria, such as paying in a set amount each month or having Direct Debits.

A few of these, such as the Halifax Reward Account, are paid with basic-rate tax already deducted. Others are paid without any tax removed.

These payments don't count as savings income for tax purposes and instead are classed as 'annual' or 'miscellaneous' payments. This means that the rewards don't count towards your personal savings allowance, and they're liable to be taxed.

If you're a non-taxpayer, you should claim back any tax taken using the R40 form. Higher and additional-rate taxpayers may need to pay more via tax returns.

In the UK, old, now-dormant accounts hold millions of pounds that lay unclaimed – and if you've switched several times, you may still have old accounts that were never closed.

It's straightforward to get it back – we've full details in the Reclaim forgotten cash guide.

A Direct Debit is where you give permission to a company to take money from your bank account, and the amount can vary depending on what you're paying for. You have very little control over how much money is taken, though the company you're paying will tend to send you a statement informing you of how much will be taken and when. And the Direct Debit guarantee means you're entitled to a refund if there are any errors in the payment.

A standing order is an instruction from you, to your bank, to pay a fixed amount of money to an account. You can send a standing order to any account, bill, mortgage payment or organisation. You have full control over how much and how frequent the payments should be, as you set them up yourself.

A recurring payment (or continuous payment authority – CPA) is where you give a company your card details, and they use them to set up a regular or continuous payment from your card. You'll know if it's a recurring payment if you give the company your 16-digit card number, rather than your bank account number and sort code.

They're usually used if you're paying for a subscription, like a TV streaming service or recipe box. With these payments you have very little control over how much or when they'll take out your money, and you usually won't be informed that the company will be taking a payment.

However, you can ask your bank to cancel them, as well as asking the retailer if you want to end the service. See Recurring payments.

See our Bank statement abbreviations guide for an explainer for what the terms on your statement actually mean.

Cashback is a financial reward for spending money – typically a percentage of the amount paid. This money is refunded back to you by your credit or debit card provider, hence the term cashback (even though you won't get physical cash). There are also many cashback sites that offer money back for online purchases, but for the purposes of this piece, we're generally referring to reward bank accounts. Learn more about these websites by reading our Top cashback sites guide.

How much you can earn from cashback depends on factors such as the cashback rate and the amount spent. Reward cards generally have cashback rates ranging from 0.25% to 1%, so, say you spent £100 on a card with a 1% rate, you'd get £1 back. That said, some cards offer attractive introductory rates of up to 5% for a limited period.

Any cashback you earn is typically paid out monthly or annually, and there are no rules against having multiple reward cards. That said, each application can impact your credit score. Other common conditions of cashback spending include:

• Minimum spending amounts to be eligible for rewards, usually over a month or a year.

• Maximum cashback you can earn each month or year.

• Restricted spend categories – for instance, cashback on household bills or supermarket spend only.

• Tiered cashback rates for different spending categories or amount spent – for example, 0.75% for the first £10,000 spent in a year and 1.25% thereafter.

Do bear in mind that you'll be charged interest for failing to clear the outstanding balance on a reward credit card, something that could wipe out any gains made from cashback. Similarly, many providers charge a flat fee to simply use a reward card, which will also eat into your earnings.

When switching account to get a switch bonus, you'll need to close and switch an old account using CASS. This is done through the new bank you're switching to. All payments, Direct Debits and standing orders are switched over to the new account.

You'll usually need to fulfil certain criteria to qualify, such as depositing a certain amount (either as a one-off or monthly), using the bank's app, or opening one of its linked savers. It's important to check this criteria carefully before switching, as failure to complete any of the steps will mean you don't get the switch bonus.

Note: Some account types won't qualify for switch bonuses – for example, current accounts linked to a mortgage (such as NatWest's One Account).