1. MoneySavingExpert.com
  2. Banking
Skip to content of guide

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!

FAQs Privacy Past Emails Unsubscribe

Best current accounts

Get up to £200 to switch, up to 7% interest or up to 1% cashback

Gavin Shepherd
Gavin Shepherd and Chris Collier
Updated 2 October 2024

Switching to a new current account is quick, easy and can earn you £175 in free cash. Yet you can get plenty of perks without switching bank account, including 1% cashback on spending or bills and decent savings interest. This guide explains it all and helps you compare the top-pick accounts.

Skip to content of guide

In this guide

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

What is a current account?

A current account is a type of bank account which keeps your money secure and helps you manage your finances. It gives you an easy way to make payments to others (for example, standing orders and Direct Debits) and have people pay you (for example, your employer). You'll also get a debit card, which allows you to make payments and withdraw cash from a cash machine.

While you may use other money products, such as credit cards and 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 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).

How do I open a current account?

Opening a current account is an easy process which usually plays out in the following way:

  • You complete an application form. This can be done most simply online, though many banks do allow you to open an account in person or over the phone if you prefer. It'll ask you a number of questions regarding your personal and financial circumstances, and usually takes around 10 minutes to complete. Sometimes there could be extra steps – such as supplying ID or payslips – although this is rare.

  • You agree to the bank credit-checking you. This is regardless of whether or not you request an overdraft – most banks use information from 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 facilitate money laundering, and establishing a customer's true identity helps them to do that.

For full information on setting up an account, head to our How to open a bank account guide.

Compare account perks to find the one that works for you

When considering which bank account to go for, think about features you want your account to offer. Some accounts will pay interest on your balance, some will offer cashback, and still others will offer insurance or 0% overdrafts. Decide which of these is most important to you.

Also worth weighing up is how you open and manage the account. Do you want a bank account you can open and operate entirely online? Or are you more keen on being able to head into a branch to sort things out? If the latter, you'll need to steer clear of the app-only banks.

Check the account's eligibility criteria before applying, too. Certain accounts come with fees, or require you to pay in a certain amount each month to qualify for the features they offer. Others may need you to have a good credit score, so do check the small print before you apply.

MSE weekly email

FREE weekly MoneySaving email

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

FAQs Privacy Past Emails Unsubscribe

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

    Current Account Switch Guarantee.

    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 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 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 Building Society
    • 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.

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

      Yes, you do have to close an old 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 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 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.

  • 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 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:

    Top bank accounts ranked by minimum pay-in

    Account Min monthly pay-in Equivalent salary/year needed (1) What if I don't pay in this much?
    Virgin Money current account None N/A N/A
    HSBC Advance None N/A N/A
    First Direct 1st Account None (2) N/A N/A
    Nationwide FlexPlus None N/A N/A
    Santander Edge £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
    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
    Halifax Reward £1,500 £21,200 £3/month fee and no reward that month
    Club Lloyds £2,000 £30,200 £3/month fee

    (1) This is an estimate and will be higher if you have anything taken out of your pay like pension or student loan contributions. (2) No monthly min but must pay in £1,000+ once to get switching bonus.

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

    40% overdraft to 0% overdraft.

    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.

  • 6. You can have multiple bank accounts at the same time

    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 online or via an app, whereas others may be branch-based. You may prefer one over another, or even a mix.

    Pros Cons
    Maximise rewards offered by different bank accounts, for example, cashback and linked savers. Applying for multiple bank accounts in a short period of time can damage your credit score.
    Easier to budget for different things. Multiple overdrafts can be viewed negatively by lenders.
    Simpler to keep savings separate from everyday spending. Harder to keep track of things like direct debits and standing orders.
    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 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!

Top current accounts that give bonuses for switching

Banks sometimes offer bonuses – free cash, boosted savings rates or other perks – to new customers who switch in an existing current account to a new current account with them. Essentially, banks want your custom and switch bribes are a double win for banks – you not only join them, but you leave one of their rivals. 

  • You must use the official Current Account Switch Service

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

    The service automatically moves 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 bank

    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.

  • Beware of using charities to meet Direct Debit requirements

    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 straight away, 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.

Top bank accounts for new switchers


 

Club Lloyds

Service rating: 54% 'great'

 

Account info:
- Minimum pay-in: £2,000/month (£3/month fee otherwise)

- Overdraft: 39.9% EAR variable (0% up to £50)

 

 

 

 

 
New. FREE £200, plus choose a reward: 12 months' Disney+ (with ads), six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine.

As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year. Do note there's a £3/month fee unless you pay in £2,000+ a month. You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest).

 

You can bag the free switch cash with some other accounts too, including the Club Lloyds Silver account, one of our top-pick packaged accounts which gives a range of insurance for £11.50/month.

 

Who can get the bonus?

- You can't have had switch cash from Lloyds, Bank of Scotland or Halifax since April 2020.

 

How to get the £200 bonus:
- Open the account online, by phone or in branch.

- Switch in an account from a different bank, including 3+ Direct Debits. The switch must be started by 10 December.

- The £200 is paid within 10 working days of the switch starting.

 

First Direct 1st Account*

Service rating: 91% 'great' 

 

Account info:
- Minimum pay-in: None

- Overdraft: 39.9% EAR variable (0% up to £250)
FREE £175, TOP service, 7% regular saver, fee-free overseas spending and a £250 0% overdraft.

First Direct's been top or near-top of every bank service poll we've ever run – most recently it scored 91% 'great'. Plus, newbies to First Direct's 1st Account* can expect £175 to switch, a £250 0% overdraft (subject to a credit check), a linked regular saver paying 7% fixed for a year and near-perfect rates when spending overseas. Put all this together and it's a top all-round account.

 

Who's eligible for the bonus?
- You can't have ever had ANY account with First Direct (such as a current account, credit card or mortgage).
- You can't have opened a current account with sister bank HSBC since January 2018.

 

How to get the £175 bonus:
- Open the account in-app (or online for joint accounts).
- Switch in an account from a different bank including 2+ Direct Debits or standing orders within 45 days.
- Also pay in £1,000+ and make 5+ debit card payments within 45 days.
- The £175 is paid by the 20th of the following month after you meet the switch bonus criteria. 

 

Nationwide FlexDirect

Service rating:
87% 'great'

 

Account info:

- Minimum pay-in: None

- Overdraft: 39.9% EAR variable
New. FREE £175, 5% interest on up to £1,500 plus 1% cashback for 12 months.

Nationwide is offering a host of perks to newbies switching to its FlexDirect account. On top of the £175 free cash, there's 5% AER interest on current account balances up to £1,500 for a year (maxed out that's £75) and 1% cashback for 12 months up to £5/month.

 

You can also get the free £175 by switching into Nationwide's £13/month FlexPlus packaged account or its bog-standard FlexAccount – though the 5% interest and 1% cashback aren't available with these accounts.

 

Who's eligible for the bonus?

- You can't have switched into a Nationwide account, or have received switch cash from Nationwide, since 18 Aug 2021.

 

How to get the £175 bonus:

- Open the account online or via app (you can also switch into an existing FlexDirect account, though you won't get the 5% interest or 1% cashback perks).

- Switch in an account from a different bank including 2+ Direct Debits within 28 days.

- Within 31 days of requesting the switch, pay in £1,000+ and make at least one payment using the debit card.

- The £175 is paid within 10 days of meeting all the criteria.

 

Co-op Bank Current Account

Service rating:

61% 'great'

 

Account info:

- Minimum pay-in: None

- Overdraft: 35.9% EAR variable
New. FREE £75 to switch, plus £25 a month for three months. 

You can get up to £150 with the Co-op Bank if you switch and stay for three months – an initial £75 switch bonus, plus £25 a month for three months. Though you'll need to jump some hoops to get it all.

 

You've a choice of a few accounts: our top picks are the bog-standard, fee-free Current Account or the Everyday Extra – a packaged account offering a range of insurance perks for a £15/month fee. The offer is open to both new and existing customers.

 

Who's eligible for the bonus?

- You can't have had switch cash from Co-op Bank since 1 Nov 22.

 

How to get the £75 switch bonus:

- Open a new account and request to switch in an account from a different bank within two weeks (or switch into an existing account).

- Complete a full switch within eight weeks.

- Within 30 days of the switch completing: deposit £1,000+, have 2+ Direct Debits, register for digital banking, add the debit card to a digital wallet (for example, Apple/Google Pay) and make 10+ transactions using the debit card (including via digital wallets).

- The £75 will be paid within 7 days of meeting all the above criteria.

 

How to get the £25/month for three months:

- Qualify for the £75 bonus above.

- Month one begins the day after you receive the bonus – for example, get the £75 on 14 Oct and month one is 15 Oct to 14 Nov.

- You'll get £25 in each month that you: deposit £1,000+, make 10+ transactions using the debit card (including via digital wallets) and, on the last day of the month, have 2+ active Direct Debits.

- You can fail to qualify for any of the three months' bonuses, but still qualify for any of the others. So if you didn't qualify in month one, you can still qualify in months two and three.

- Each £25 is paid within 7 days of the end of your monthly period.

All have Financial Services Compensation Scheme savings protection of up to £85,000. See top banks for customer service for more on our service ratings.

Top bank accounts for longer-term rewards

Reward accounts – aka cashback bank accounts – often pay you free cash for using them as your main bank account. The cashback may be a percentage of what you spend on bills, and to earn it, you often need to make a certain number of purchases, pay out Direct Debits or use digital banking.

However, many reward current accounts come with a monthly fee, so it's important to work out whether the cashback you'll likely earn will outweigh this. You also may need to deposit a certain amount into the account each month. It's important to consider all of the requirements, rewards and other perks (such as an overdraft) before committing to one.

Below are some of the best reward current accounts out there.

Top bank accounts for cashback

Santander.

 

Santander Edge*

Service rating: 60% 'great'

 

Account info:

- Minimum pay-in: £500/month

- Monthly fee: £3

- Overdraft: 39.94% EAR variable
Get 1% cashback on bills and supermarket/travel spend (£3/month fee) and no fees to spend/withdraw cash abroad, plus £36 cashback.

With Santander Edge you get 1% back on water, energy, council tax, mobile, broadband, phone and paid-for TV bills, as well as 1% on most supermarket and travel spending. You can earn up to £10/month for each – so £20/month max.

 

You also get a linked 6% easy-access saver (max £4,000, can't be opened jointly), plus the debit card is fee-free for overseas spending and ATM withdrawals. To get the interest and cashback, you must pay in £500+/month and have 2+ Direct Debits. 

 

The account costs £3/month, but open it and pay in £500+ before 7 Oct and you'll get £36 cashback (paid within 60 days) – the equivalent of a year's fees. To get the cashback, you can't have an existing Santander current account or have had one on 8 Sep, nor have ever received an incentive payment (such as a switch bonus) to open an Edge account before. 

 

Got high bills and/or high supermarket/travel spend? The Santander Edge Up could be worth a look. It gives up to £15/month back in both categories, though there's a higher £5/month fee and you can't open the 6% saver with this account.

Chase.

 

Chase current account*

Service rating: 95% 'great'

Account info:

- Minimum pay-in: None

- Overdraft: None
Get an ongoing 1% cashback, no fees to spend/withdraw cash abroad, plus 3.85% interest.

Newbies to Chase* get 1% cashback (max £15/month) on almost all spending (though there are some exclusions) for their first 12 months. After that, you'll need to deposit £1,500+ a month to keep getting the 1% cashback, though there are workarounds if that's difficult for you.

 

Chase also gives you the same near-perfect rate it gets on spending in any country, so use the debit card to pay overseas and you get the 1% cashback there too.

Plus, it has a decent 3.85% AER interest on its linked easy-access saver, though this can be beaten. There's also a 'round-up' account paying 5% interest (so spend £1.45, and 55p is saved into the 5% account).
 

To use Chase, you'll need a device with at least iOS 14.1 or Android 8.1 operating systems.
Next best accounts that offer cashback

New. Nationwide FlexDirect

Service rating: 87% 'great'

Get 1% cashback for 12 months:

New Nationwide FlexDirect customers will receive 1% cashback on purchases for 12 months. You have to pay in £1,000+ into the account each month and the cashback is capped at £5 a month. 

 

Plus, you can currently get £175 FREE cash if you switch.

Halifax Reward

Service rating: 49% 'great'

 Get £5/month when you:
Pay in £1,500+/month (if you don't, there's a £3/month fee and you won't get the £5) and stay in credit. You also have to either a) spend £500+/month on your debit card OR b) keep a constant £5,000+ in your account each month.

NatWest Reward*

Service rating: 58% 'great'

 

RBS Reward*

Service rating: 57% 'great'

 

Get up to £3/month when you:

Pay in £1,250+, pay out 2+ Direct Debits of £2+ and log in to its mobile banking app each month. You get £5/month back, but there's a £2/month fee.

 

All have Financial Services Compensation Scheme savings protection of up to £85,000. Santander's is shared with Cahoot, Chase's is shared with JPMorgan, and NatWest's is shared with Ulster Bank. See top banks for customer service for more on our service ratings.

Top bank accounts that pay savings interest

You don't have to switch to the accounts below to get the interest. And for comparison, the top easy-access savings deal open to all pays 5.2%. 

Top bank accounts for interest

Kroo.

 

Kroo
Account info:

- Interest: 4.1% AER variable (max £500,000)

- Minimum pay-in: None

- Overdraft: 24.9% EAR variable
Get 4.1% interest from app-based bank Kroo.

Kroo pays a decent rate, but unlike Chase below, it's paid on your current account balance, rather than on a linked savings account.

 

Kroo may be an unfamiliar name, but – like all banks in this guide – it has the full UK savings safety protection, so anything £85,000 or under is protected by the Financial Services Compensation Scheme.

 

Nationwide FlexDirect

Service rating: 87% 'great'

 

Account info:

- Interest: 5% AER fixed (max £1,500)

- Minimum pay-in: None (£1,000+/mth for the 5% interest)

- Overdraft 39.9% EAR variable
New. Get 5% interest fixed for 12 months plus 1% cashback.

Nationwide FlexDirect newbies who pay in £1,000+ each month will get 5% AER interest for a year on up to £1,500 in the current account – maxed out this is £75 in interest.

 

You also get 1% cashback on most spending for 12 months up to £5/month, though again you need to deposit £1,000+ each month.

 

Plus, you can currently get £175 FREE cash if you switch.

Chase.

 

Chase current account*

Service rating: 95% 'great'

Account info:

- Interest: 3.85% AER variable on the linked savings account (max £1m)
- Minimum pay-in: None

- Overdraft: Not available
Earn 3.85% interest, 1% cashback + 5% 'round-up' interest.

Open a Chase current account*, then open the 3.85% savings account from within the app (needs at least iOS 14.1 or Android 8.1). It's a decent rate, though it can be beaten.

 

You also get other rewards. The current account gives a rolling 1% cashback on most debit card spending (max £15/month), with no minimum deposit to qualify for the cashback for the first 12 months. After that, you'll need to pay in £1,500+/month to get it.

 

You also get fee-free spending and withdrawals abroad and 5% interest on small amounts through its 'round-up' feature.

All have Financial Services Compensation Scheme savings protection of up to £85,000. See top banks for customer service for more on our service ratings.

MSE weekly email

FREE weekly MoneySaving email

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

FAQs Privacy Past Emails Unsubscribe

Top accounts if you're overdrawn

Overdrafts are debts – and one of the most expensive, even if it's an arranged overdraft. 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 help with this.

These accounts come with an overdraft facility which 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 info on how to find banks' overdraft eligibility checkers (if they have them), which should help you find out if you're likely to be accepted, before you apply.

Top bank accounts with low-cost arranged overdrafts

First Direct.

 

First Direct 1st Account*

Service rating: 91% 'great'

 

Account info:

- Minimum pay-in: None
- Overdraft: 39.9% EAR variable (0% up to £250)
Ongoing £250 interest-free overdraft and TOP service.
First Direct's 1st Account* offers many a £250 0% overdraft, though it's not guaranteed – so use the bank's eligibility checker before applying (follow that link and scroll down to the 'How our overdraft works' dropdown, and the checker's linked from there). Expensive interest kicks in above that, so this account's likely only good if you use your overdraft for limited amounts.

 

 

Plus, you can currently get £175 FREE cash if you switch.

Starling Bank.

 

Starling Bank

Service rating: 95% 'great'

Account info:

- Minimum pay-in: None
- Overdraft: 15%, 25% or 35% EAR variable
No 0% overdraft, but a chance of a lower interest rate.
Starling Bank has tiered overdraft rates, and all tiers are cheaper than most other banks. You can control your overdraft limit in its app, and set up spending notifications if you're about to go into (or are already in) your overdraft. The rate and limit you get are credit score dependent – use its eligibility checker before applying to get an indication. As an added boon when not overdrawn, Starling pays 3.25% interest on balances up to £5,000 in the current account.

All have Financial Services Compensation Scheme savings protection of up to £85,000. First Direct's is shared with HSBC. See top banks for customer service for more on our service ratings.

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.

Top packaged bank account with insurance


Virgin Money.

 

Virgin Money Club M

Service rating: 37% 'great'

 

Account info:
- Monthly fee: £12.50
- Minimum pay-in: None
- Overdraft: 19.9%, 29.9% or 39.9% EAR variable
Get £500+/year of travel, mobile & breakdown cover for £150/year.
The Virgin Money Club M packaged bank account is especially good for families, as you get cover for all family phones and gadgets, plus worldwide family travel insurance (max age 74). You also get UK & European breakdown cover for the account holder(s).

 

See full what the insurance covers info.

Virgin Money has Financial Services Compensation Scheme savings protection of up to £85,000, shared with Clydesdale Bank and Yorkshire Bank. See top banks for customer service for more on our service ratings.

Top banks for customer service

Every six months, we run a poll asking for your opinions on the quality of banks' customer service. We ask for a rating of 'great', 'OK' or 'poor' and tally them up as a rough indicator of how well each bank is performing.

Below are the results of our most recent poll, in July 2024, ranked by highest percentage of 'great' responses. We've added links for any banks we feature in our various banking guides – so it's easy to find our full reviews – and have separated the top three for easy viewing.

Top bank accounts ranked by customer service

Bank or building society Percentage 'great' Percentage 'OK' Percentage 'poor' Total responses
Chase 95% 3% 2% 350
Starling 95% 3% 2% 172
First Direct 91% 6% 3% 1,043
Nationwide 87% 9% 4% 1,176
Monzo 88% 4% 9% 140
Santander 60% 28% 12% 712
Bank of Scotland 60% 28% 12% 90
RBS 57% 33% 10% 94
Co-op 61% 23% 16% 145
NatWest 58% 29% 14% 475
Lloyds 54% 31% 16% 441
HSBC 49% 33% 17% 336
Halifax 49% 31% 20% 295
TSB 47% 30% 23% 104
Virgin Money 37% 33% 31% 117
Barclays 38% 28% 35% 440

These service ratings are from our July 2024 poll of 6,200 people. Percentages are rounded to the nearest whole number. Only banks with at least 75 responses have been included. See the full poll results for more detailed info.

Need a bank account for a child or student?

They say to respect your elders, but banks certainly pull out the stops to appeal to younger generations too...

Children's bank accounts

Children's bank accounts are generally aimed at those between 11 and 17. They are usually just like 'grown up' accounts, but without the overdraft facility or credit check. Some also ban kids from spending at places such as gambling sites and off licences. For full info, see our Children's bank accounts guide, which also includes info on prepaid cards for kids, in case that's a better option for your child.

Student bank accounts

Student bank accounts are different from the accounts above as they tend to offer larger 0% overdrafts while you're studying. For the top accounts, see our dedicated Student bank 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!

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's 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, you can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it 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 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.

  • 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, 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.

  • 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.

  • What does cashback involve?

    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.

  • How do bank switch bonuses work?

    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).

MSE weekly email

FREE weekly MoneySaving email

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

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 

Credit Card Eligibility

See which cards are likely to accept you

Tool

Loans Eligibility

See which loans you've the best chance of getting

Tool

MSE App

Get MSE on your Apple or Android phone

Tool

Broadband Unbundled

Compare broadband deals & save

Tool

Mortgage best buys

Compares thousands of mortgages

Tool

Mortgage Calculator

Eight calcs for all your mortgage sums

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: 

Barclays, Chase, First Direct, Nationwide, NatWest, RBS, Santander

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