1. MoneySavingExpert.com
  2. Banking

In this guide

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe
Best bank accounts

Best bank accounts

Get up to £130 to switch, up to 3% back on bills or up to 2% interest

Martin Lewis
Martin Lewis
Updated 13 September 2021

If you're unhappy with your bank, switching is quick and easy, and some even offer (legal) bribes to entice you to choose them – often free cash or vouchers. Yet you don't always need to switch to get a good deal – other accounts give cashback on bills or pay savings interest. This guide explains it all and helps you compare the top-pick accounts.

Top-pick bank accounts

Other top MSE banking guides...
Packaged accounts: Save £100s on insurance
Need a business bank account?: For the self-employed
Basic bank accounts: For those with poor credit histories
Digital banking: Learn about app-based banks

illustration

What is a current account?

A current account is a type of bank account that keeps your money secure and helps you manage your finances. They give you an easy way to make payments to others (including standing orders and direct debits) and let people pay you (for instance, your employer). You'll also get a debit card, which allows you to make payments and withdraw money from a cash machine.

While you may use other money products, such as credit cards or savings accounts, it's generally your current account that lets you make payments into each one, or pay bills, meaning everything works smoothly together.

Is my money safe?

Your money is secure – the Financial Services Compensation Scheme (FSCS) guarantees up to £85,000 per person, per financial institution. This means that if your bank ever went bust, you would be guaranteed your money back (up to £85,000). We've noted for each account what protection it has. 

How do I open a current account?

Opening a current account is an easy process. The simplest way is to complete an application online, though many banks do allow you to open an account in person or over the phone if you prefer.

The application form will ask you a number of questions regarding your personal and financial circumstances, and usually takes about 10 minutes to complete. Sometimes there could be extra steps – such as having to supply ID or payslips – though this is rare.

You will also need to agree to the bank credit-checking you when you apply, regardless of whether or not you request an overdraft. This is because most banks use information from the credit reference agencies to confirm that you are who you say you are. This may seem unnecessary, but banks are legally bound to ensure they do not make money laundering possible, and establishing a customer's true identity helps them to do that.

The five bank account need-to-knows

There are a few points you need to think about when choosing a new bank account to ensure you make the right selection:

  • 1. Switching is easy and takes just seven working days

    If you want to switch bank, there's nothing stopping you, even with the coronavirus crisis going on.

    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. Provided both banks are signed up to CASS (most are), the switching service will close your old account and move your money, direct debits, standing orders etc across.

    It'll also move payments meant to go into your old account into the new one, for example, 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 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.

    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.

    • Do I HAVE to close my old account when switching?

      Yes, if you switch via CASS (which you usually need to do in order to get any switching incentives). As part of the process, your new bank will automatically close it and also move all payments, such as direct debits out or salary in, across.

      But if you'd rather keep your old account open, or your old or new bank is one of the few not signed up to CASS, you'll need 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.

    • 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.

    • Which banks and building societies are signed up to CASS?
      More than 40 providers are signed up to the Current Account Switch Service (CASS):
       
      • Acorn Account
      • Adam & Company
      • AIB (NI)
      • Allied Irish Bank (GB)
      • Arbuthnot Latham & Co.
      • Bank of Ireland UK
      • Bank of Scotland
      • Barclays
      • Barclays Private
      • C. Hoare & Co.
      • CardOneMoney
      • Clydesdale Bank
      • Co-operative Bank
      • Coutts
      • Coventry Building Society
      • Cumberland Building Society
      • Danske Bank
      • First Direct
      • Habib Bank Zurich
      • Halifax
      • Hampden & Co
      • Handelsbanken
      • HSBC
      • HSBC Private Bank
      • Investec Bank
      • Isle of Man Bank
      • Lloyds Bank
      • Lloyds International
      • Lloyds Private Bank
      • M&S Bank
      • Metro Bank
      • Monzo
      • Nationwide Building Society
      • NatWest
      • Natwest International
      • Reliance Bank
      • Royal Bank of Scotland
      • Santander
      • Smile
      • Starling Bank
      • Tesco Bank
      • Think Money
      • Triodos Bank
      • TSB Bank
      • Ulster Bank
      • Unity Trust Bank
      • Virgin Money
      • Weatherbys Bank
      • Yorkshire Bank

      Last updated March 2021.

  • 2. Many accounts have minimum pay-in requirements – but you can get around them

    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 min £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:

    Top bank accounts ranked by minimum pay-in

    Account Min monthly pay-in Equivalent salary/yr needed (1) What if I don't pay in this much?
    Virgin Money current account None N/A N/A
    First Direct 1st Account None N/A N/A
    Nationwide FlexPlus None N/A N/A
    Santander 123 Lite £500 £6,000 No cashback paid
    Barclays Blue Rewards £800 £9,700 No rewards earned
    Co-op Bank Everyday Rewards £800 £9,700 No rewards earned
    Bank of Scotland Vantage £1,000 £12,400 No interest paid
    Nationwide FlexDirect £1,000 £12,400 No interest paid
    NatWest Reward £1,250 £16,700 Transferred to NatWest Select account
    RBS Reward £1,250 £16,700 Transferred to RBS Select account
    Club Lloyds £1,500 £21,200 £3/mth fee
    Halifax Reward £1,500 £21,200 £3/mth fee and no reward that month
    HSBC Advance £1,750 £25,600 Transferred to HSBC's Bank Account

    (1) This is an estimate and will be higher if you have anything taken out of your pay like pension or student loan contributions.

  • 3. If you're often overdrawn, focus on the account with the cheapest overdraft, not other benefits

    Almost all major banks now charge about 40% interest for overdrafts: double what it costs to borrow on a high street credit card. But a few banks charge less, and some even offer 0% overdrafts – so if you're in the red, have a look at the top overdrafts section below for the cheapest options.

    It's worth noting that you CAN still switch if you're overdrawn – but it's tricky as it depends on the new provider's lending procedure. For example, it could decide not to offer you an overdraft, or could offer you a lower limit. Yet don't let that put you off trying – many banks have eligibility checkers so you can see if you're likely to get the overdraft before applying.

    For more help if you're struggling with your overdraft, see our full Cut overdraft charges guide.

  • 4. All the top bank accounts require you to pass a not-too-harsh credit check

    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.

  • 5. You could save £100s on travel, mobile & breakdown insurance with a packaged account

    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.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe

Top bank accounts with freebies for switching

Six banks currently offer switch bonuses – four pay straight cash bribes (three of which, unusually, are available to existing customers), one pays a cash and voucher combo, and one gives a gift card. Read carefully as you need to meet certain conditions to get the bonuses.

Santander 123 Lite current account webpage

Santander 123 Lite*

Free £130 for new and existing customers who switch to Santander, plus 1-3% cashback on household bills for £2/mth fee

Apply*

In addition to the £130 bonus for switchers, the Santander 123 Lite* gives tiered cashback on certain household bills for a £2 monthly fee. Provided you pay by direct direct, you get:

  • 3% back on water bills
  • 2% back on gas and electricity bills, and Santander home insurance and life protection
  • 1% back on council tax, mobile, home phone, broadband, and paid-for TV bills, and Santander mortgages

Cashback is capped to £5/month in each tier (so a max £15/month). Those with mid-to-large bills can make around £40-£80/year after the fee – you can use the calculator on Santander's site to check how much you could earn. To get the cashback you need to pay in £500+/month (its way of saying your salary must go in) and use digital banking.

Santander also pays the free cash if you switch to its Everyday or 123 accounts, though the 123 Lite is the best of the bunch. Existing Everyday, Lite or 123 customers switching in a non-Santander current account can get it too, but have to do the switch in branch (unless opening a new current account).

How Santander rates on service

61% GREAT
26% OK
13% POOR
DATE: JULY 2021. VOTERS: 660

To get bonus: Apply, then within 60 days: switch (2+ direct debits must be moved or set up), register & log in to its mobile app, and pay in £1,000+.
Minimum monthly pay-in: £500 (equates to a £6,000 annual salary)

In-credit interest: None

Who's eligible for offer: You can't have had a switch bonus from Santander before, and you can't be switching from Cahoot or Cater Allen
When £130 bonus is paid: Within 90 days of account opening
Does it have full FSCS savings protection? Yes, but it's shared with Cahoot

  • What should I watch out for with the cashback?

    You only get cashback on direct debit payments made directly to 'qualifying suppliers'. While this includes all the biggest firms we sampled, it's worth checking your council and utility providers are covered before getting the account.

     

    You won't get cashback on any bills paid by recurring card payment (for example, Netflix, Amazon Prime Video, some Sim-only plans from providers such as Voxi), or on your TV licence payments.


    If your water bill is included within your council tax bill, you'll only get 1% cashback on the lot (Santander says this is because it's not possible to identify what portion of the payment relates to water).

  • Is the main Santander 123 account worth it?

    The main Santander 123 account comes with the same cashback on bills, plus 0.3% AER variable interest on up to £20,000 – for a higher £4/mth fee.

    But given that normal easy-access savings pay 0.65% with no fees, and you can get the same cashback from the cheaper 123 Lite account, the main 123 account won't be worth it for most.

Arranged overdraft cost: 0% for four months (only if you switch to this account). Then 39.94% EAR variable
Unarranged overdraft cost: 0% EAR variable

APPLY*

Nationwide FlexDirect current account webpage

Nationwide FlexDirect

New. Free £100 to switch to Nationwide, or boost it to £125 if you're an existing customer (or with a little effort) – plus a year's 0% overdraft and get 2% interest on up to £1,500 in the first year

Apply

Nationwide's free switchers' £100 is across a range of accounts, but the standout is the fee-free Nationwide FlexDirect as it offers a year's 0% overdraft too – depending on your creditworthiness. Plus you can get 2% interest on £1,500 in the first year.

  • How to boost this to £125 if you're an existing Nationwide member. If you've already got its FlexDirect, FlexAccount or FlexPlus account, and have a non-Nationwide current account you can switch into it, you get £125 via selecting 'Switch to Nationwide' in online banking.

    Or if you've another Nationwide current account, mortgage or savings account, open one of the three 'Flex' accounts above, and request the switch during application.

  • Trick to get £125 if you're not an existing Nationwide customer. Open the FlexDirect account via the link above but DON'T request to switch during application – wait until the day after it's fully open, so you're then a Nationwide member, and at that point in online banking request to 'Switch to Nationwide' to get the £125.

PS: You can also get the free cash on our top-pick account for insurance, which gives £500+/year of travel, mobile and breakdown cover for £156/year – see full FlexPlus info.

How Nationwide rates on
service

67% GREAT
13% OK
19% POOR
DATE: JULY 2021. VOTERS: 848

To get bonus: Start a full switch to a new or existing FlexDirect account online, including at least two direct debits. The switch must complete within 30 days
Minimum monthly pay-in: None for the bonus/to hold the account (£1,000/mth for the interest)

In-credit interest: 2% AER fixed in year one (on up to £1,500), 0.25% AER variable after (on up to £1,500)

Who's eligible for offer: Anyone, unless your existing Nationwide account's in debt collection or has been frozen
When £125/£100 bonus is paid: Within 10 days of switch completing
Does it have full FSCS savings protection? Yes

Arranged overdraft cost: Year one: 0%. Years two+: 39.9% EAR variable
Unarranged overdraft cost: N/A (Nationwide will try not to let you go over your overdraft limit)

APPLY

HSBC Advance*

Switch to HSBC and get £110 cash and a £30 Uber Eats voucher, plus access to a linked 1% regular saver

Apply*

Newbies switching to HSBC's Advance* account can get a free £140 – made up of £110 cash and a £30 voucher for either Uber Eats or The Dining Out. Though do note with this account that there's a relatively high minimum monthly pay in of £1,750/mth – equivalent to a salary of £25,600/year.

Once the account's open, you can access a linked 1% regular saver where you can save up to £250/mth.

How HSBC rates on service

40% GREAT
27% OK
33% POOR
DATE: JULY 2021. VOTERS: 472

To get bonus: Apply online and switch, including at least two direct debits or standing orders, within 30 days. You'll also have to meet the minimum £1,750 monthly pay-in
Minimum monthly pay-in: £1,750 to keep the account open (or £10,500 every six months – equates to a £25,600 annual salary)
In-credit interest: None
Who's eligible for offer: You can't have had an HSBC current account, or opened a current account with sister bank First Direct, since January 2018
When £140 bonus is paid: Within 30 days of switch completing
Does it have full FSCS savings protection? Yes, but it's shared with First Direct

  • What if I can't pay in £1,750/mth?

    Under the account's terms, you need to pay in £1,750/mth, or pay in £10,500 over a six-month period (good if your earnings are irregular, for example). If you can't meet the minimum pay-in, the account will just change to HSBC's regular bank account.

     

    We've had reports that HSBC asks for income levels when you apply, so jemmying the pay-in may not be possible for this account.

Arranged overdraft cost: £25 buffer at 0%, then 39.9% EAR variable
Unarranged overdraft cost: 39.9% EAR variable. Maximum total charges £20/mth

APPLY*

RBS Reward

Free £100 to switch to RBS for new and existing customers, and a further £50 if you use the account for a year. Plus get an additional £36/yr cashback on top

Apply

RBS pays switchers a free £100 on a few of its accounts, but the standout is the RBS Reward which bizarrely charges a £2/mth fee but then pays most people £5/mth, so you're £3/mth up.

To get the monthly cashback you must pay out 2+ direct debits of £2 or more (gives £4/mth) and log in to mobile banking (gives £1/mth).

How RBS rates on service

58% GREAT
21% OK
21% POOR
DATE: JUL 2021. VOTERS: 149

To get the £100 switch bonus: Open the account online and request to switch by 4.59pm on Thursday 18 November. Then put £1,500 into the account and log in to online or mobile banking by 30 December 2021.
To get the additional £50: Make 10+ transactions (including card payments, direct debits) every month from January 2022 until September 2022.
Minimum monthly pay-in: £1,250/mth (equates to £17,000/yr salary)
In-credit interest: None
Who's eligible for offer: New and existing customers switching from a non-RBS, NatWest or Ulster account, as long as they've not had switching cash from any of the three since October 2017
When bonus is paid: The first £100 is paid 28 January 2022, the £50 is paid 16 November 2022
Does it have full FSCS savings protection? Yes

  • Do I need to close my existing account when I switch?

    Yes, to get the switching bonus you'll need to complete a full switch, which includes closing the account you're switching from. If you use the Current Account Switch Service – which you need to do to get the bonus – this is done automatically, and all payments in and out are moved across to the new account.

    You can't get the bonus if switching from other banks in the RBS Group, including NatWest and Ulster Bank.

  • What if I can't pay in £1,250/mth?

    If you can't meet the minimum pay-in, RBS will contact you to say you don't meet the account criteria, and will eventually move your account to a free Select account.

     

    However, if you still want the cashback account you can 'jemmy' the £1,250 pay-in. For example, if you only have £650 coming in you can deposit this, withdraw it as cash or to another bank, pay it back in and BINGO, you've qualified.

  • Is my money protected?

    Yes, RBS has the full £85,000 UK savings safety guarantee.

Arranged overdraft cost: 39.49% EAR variable
Unarranged overdraft cost: 39.49% EAR variable. Maximum total charges £19.40/mth

APPLY

Lloyds current account webpage

Club Lloyds

New. A free £100 to switch to Lloyds Bank – plus decent interest on up to £5,000 and a choice of annual benefits (including six free cinema tickets)

Apply

The Club Lloyds account gives newbies who switch to it £100 and also lets you pick one of these four perks for the year:

  • 12 digital movie rentals (that would normally cost you around £55)
  • OR six cinema tickets (that'd cost £30-£65, depending on location)
  • OR a magazine subscription (that'd cost £35-45)
  • OR a Gourmet Society membership (that'd cost around £40)

The account's good for savers as it pays decent interest on up to £5,000: 0.6% on £1 to £4,000 and 1.5% on the bit between £4,000 and £5,000. Keep £5,000 in the account for a year and you'd earn an effective rate of 0.76% – beating top easy-access savings rates. Plus there's a 1% regular savings account where you can save up to £400 per month.

How Lloyds rates on
service

58% GREAT
27% OK
16% POOR
DATE: JULY 2021. VOTERS: 517

To get bonus: Open a new Club Lloyds account and request a switch before 19 October
Minimum monthly pay-in: £1,500/month (£3/mth account fee if you pay in less)

In-credit interest: 0.6% AER variable on £1 to £3,999.99, 1.5% AER variable on £4,000 to £5,000 – though you must pay out 2+ direct debits per month to get the interest

Who's eligible for offer: You can't have had a Lloyds current account switch bonus since April 2019
When £100 bonus is paid: Within three working days of switch completing
Does it have full FSCS savings protection? Yes

Arranged overdraft cost: 0% for the first three months, then 27.5% EAR variable
Unarranged overdraft cost: 0% EAR variable

APPLY

Virgin Money's M Plus Account webpage

Virgin Money M Plus*

Get a Virgin Experience Day gift card ('worth £150') when you switch, plus 2.02% interest on up to £1,000 and a top overseas debit card

Apply*

The Virgin Money* current account gives newbies who switch to it a £150 gift card to put towards Virgin Experience Days (including driving supercars to quad bikes, sushi-making classes to hot-air balloon tours).

The account's good for savers as it pays 2.02% AER variable on the first £1,000 in your account (there's no minimum pay-in required to get this). It also comes with a linked easy-access savings account paying 0.35% AER variable, though there are better rates.

You also get fee-free spending and cash withdrawals overseas – an added boon if you normally travel a lot.

Note that if you apply via the Virgin Red website or app, you can get 15,000 Virgin points for switching instead of the gift card – see FAQs for more on this.

To get bonus: Apply for the account online, then within 45 days – complete a switch (including at least two direct debits), download and register for the mobile banking app, and add £1,000 to the linked savings account (and keep it there until you're sent your Virgin Experience Day gift card).
Minimum monthly pay-in: None

In-credit interest: 2.02% AER variable on up to £1,000
Who's eligible for offer: You can't have had a Virgin Money current account switch bonus, or a current account with Virgin, Clydesdale or Yorkshire banks since March 2021
When bonus is paid: An email's sent within 14 days of fulfilling the criteria above with your experience day gift card code and details of how to use it to book an experience
Does it have full FSCS savings protection? Yes, but it's shared with Clydesdale Bank and Yorkshire Bank

  • How do I get the experience day gift card?

    First, open a Virgin Money current account by applying online, then, within 45 days:
     

    • Complete a full current account switch including two or more direct debits.
    • Deposit at least £1,000 into the linked easy-access savings account.
    • Download and register for the Virgin Money mobile banking app.

    You'll then get a gift card number and PIN by email within 14 days of meeting this criteria. You can use the code on the Virgin Experience Day website and redeem it for an experience day (or put it towards the cost of a more expensive experience). You have until 1 July 2022 to choose your experience – and then usually a further nine months or so to book it with the provider.

     

    If you haven't used the entire £150 balance on an experience, you'll have some money left over on the gift card that you'll be able to put towards another experience.

     

    Important. You'll need to keep at least £1,000 in the linked savings account until you get your code.

  • What can I spend the gift card on?

    You can spend your gift card on a wide range of experiences including:

     

    • Driving track days
    • Afternoon tea
    • Arts and crafts (incl pottery, blacksmithing, jewellery making)
    • Spa days
    • Sports (incl stadium tours, clay pigeon shooting and golf lessons)
    • Flying (incl hot air balloon tours, and flying lessons)

    See the full range of experiences at Virgin Experience Days.

     

    When spending the gift card, be sure to compare prices to how much you'd pay going direct to the provider. Just because you're getting £150 off doesn't mean you're getting a good deal.

  • How much interest can I earn?

    If you kept at least £1,000 in this account, over a year you'd earn £20 in interest before any tax – assuming the variable interest rate doesn't change.

  • How good is the Virgin Red points offer?

    There are various options for spending points which makes it tricky to calculate their true value. However, the offer is most likely to appeal to those keen on other Virgin companies. For example, 15,000 points could get you:
     

    • £82.50 off a Virgin Atlantic Holidays booking
    • One (or more) Virgin Experience Days (including track day, fancy afternoon tea)
    • Various wine cases from Virgin Wines

    For more examples, see Spend Virgin Points.

     

    The offer could also be of interest to frequent flyers looking to build their points stash – 15,000 points is three quarters of the cost of a Virgin Atlantic return flight between London and New York City (JFK Airport), which costs 20,000 points (plus around £264 in taxes, fees and charges).

     

    How to get the points

     

    First, if you haven't already, you'll need to sign up to Virgin Red. Find the offer in the 'Earn points' section of the website/app and follow the link to apply for the Virgin current account online.

     

    Once your account's open, you'll need to do the following within 31 days:

     

    • Complete a full current account switch including two or more direct debits.
    • Deposit at least £1,000 into the linked easy-access savings account.
    • Download and register for the Virgin Money mobile banking app.

    A code for the points will then be sent to you by email within 14 days of meeting this criteria.

     

    Important. If you apply for the account via Virgin Red, you won't get the gift voucher too – just the points.

Arranged overdraft cost: 19.9%, 29.9% or 39.9% EAR variable, depending on your "financial circumstances"
Unarranged overdraft cost: 19.9%, 29.9% or 39.9% EAR variable. £4 unpaid transaction fee. Unarranged overdraft charges are capped at £40/month

APPLY*

Top bank accounts that give ongoing cashback

Some accounts give free cash as a percentage of what you pay out in bills, or offer cashback for paying direct debits or logging in to online banking. However, many come with with a fee, so check the cashback you get is more than the fee before going for one of these accounts.

Santander 123 Lite current account webpage

Santander 123 Lite*

Get ongoing 1-3% cashback on household bills for £2/mth fee, plus £130 if you switch your current account to Santander

Apply*

In addition to the £130 bonus for switchers, the Santander 123 Lite* gives tiered cashback on certain household bills for a £2 monthly fee. Provided you pay by direct direct, you get:

  • 3% back on water bills
  • 2% back on gas and electricity bills, and Santander home insurance and life protection
  • 1% back on council tax, mobile, home phone, broadband, paid-for TV bills and Santander mortgages

Cashback is capped to £5/month in each tier (so a max £15/month). Those with mid-to-large bills can make around £40-£80/year after the fee – you can use the calculator on Santander's site to check how much you could earn. To get the cashback, you need to pay in £500+/month (its way of saying your salary must go in) and use digital banking.

You don't need to switch to get the cashback, but if you do you can get a £130 bonus.

How Santander rates on service

61% GREAT
26% OK
13% POOR
DATE: JULY 2021. VOTERS: 660

Minimum monthly pay-in: £500 (equates to a £6,000 annual salary)
In-credit interest: None
Does it have full FSCS savings protection? Yes, but it's shared with Cahoot

  • What should I watch out for with the cashback?

    You only get cashback on direct debit payments made directly to 'qualifying suppliers'. While this includes all the biggest firms we sampled, it's worth checking your council and utility providers are covered before getting the account.

     

    You won't get cashback on any bills paid by recurring card payment (eg, Netflix, Amazon Prime Video, some Sim-only plans from providers such as Voxi), or on your TV licence payments.

    If your water bill is included within your council tax bill, you'll only get 1% cashback on the lot (Santander says this is because it's not possible to identify what portion of the payment relates to water).

  • Is the main Santander 123 account worth it?

    The main Santander 123 account comes with the same cashback on bills, plus 0.3% AER variable interest on up to £20,000 – for a higher £4/mth fee.

    But given that normal easy-access savings pay 0.4% with no fees, and you can get the same cashback from the cheaper 123 Lite account, the main 123 account won't be worth it for most.

Arranged overdraft cost: 0% for four months (only if you switch to this account). Then 39.94% EAR variable
Unarranged overdraft cost: 0% EAR variable

APPLY*

Other accounts that offer cashback

There are a few other accounts that offer monthly cash payments in return for your custom. We wouldn't suggest you specifically switch to them over the other accounts in this guide, but if you want some extra rewards you could consider them:

  • The Halifax Reward account gives a choice of perks, one of which is £5/month cash paid into your account. To get this, you'll need to pay in £1,500+/mth (there's a £3/mth fee if you don't), stay in credit and either spend at least £500/mth on your debit card OR keep at least £5,000 in your account each day of the month (you won't get any interest on this). You need to pick which of these criteria you'll meet – either debit card spend or minimum account balance – ahead of time, and can't change this until the following year.
  • Open a Barclays Bank Account and you can add its Blue Rewards scheme which, for a £4 monthly fee, will pay you at least £7/mth back – as long as you pay in £800+ and pay out at least two direct debits each month. You can get even more if you have a mortgage, loan, home or life insurance with Barclays.

  • The NatWest Reward and RBS Reward accounts pay up to £5/mth cashback, for a £2 monthly fee. You get £1/mth back for logging in on mobile and £4/mth back paying out two or more direct debits of £2+ each. You need to pay in £1,250 a month or more to keep the account. Plus get £100 if you switch your current account to RBS (and a further £50 if you keep it for a year).

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe

Top bank accounts that pay savings interest

Sadly, these aren't as attractive as they used to be given how low interest rates are in the market generally, with providers cutting rates almost across the board. We've picked a couple of accounts out here that pay decent rates on £2,000 or less. Neither requires you to switch to get the interest (though one does require a minimum pay-in each month).

If you have £2,000 to £5,000 to save, there are options in the table below that'll get you more interest a year than Nationwide and Virgin Money pay, though overall they pay a lower rate.

Nationwide FlexDirect current account webpage

Nationwide FlexDirect

2% interest on £1,500 fixed for the first year, 0.25% afterwards, plus up to £125 in free cash for switching

Apply

Open a Nationwide FlexDirect account and you'll get an interest rate of 2% AER fixed for a year on up to £1,500 (so max interest of £29.70). The rate drops to 0.25% after a year, so look elsewhere then to see if it can be beaten.

You don't need to switch to get the interest, but if you do you can get up to £125.

How Nationwide rates on
service    

67% GREAT
13% OK
19% POOR
DATE: JULY 2021. VOTERS: 848

Minimum monthly pay-in: £1,000/month to get interest (equates to £12,400/year salary)
In-credit interest: 2% AER fixed in year one (on up to £1,500), 0.25% AER variable after (on up to £1,500)
Who's eligible for the interest: Anyone who hasn't had a FlexDirect account before
Arranged overdraft cost: 0% for newbies in year one; 39.9% EAR variable after (limit depends on credit score) 
Does it have full FSCS savings protection? Yes

  • What if I can't pay in £1,000 each month?

    You just won't be paid any interest that month.

  • How much will the overdraft cost?

    For the first year, your overdraft will cost nothing as long as you stay within your limit and you haven't had a FlexDirect account before. After that, you pay 39.9% EAR variable. So if you had a limit of £1,500 and owed £1,000, you'd pay £28.91 a month for your overdraft.

     

    There are no additional charges for the overdraft, not even if you go over your overdraft limit, though Nationwide says it'll try to stop transactions that take you over the limit.

     

    If you're switching to this account with an existing overdraft, you could use the 12 months when your overdraft is at 0% to get your finances in order and avoid future fees. For tips, see Cut overdraft charges.

  • Can I have two accounts? And two overdrafts?

    You can have two accounts, and can even get two lots of interest – though one of your accounts must be joint. Nationwide says you may be able to get two overdrafts if you have two FlexDirect accounts, but each would be assessed on its merits, so there's no guarantee.

Arranged overdraft cost: Year one: 0%. Years two+: 39.9% EAR variable
Unarranged overdraft cost: N/A (Nationwide will try not to let you go over your overdraft limit)

APPLY

Virgin Money's M Plus Account webpage

Virgin Money*

Get 2.02% interest on up to £1,000 with no minimum pay-in, plus a £150 experience day gift card for switching

Apply*

The Virgin Money* current account pays 2.02% AER variable on the first £1,000 in your account (there's no minimum pay-in required to get this) and comes with a linked easy-access savings account paying 0.35% AER variable.

It also gives fee-free spending and cash withdrawals overseas – an added boon if you normally travel a lot.

You don't need to switch to Virgin to get the interest and travel perks, but if you do Virgin Money's currently offering newbies a £150 experience day gift card.

Minimum monthly pay-in: None
In-credit interest: 2.02% AER variable on up to £1,000
How to open/access: Open online or over the phone (16/17-year-olds can open in some branches) – note that only online applications are eligible for the switch offer
Interest paid: Monthly
Does it have full FSCS savings protection? Yes, but it's shared with Clydesdale Bank and Yorkshire Bank

  • How much interest can I earn?

    If you kept at least £1,000 in this account, over a year you'd earn £20 in interest before any tax – assuming the variable interest rate doesn't change.

  • How many accounts can I open?

    There's no set limit, though Virgin Money told us you'd need to have a good reason to open further accounts. When pressed, it suggested that opening another account to get more interest wouldn't be considered a good reason, but opening a joint account with your partner as you liked your individual account would be.

     

    You'll only be able to get one wine offer, even if you open and switch two accounts.

Arranged overdraft cost: 19.9%, 29.9% or 39.9% EAR variable, depending on your "financial circumstances"
Unarranged overdraft cost: 19.9%, 29.9% or 39.9% EAR variable. £4 unpaid transaction fee. Unarranged overdraft charges are capped at £40/month

APPLY*

Other interest-paying current accounts

It's not just these accounts that offer decent interest rates. A few others give you varying levels of interest (see below), and the one you pick should depend on how much cash you're likely to be able to keep in your account.

Plus if you switch your current account to Lloyds Bank, you can bag a free £100 on top.

For comparison, the top easy-access savings deal open to all pays 0.65%.

TABLE_CELL_STYLE

 IN-CREDIT INTEREST (AER) MAX
INTEREST /YR (1)		 MIN MONTHLY PAY-IN HOW MANY CAN YOU HAVE?
Club Lloyds 0.6% on up to £3,999.99 and 1.5% on balance between £4,000-£5,000. Plus get £100 to switch £37.98 £1,500 (2) 2 (2nd must be joint)
Bank of Scotland Vantage 0.6% on up to £3,999.99 and 1.5% on balance between £4,000-£5,000
 £37.98 £1,000 (3) 3
(1) Before any tax if you always held at least £5,000. (2) If you don't pay in this much, there's a £3/mth fee. You also need 2+ direct debits going out to get the interest. (3) You need 2+ direct debits going out to get the interest, and must also add the 'Vantage' feature to your account. 

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe

Top accounts if you're overdrawn

Overdrafts are debts, and often very expensive debts at that. However, during the coronavirus crisis, all banks need to help customers who are struggling with overdraft interest. See our Financial products coronavirus guide to find out what help might be available to you.

Don't just tackle the symptoms of your overdraft, though – it's important to try to pay it off. See our full Cut overdraft charges guide for tips on how to do this while also cutting costs.

These accounts could help you reduce what you owe over the long term, though do remember that you're not guaranteed to get an overdraft when you apply. We've included links in these reviews to banks' overdraft eligibility checkers, which should help you find out if it's likely, before you apply.

Nationwide FlexDirect current account webpage

Nationwide FlexDirect

Get up to £125 for switching, plus 12 months' 0% overdraft – a respite to sort your finances

Apply

The Nationwide FlexDirect account offers a year's 0% overdraft, as long as you haven't had a FlexDirect account before. It's important that you see this as a respite to try to clear your overdraft, as you start paying a hefty 39.9% EAR variable interest for it once you've had the account for a year. You can also get up to £125 if you switch to this account, which will help you start paying off the debt.

There's no guaranteed overdraft limit, and what you get is subject to a credit check, so if you're switching to this account you may not be offered one as large as your existing overdraft. But you can use Nationwide's eligibility checker before applying to see whether you might be able to get an overdraft with it.

How Nationwide rates on
service

67% GREAT
13% OK
19% POOR
DATE: JULY 2021. VOTERS: 848

Minimum monthly pay-in: None (£1,000/month to get interest)
In-credit interest: 2% AER fixed in year one (on up to £1,500), 0.25% AER variable after (on up to £1,500)
Arranged overdraft cost: 0% for newbies in year one; 39.9% EAR variable after (limit depends on credit score)
Does it have full FSCS savings protection? Yes

  • How much will the overdraft cost?

    For the first year, your overdraft will cost nothing as long as you stay within your limit and you haven't had a FlexDirect account before. After that, you pay 39.9% EAR variable. So if you had a limit of £1,500 and owed £1,000, you'd pay £28.91 a month for your overdraft.

     

    There are no additional charges for the overdraft, not even if you go above your overdraft limit, though Nationwide says it'll try to stop transactions that take you over the limit.

     

    If you're switching to this account with an existing overdraft, you could use the 12 months when your overdraft is at 0% to get your finances in order and avoid future fees. For tips, see Cut overdraft charges.

  • How do I get the interest?

    To get interest you need to pay in £1,000/month, though you only get interest when you're in credit.

     

    If you don't pay in the £1,000 in any month, you won't get any interest paid to you for that month.

  • Can I have two accounts? And two overdrafts?

    You can definitely have two accounts, and can even get two lots of interest – though one of your accounts must be joint. Nationwide says you may be able to get two overdrafts if you have two FlexDirect accounts, but each would be assessed on its merits, so there's no guarantee.

Arranged overdraft cost: Year one: 0%. Years two+: 39.9% EAR variable
Unarranged overdraft cost: N/A (Nationwide will try not to let you go over your overdraft limit)

APPLY

First Direct's 1st Account webpage

First Direct*

£250 0% overdraft and GREAT service

Apply*

If you just dip in and out of your overdraft, the First Direct* account should cover you for free, as it offers many a £250 0% overdraft – though it's not guaranteed. Above that you'll pay 39.9% EAR variable. Try First Direct's eligibility checker before applying to see if it might give you an overdraft.

First Direct is also a cracking account for service...

How First Direct rates on
service

85% GREAT
7% OK
7% POOR
DATE: JULY 2021. VOTERS: 1116

Minimum monthly pay-in: None

In-credit interest: None

Arranged overdraft cost: 0% on the first £250; 39.9% EAR variable after 
Does it have full FSCS savings protection? Shared with HSBC

Arranged overdraft cost: 0% under £250, 39.9% EAR variable above that
Unarranged overdraft cost: 39.9% EAR variable (max £20/month)

APPLY*

Starling Bank account webpage

Starling Bank*

Easy-to-control overdraft with a lowish rate, plus no extra charges if you bust your limit

Apply*

While it doesn't offer a 0% overdraft, app-based Starling Bank* has one of the lowest standard overdraft costs of 15% EAR interest (though if your credit history's poor, you could be charged 25% or 35% EAR). If you qualify for one of the lower rates, this is still a good deal, especially compared with other overdraft rates which tend to be bunched at 40%.

It's also easy to control your overdraft limit in the app, and Starling will send you real-time notifications when you use your debit card and when you're about to go into, or are using, your overdraft.

Use Starling's eligibility checker before applying to see whether you are likely to qualify for an overdraft with it – though it only asks a few basic questions, so see the result as an indication only, rather than a sure thing.

How Starling Bank rates on
service

97% GREAT
2% OK
1% POOR
DATE: JULY 2021. VOTERS: 323

Minimum monthly pay-in: None
In-credit interest: 0.05% AER variable on up to £85,000
Does it have full FSCS savings protection? Yes

  • What else can the app do?

    As well as providing spending notifications and insights, the app offers various budgeting features to help you manage your money. It also lets you split bills with others, round up transactions for savings and deposit cheques. For more on app-based bank accounts, see our Digital Banking guide.

  • What exchange rate will I get overseas?

    The debit card is a Mastercard, so you'll get the Mastercard rate, which you can check here. There are no fees for using your card abroad, making it a top pick for overseas use.

  • Will Starling credit-check me?

    If you apply for an overdraft, Starling will run a full credit check on you. If you apply for the account without an overdraft, it'll just run an ID check on you, which won't appear to lenders on your credit report (though you'll be able to see it).

     

    However, once you've opened the account, whether with or without an overdraft, it will appear on your credit report as an active account – and other lenders will be able to see it.

Arranged overdraft cost: 15%, 25% or 35% EAR variable. The rate you get depends on your credit history
Unarranged overdraft cost: None

APPLY*

Top bank account for insurance

Below is our top-pick packaged bank account which, for a monthly fee, offers various insurance perks. Always check if it's cheaper to buy the insurance elsewhere before applying, and for more options see Packaged bank accounts.

Nationwide FlexPlus current account webpage

Nationwide FlexPlus (£13/mth or £156/yr)

£500+/yr of travel, mobile & breakdown cover for £156/yr – but you can offset some of this with up to £125 in free cash if you switch to it

Apply

Nationwide's FlexPlus account is a strong deal – especially for families. It has the lowest fee of our top-pick packaged accounts at £13/month, and you can get £100 or £125 if you switch to it from a non-Nationwide current account. Cover includes:

  • Smartphone insurance for all the family's phones
  • UK & Europe breakdown cover for the account holder(s)
  • Worldwide family travel insurance, including winter sports, up to your 70th birthday (you can pay an additional £65/year to keep the cover if you're older)
  • The insurance could be worth £500+/yr for a family of four. Read more full insurance info, including the Covid travel cover provided

You can also get up to £125 if you switch your existing current account into the FlexPlus.

How Nationwide rates on
service

67% GREAT
13% OK
19% POOR
DATE: JULY 2021. VOTERS: 848

Monthly fee: £13
Min monthly pay-in: None
In-credit interest: None
Arranged overdraft cost: 39.9% EAR variable
Unarranged overdraft cost: N/A (Nationwide will try not to let you go over your limit)
Does it have full FSCS savings protection? Yes

APPLY

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe

Cashback sites may pay you for signing up

As an extra boon, members of specialist cashback websites can be paid when they sign up to some financial products. Do check that it's exactly the same deal though, as terms can be different. And remember the cashback is never 100% guaranteed until it is in your account.

Full help to take advantage of this and pros and cons are in our Top Cashback Sites guide.

Want to complain about your bank account?

If your bank has charged you the wrong amount, taken the wrong amount in payment or its service has been atrocious, then you don't have to suffer in silence. It's always worth trying to call the bank first to see if it can help, but if not...

Free tool to help you complain

This tool helps you draft and manage your complaint. It's totally free to use, and it's offered by Resolver, a firm we work with to help people get complaints justice.

RESOLVER – FREE COMPLAINTS TOOL*

If the company won't help, Resolver also helps you escalate your complaint to the free Financial Ombudsman Service.

Bank account FAQs

Here are some common bank account related queries. If you've got a question we've not answered below or in the text above, suggest a question in the MSE Forum.

  • What do I do if I've sent money to the wrong account?

    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 note of exactly when the error was made. If you know the mistake you made (for instance, 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 example, 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.

  • How does it work with reward payments and tax?

    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 and Co-op Bank's Everyday Rewards scheme, are paid with basic-rate tax already deducted. Others, including Barclays Blue Rewards, 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.

  • Is there a way to track down old bank accounts?

    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.

  • What's the difference between a direct debit, standing order and recurring payment?

    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.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show more
Show less
FAQs Privacy Past Emails Unsubscribe
FAQs Privacy Past Emails Unsubscribe
Share this guide
MSE Forum

Have your say in our forum!

Best bank accounts

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com

MSE Tools & Calculators

Clever ways to calculate your finances 

Cheap Energy Club

We ensure you're on the cheapest tariff

Tool

Loans Eligibility

All of the top unsecured personal loans

Tool

Credit Card Eligibility

Tools for different credit card types & purchases

Tool

Mortgage best buys

Compares thousands of mortgages

Tool

Mortgage Calculator

Eight calcs for all your mortgage sums

Tool

Free complaints tool

Resolver - the automated complaints system

Tool
Tools and Calculators

What the * means above
If a link has an * by it, that means it is an affiliated link and therefore it helps MoneySavingExpert stay free to use, as it is tracked to us. If you go through it, it can sometimes result in a payment or benefit to the site. It's worth noting this means the third party used may be named on any credit agreements.

You shouldn’t notice any difference and the link will never negatively impact the product. Plus the editorial line (the things we write) is NEVER impacted by these links. We aim to look at all available products. If it isn't possible to get an affiliate link for the top deal, it is still included in exactly the same way, just with a non-paying link. For more details, read How this site is financed.

Duplicate links of the * links above for the sake of transparency, but this version doesn't help MoneySavingExpert.com: 

First Direct, HSBC Advance, Santander 123 Lite, Starling, Virgin Money

MoneySupermarket.com Financial Group Limited is authorised and regulated by the Financial Conduct Authority (FRN: 303190). The registered office address of both MoneySupermarket.com Group PLC and MoneySupermarket.com Financial Group Limited (registered in England No. 3157344) is MoneySupermarket House, St. David's Park, Ewloe, Chester, CH5 3UZ. MoneySavingExpert.com Limited is an appointed representative of MoneySupermarket.com Financial Group Limited.