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Best Bank Accounts
Get £125 to switch, up to 3% back on bills or up to 2% interest
If you're looking to get paid for your banking custom, you can now earn £100+ for switching to HSBC or First Direct, while other accounts offer wine, cashback on bills or savings interest. So if you're unhappy with your bank and want to give it the boot, this guide explains it all and helps you compare the top-pick 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

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:
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Top bank accounts with freebies for switching
The coronavirus crisis saw banks concentrate on helping existing customers, meaning they weren't offering switch incentives to new customers. However, three banks now offer a switching perk. Read carefully, as you need to meet certain conditions to get the bonuses.
Newbies switching to HSBC's Advance account can get a free £125. To get it, you must open an account and start a switch within 30 days (incl moving 2+ direct debits/standing orders across) and pay in £1,750+/mth. It'll then take up to 20 days from the time your switch completes for the cash to be paid in to your account.
Once your account's open, you can also get a linked 1% regular savings account where you can save up to £250 each month.
How HSBC rates on service
42% GREAT
33% OK
25% POOR
DATE: FEB 2021. VOTERS: 318
To get bonus: Apply and start a switch within 30 days, including at least two direct debits or standing orders
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: Anyone who's not had an HSBC current account (or opened a First Direct current account – they're part of the same group) since 1 Jan 2018 and meets switching criteria
When bonus is paid: Within 20 days of switch completing
Does it have full FSCS savings protection? Yes, but it's shared with First Direct
Arranged overdraft cost: £25 buffer at 0%, then 39.9% EAR variable
Unarranged overdraft cost: 39.9% EAR variable. Maximum total charges £20/mth
First Direct* offers newbies switching to it a free £100. To get it, you'll need to open the account, switch and pay in £1,000+ within three months. The bonus will then be paid within 28 days of meeting the criteria.
Once the account's open, you'll get access to a linked 1% regular saver where you can save up to £250 each month. Plus, First Direct's cracking for service, with 91% ranking it 'great' in our last poll.
How First Direct rates on
service
91% GREAT
6% OK
3% POOR
DATE: FEB 2021. VOTERS: 650
To get bonus: Apply, switch and pay in £1,000+ within three months
Minimum monthly pay-in: None
In-credit interest: None
Who's eligible for offer: Anyone who's not had any account with First Direct before (or opened an HSBC current account since 1 Jan 2018 – they're part of the same group) and meets switching criteria
When bonus is paid: Within 28 days of meeting criteria
Does it have full FSCS savings protection? Yes, but it's shared with HSBC
Arranged overdraft cost: 0% under £250, 39.9% EAR variable above that
Unarranged overdraft cost: 39.9% EAR variable (max £20/mth)
The Halifax Reward account offers £100 if you open an account and start a switch by 4 May 2021. It's fee-free if you pay in £1,500+/mth but charges a £3/mth fee if you don't. As well as the switching bonus, you can also choose one of the following rewards each year:
- £5/mth cash
- Three monthly digital magazine subscriptions (eg, Cosmo, Esquire)
- Two Rakuten online movie rentals a month
- One Vue cinema ticket and a voucher for half-price popcorn a month
However, to get your monthly reward, you need to pay in your £1,500/mth and stay in credit AND either:
- Spend £500/mth on your debit card, OR
- Keep a balance of £5,000+ in the account (it doesn't earn interest).
You need to specify in advance which of these conditions you'll meet, and can only change it once a year.
How Halifax rates on service
60% GREAT
27% OK
13% POOR
DATE: FEB 2021. VOTERS: 239
To get bonus: Open account & start a switch by Tue 4 May
Minimum monthly pay-in: £1,500/mth, equates to a £21,200 annual salary (£3/mth fee if not met)
In-credit interest: None
Who's eligible for offer: Anyone who hasn't had a switching bonus from Halifax since April 2020. Existing customers need to open and switch into a new, separate Reward account to qualify (you WON'T be eligible if you just upgrade your existing account or if you already have a Reward account)
When bonus is paid: Within three days of the switch completing
Savings protection: Shared with Bank of Scotland and BM Savings
Arranged overdraft cost: 39.9% EAR variable, though some may get a rate of 49.9% EAR variable
Unarranged overdraft cost: 0% EAR variable
Get 12 free bottles from Virgin Wines (valued at £138) + £50 for charity when you switch, plus 2.02% interest on up to £1,000
The Virgin Money current account gives newbies who switch to it a free 12-bottle case of wine from Virgin Wines (please be Drinkaware – non-alcoholic wines are also available). Plus, Virgin will donate £50 on your behalf to any charity you choose from the 13,000 or so on the Virgin Giving website. However, there are a few hoops to jump through to get the perks – see key info below.
Alternatively, if you apply via the Virgin Red website or app, you can get 15,000 Virgin points for switching instead of the wine and charity donation – see FAQs for more on this.
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 0.5% AER variable, though this is dropping to 0.35% from 27 April.
You also get fee-free spending and cash withdrawals overseas – an added boon if you normally travel a lot.
To get bonus: Apply for account online, then within 31 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 get your Virgin Wines code)
Minimum monthly pay-in: None
In-credit interest: 2.02% AER variable on up to £1,000
Who's eligible for offer: New customers switching to Virgin Money
When bonus is paid: You'll get an email with your Virgin Wines code and details of how to redeem the offer within 14 days of fulfilling the criteria above
Does it have full FSCS savings protection? Yes, but it's shared with Clydesdale Bank and Yorkshire Bank
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/mth
Top bank accounts that give ongoing cashback
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, electricity, Santander home insurance and life protection
- 1% back on Santander mortgages, phone, broadband, mobile and TV bills and council tax
Cashback is capped to £5/mth in each tier (so a max £15/mth). Those with mid-to-large bills can make around £40-£80/yr after the fee – you can use the calculator on Santander's site to check how much you could earn.
To get cashback, you need to pay in £500+/mth, have two active direct debits, pay your monthly fee and log in to online or mobile banking at least once every three months. Watch out – it counts a month from the anniversary of account opening, not a calendar month.
How Santander rates on service
55% GREAT
31% OK
14% POOR
DATE: FEB 2021. VOTERS: 537
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
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
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 currently gives £100 to switch, plus a choice of perks, one of which is £5/mth 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.
- Sign up to Co-op Bank's Everyday Rewards scheme and you can earn up to £5/mth. You'll get £2 each month you pay in £800+, pay out four or more direct debits, stay opted in for paperless statements, log in to online or mobile banking, and stay within your overdraft limit. If you do all that, you can then earn 5p per debit card transaction, up to a maximum £3/mth.
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Top bank accounts that pay savings interest
Sadly, these aren't as attractive as they used to be given the low interest rate environment, with accounts cutting rates almost across the board. We've picked a few accounts out here that pay decent rates on £2,000 or less. None require you to switch to get the interest (though most require a minimum pay-in each month, or to have direct debits going out).
If you have £2,000 to £5,000 to save, there are options are in the table below that'll get you more interest per year than Virgin Money pays, though overall they pay a lower rate.
Get 2.02% interest on up to £1,000 with no minimum pay-in + free wine for switching
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 0.5% AER variable, though this is dropping to 0.35% from 27 April.
It also gives fee-free spending and cash withdrawals overseas – an added boon if you normally travel a lot.
Plus, newbies switching to Virgin Money can claim a free 12-bottle case of wine from Virgin Wines (please be Drinkaware – non-alcoholic wines are also available). In addition, Virgin will donate £50 to charity on your behalf. Alternatively, you can get 15,000 Virgin points via Virgin Red instead. See FAQs for full details on both offers.
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
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/mth
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). To get the interest, you need to pay in £1,000+/mth. The rate drops to 0.25% after a year, so look elsewhere then to see if it can be beaten.
How Nationwide rates on
service
75% GREAT
17% OK
8% POOR
DATE: FEB 2021. VOTERS: 518
Minimum monthly pay-in: £1,000/mth to get interest (equates to £12,400 annual salary)
In-credit interest: 2% AER fixed on up to £1,500 for 12 months, 0.25% AER variable on up to £1,500 in subsequent years
Who's eligible for offer: 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
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)
For comparison, the top easy-access savings deal open to all pays 0.4%. | ||||
TABLE_CELL_STYLE |
IN-CREDIT INTEREST (AER) | MAX INTEREST /YR (1) |
MIN MONTHLY PAY-IN | HOW MANY CAN YOU HAVE? |
Bank of Scotland Vantage | 0.6% on up to £3,999.99 and 1.5% on balance between £4,000-£5,000 |
£38.90 | £1,000 (2) | 3 |
Club Lloyds | 0.6% on up to £3,999.99 and 1.5% on balance between £4,000-£5,000. |
£38.90 | £1,500 (3) | 2 (2nd must be joint) |
(1) Before any tax if you always held the max balance+. (2) You need 2+ direct debits going out to get the interest, and must also add the 'Vantage' feature to your account. (3) 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. |
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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 for what help might be available to you.
Don't just tackle the symptoms of your overdraft, though – it's important to try and pay it off. See our full Cut overdraft costs guide for tips on how to do this while also cutting costs.
These accounts could help you cut costs 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.
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.
Plus, it currently gives newbies switching to it a free £100. To get it, you'll need to apply, switch and pay in £1,000+ within three months.
First Direct is also a cracking account for service, with 91% ranking it 'great' in our last poll.
How First Direct rates on
service
91% GREAT
6% OK
3% POOR
DATE: FEB 2021. VOTERS: 650
To get bonus: Apply, switch and pay in £1,000+ within three months
Who's eligible for offer: Anyone who's not had any account with First Direct before (or opened an HSBC current account since 1 Jan 2018 – they're part of the same group) and meets switching criteria
When bonus is paid: Within 28 days of meeting criteria
Minimum monthly pay-in: None
In-credit interest: None
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/mth)
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 for it once you've had the account for a year.
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
75% GREAT
17% OK
8% POOR
DATE: FEB 2021. VOTERS: 518
Minimum monthly pay-in: None (£1,000/mth to get interest)
In-credit interest: 2% in year one on up to £1,500, 0.25% on up to £1,500 after
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
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)
Easy-to-control overdraft with a lowish rate, plus no extra charges if you bust your limit
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
93% GREAT
4% OK
3% POOR
DATE: FEB 2021. VOTERS: 110
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
Arranged overdraft cost: 15%, 25% or 35% EAR variable. The rate you get depends on your credit history
Unarranged overdraft cost: None
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.
£500+/yr of travel, mobile & breakdown cover for £156/yr
Nationwide's FlexPlus* account is a cracking deal – IF you use the features. For £13/mth, you get worldwide family travel insurance, including winter sports, up to your 70th birthday, though you can pay a premium of £65/yr to keep this cover if you're older. The travel insurance provides some limited coronavirus-related cover, but it's worth checking the terms carefully before booking as exclusions apply.
You also get family smartphone insurance and UK and Europe breakdown cover for the account holder(s). We've calculated that all the insurance could be worth £500+/yr for a family of four (see FAQs).
This account also gives fee-free spending and cash withdrawals overseas – an added boon if you normally travel a lot.
How Nationwide rates on
service
75% GREAT
17% OK
8% POOR
DATE: FEB 2021. VOTERS: 518
Monthly fee: £13
Min monthly pay-in: None
In-credit interest: None
Does it have full FSCS savings protection? Yes
Arranged overdraft cost: 39.9% EAR variable
Unarranged overdraft cost: N/A (Nationwide will try not to let you go over your overdraft limit)
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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.
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