Best current accounts
Get up to £210 to switch, up to 7% interest or up to 1% cashback
Switching to a new current account is quick, easy and can earn you up to £210 in free cash & perks. Yet you can get plenty of perks without switching bank account, including up to 2% cashback on bills and decent savings interest. This guide explains it all and helps you choose one that works best for your personal needs.
Top-pick bank accounts
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Top bonuses for switching (see full list)
First Direct: FREE £'210' + TOP service
Barclays: FREE £200 (no-frills account)
Club Lloyds: FREE £200 + perks (eg, Disney+)
Santander: FREE £180 + 1% bills cashback
NatWest: FREE £150 + £36/yr cashback -
Top for ongoing cashback & perks
Zopa: 2% bills cashback
Santander: 1% bills cashback
Chase: 1% spending cashback -
Top for savings interest
Chase: 4.5% for 12mths -
Top accounts if you're overdrawn
First Direct: £250 0% overdraft
Switching bank accounts: what you need to know
Banks offer a range of perks to try and win your custom – from free cash for switching to cashback, interest-free overdrafts and even insurance. The upfront bonus is tempting, but make sure the ongoing perks suit how you use your account. Before diving into the top picks, here are the key things to know about switching:
1. Switching is quick – it takes just seven working days
The Current Account Switch Service (CASS) moves your balance, Direct Debits and standing orders across, and closes your old account. Recurring card payments (for example, subscriptions) don't move, so you’ll need to update these manually. It’s also worth downloading a few years’ statements before switching, in case you need them later.
To switch, open a new account with your chosen bank and request the switch during the application. As long as both banks are signed up to CASS (most major banks are – see the full list), it'll all happen automatically. If anything goes wrong, you’re covered, and payments such as your salary will be redirected for up to three years.
Many have made £1,000s regularly switching bank. See our How often can you switch bank accounts? guide for inspiration.
2. To get bonuses, you must use Current Account Switch Service
Most free-cash switcher deals require a full switch via CASS, which means closing an old current account and moving everything across. You must switch from a different banking group (so you can’t switch HSBC → First Direct, for example). Some accounts won’t qualify, such as those linked to a mortgage, so always check.
3. Check switch requirements – most need 2+ Direct Debits
Most switch deals need at least two active Direct Debits, and sometimes a set number of debit card transactions, to get the switching incentives. An ‘active’ Direct Debit is one that’s paid out in the last 13 months.
It's also a good time to do a quick Direct Debit audit and cancel any you don't need.
4. Watch out for minimum pay-in requirements
Many accounts require you to pay in a set amount each month to get perks or avoid fees. If you can’t afford the minimum, there’s a workaround: say you need £1,000 but only have £500 coming in – pay it in, move it out the next day, then pay it back in. Bingo, that’s your £1,000. Some banks may check your income when you apply, so make sure you’re likely to qualify.
5. You can switch if you’re overdrawn – but check first
You can switch if you're in your overdraft, but how it works will depend on the bank you're looking to switch to. Your new bank will need to agree to match the amount you're overdrawn by. If it does, they'll send the amount you owe to your old bank, so you'll now owe your new bank instead.
If the new bank doesn't agree to an overdraft, or the one it offers you is smaller than the amount you currently owe, you'll need to repay the existing overdraft balance (or at least the difference) with your old bank. This repayment will be arranged by the old bank, who will likely set up a repayment plan. Full info in interest-free (or cheap) overdrafts.
6. Most accounts require a not-too-harsh credit check
Most banks will run a credit check when you apply, even if you don’t want an overdraft, to confirm your identity and assess your application. If you’re declined, don’t assume others will reject you too – criteria differ. Avoid applying for lots of accounts at once, as this can affect your credit record.
7. You can have more than one current account
There’s no limit to how many accounts you can have, so you can open multiple to earn different perks or switch bonuses. But applying for lots in a short space of time can affect your credit record, and it can get harder to keep track of payments and Direct Debits.
8. Your money is safe in a bank account
Your money is secure – the Financial Services Compensation Scheme (FSCS) guarantees up to £120,000 per person, per financial institution. This means that if your bank ever went bust, you would be guaranteed your money back (up to £120,000).
9. On Universal Credit? There may be an extra step to switching
You can switch if you’re on Universal Credit, but after updating your bank details in your UC journal, you may be asked to visit a Jobcentre to verify your ID – especially with app-based banks. This isn’t a problem with your claim, just a security check.
To avoid hiccups, switch just after a payment, update your UC journal as soon as the switch completes, and be ready to show ID, your bank card and a statement if asked.
Martin has called on ministers to make this simpler and fairer – read Martin Lewis's letter to the Government for more.
Top bonuses for switching bank
Banks often offer switch incentives – usually free cash, sometimes boosted savings rates or other perks – to get you to open an account and switch from a rival.
Always check the requirements carefully. If you miss a step you won’t get the bonus.
Earn £75,000+ a year? See top deals for higher earners below.
Boosted. First Direct 1st Account* Key info: | Top for SERVICE. FREE '£210', 7% saver, fee-free overseas spending & £250 0% overdraft for many. First Direct has been top or near-top of every bank service poll we've ever run. And right its boosted its ongoing £175 free cash deal – newbies who open the First Direct 1st Account* via our link also get a £35 voucher which can be used at most big supermarkets instore or online (Aldi, Asda, Iceland, M&S, Morrisons, Sainsbury's, Tesco, Waitrose... but not Co-op, Lidl or Ocado). The account also offers a 7% regular saver on up to £300/month for a year (maxed out that's ~£137 interest) and gives many an ongoing £250 0% overdraft (subject to a credit check). Its debit card is also fee-free for spending overseas. How to get £175 bonus: |
Key info: Who can get bonus? | FREE £200 + optional half-price Apple TV+ subscription. The Barclays Bank Account* has no free perks, but for an optional £5/month fee you can join its Blue Rewards scheme to get Apple TV+ at half its usual cost (normally £10/month). If you go for this you'll also need to pay in £800+/month & register for digital banking. How to get £200 bonus: |
Key info: Who can get bonus? | Top PERKS account. FREE £200 + 6.25% saver, annual perk & fee-free overseas spending. With Club Lloyds you can choose a yearly reward – including Disney+ (with ads), six cinema tickets, Coffee Club & Gourmet Society membership, or a magazine subscription. There’s also a 6.25% regular saver on up to £400/month for a year (maxed out that's ~£160 interest), a £100 0% overdraft buffer, and no fees on spending abroad, so it's a decent travel debit card. How to get £200 bonus: |
Key info: Who can get bonus? | Top (joint) BILLS account. FREE £180, 1% bills cashback, 6% saver & fee-free overseas spending. How to get £180 bonus: Other Santander options (all qualify for the bonus): |
Key info: Who can get bonus? | FREE £150, £36/year cashback & 7% saver. The NatWest Reward has a £2/month fee, but gives £5/month cashback when you pay in £1,250, pay out 2+ Direct Debits of £2+ & use its mobile app each month. So the net gain is £3/month or £36/year. Qualify for the switch bonus and its regular saver pays a boosted 7% interest for a year (you can put in up to £150/month). Unlike other regular savers, this has no maturity date, so you can pay in till you've max £5,000 (though the rate falls to 5.25% after a year). How to get £150 bonus: Other NatWest options: |
All have FSCS savings protection of up to £120,000. See top banks for customer service for more on our service ratings.
High-earner? You could get up to £500 by switching bank
Recently there's been a slew of 'premier accounts' offering switch bonuses, aimed at those with large annual salaries. The switch bonuses are higher, though the accounts are more difficult to qualify for – you'll need to earn roughly £75,000 to £100,000+ a year (or have large savings with that bank).
Lloyds Premier Who can get bonus? | FREE £500 + cashback & health perks Key requirements: |
Barclays Premier Current Account* | FREE £400 + Apple TV+ & rewards (no fee) Key requirements: |
NatWest Premier Reward | FREE £250 + boosted cashback Key requirements: |
HSBC Premier* | FREE £250 + family travel insurance & digital GP Key requirements: |
Don’t want to switch? Top accounts for ongoing cashback & perks
Even if you don’t want to switch your main account to grab a switching bonus, you can still open a second account just for the perks – leaving your everyday banking untouched. Done right, this can earn you £100s a year in cashback and rewards.
Below are our top picks for ongoing rewards (ignoring switch bonuses), so you can compare and pick what suits you.
They’re quick to open alongside your main account. Just note some require a minimum monthly pay-in or charge a fee – so only use them if the perks outweigh the cost. For example, you might use one just for bills to earn cashback, or for spending in certain categories.
And if you do decide to switch your main account, check the top switching deals first.
Get a £35 shopping voucher via top-for-service First Direct
Newbies who open a First Direct 1st Account* via our link will get a £35 voucher which can be used at most big supermarkets online and in-store (Aldi, Asda, Iceland, M&S, Morrisons, Sainsbury's, Tesco, Waitrose... but not Co-op, Lidl or Ocado).
Once open, you'll get an email where you can claim the voucher within 75 days (which you must then do within 90 days). You can't have ever had any account with First Direct, nor had a current account with its sister-bank HSBC since Jan 2018.
This is a top-pick account. First Direct has been top or near-top of every bank service poll we've ever run, plus there's a 7% regular saver on up to £300/month for a year (maxed out that's ~£137 interest), an ongoing £250 0% overdraft for many (subject to a credit check) and a debit card that's fee-free for spending overseas.
You don't need to switch banks for this offer, but you can get an extra £175 free cash if you do (click for full info).
Santander Edge* Key info: | 1% bills cashback + 6% saver & fee-free overseas spending. For a £3/mth fee, Santander Edge* pays 1% cashback on bills you pay by Direct Debit (energy, Council Tax, broadband, TV, mobile, water – max £10/mth). It also offers a 6% linked saver (up to £4,000). The debit card has no fees abroad, giving near-perfect exchange rates. Higher bills? PS. If you switch to Santander from a different bank, right now you can get a FREE £180. |
Key info: | 2% bills cashback & 2% interest on balances (12 months). Zopa Biscuit* pays 2% cashback on Direct Debits for a year (max £30/yr) – including bills such as energy, broadband and mobile – plus 2% interest on your current account balance for a year (no cap). You can also open a linked 7.1% regular saver (max £300/mth for six months), plus an easy-access saver paying 2.95% (though it can be beaten by top savings accounts). The debit card also offers fee-free overseas spending, plus fee-free ATM withdrawals up to £200 in any 30-day period (2% fee above that). It’s app-based, easy to open and only needs a soft credit check. |
| 1% cashback on spending + 4.5% saver & fee-free overseas spending. Newbies to Chase* get 1% cashback on UK groceries, transport and fuel (exclusions apply), up to £15/month. Also offers a 4.5% easy-access saver for 12 months (2.25% variable + 2.25% bonus, up to £3m) if opened within 31 days. The debit card has no fees abroad, giving near-perfect rates, though there's no cashback. There’s also a round-up account paying 5% interest (eg, spend £1.45, save 55p). It's easy to open and only needs a soft credit check with no impact to your credit record. Key requirements: |
Key info: | Free 12 months’ Disney+ or 6 cinema tickets (or other perks) + 6.25% saver & fee-free overseas spending. You also get a 6.25% regular saver (max £400/mth for a year), plus interest on balances (1.5% up to £3,999 and 3% on £4,000–£5,000) if you have 2+ Direct Debits. The debit card has no fees for spending abroad with near-perfect exchange rates. PS. Newbies can get a FREE £200 to switch right now. |
See top banks for customer service for more on our service ratings.
Next best accounts for cashback & perks
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Nationwide FlexDirect. New customers 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.
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NatWest Reward. Get up to £3/month to jump through some hoops (full info here). Also available with sister bank RBS. Plus you can currently get £150 to switch.
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 4.5%.
Chase current account* | Get 4.5% interest for 12 months & 1% cashback on supermarket & transport spends. Newbies who open a Chase current account* can also open its linked easy-access saver within 31 days of opening the account, which gives 4.5%. This is comprised of 2.25% variable + 2.25% fixed 12mth bonus, min 1p, max £3m. Plus there's a 'round-up' account which pays 5% interest (spend £1.45 & 55p is saved into it). You also get 1% cashback on groceries, transport and fuel spends (exclusions apply), max £15/month (after year one, you must pay in £1,500/month to get this). |
Account info: | Get 3.75% interest on current account balances with app-only LHV bank. With LHV bank you get interest on your current account balance – ideal if you're less keen to move money into dedicated savings accounts regularly. The interest rate is variable and matches the Bank of England base rate, which currently stands at 3.75%. LHV bank has the full UK savings safety protection, so anything £120,000 or under is protected by the Financial Services Compensation Scheme. |
Nationwide FlexDirect Account info: | 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. |
All have Financial Services Compensation Scheme savings protection of up to £120,000. See top banks for customer service for more on our service ratings.
Top bank accounts if you're overdrawn
Overdrafts are debts – and one of the most expensive, even if it's an arranged overdraft – so pay it off as soon as you can. See our Cut overdraft costs guide for full help with this.
The accounts below offer interest-free (or cheap) overdrafts which could help you cut costs, though do remember that you're not guaranteed to get an overdraft when you apply. These banks all have overdraft eligibility checkers that will show your acceptance odds before you apply with no impact to your credit history.
You can switch if you're in your overdraft, but how it works will depend on the bank you're switching to. Read our full explainer if you want to switch to one of the accounts below.
First Direct 1st Account* Account info: | 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. You can switch from an account that's overdrawn, but the debt will remain with the old bank and you'll need to clear it separately. So if you're approved for the full £250 0% overdraft and you qualify for the free £175, you can transfer up to £425 to your old bank to reduce or clear what you owe. You'll still be overdrawn on your new account, but it'll be interest-free, so you can gradually pay it off without any interest accruing. Plus, open the account via our link and you'll also get a £35 voucher which can be used at most big supermarkets instore or online (Aldi, Asda, Iceland, M&S, Morrisons, Sainsbury's, Tesco, Waitrose... but not Co-op, Lidl or Ocado). Once open, you'll get an email where you can claim the voucher within 75 days (which you must then do within 90 days). To get the voucher you can't have ever had any account with First Direct, nor had a current account with its sister-bank HSBC since Jan 2018. |
Starling* | No 0% overdraft, but a chance of a lower interest rate. Starling* 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. |
Club Lloyds Account info: | Small £100 overdraft buffer, from an account with a fee. The Club Lloyds account costs £5 a month (waived if you pay in £2,000 a month) and comes with a choice of perk such as 12mths Disney+ or six cinema tickets. On top of this, there's a potential £100 overdraft buffer, which could be handy for occasionally dipping into if required. Though be aware, there's expensive interest of 29.9% EAR after this. Plus newbies can currently get a FREE £200 to switch. |
All have Financial Services Compensation Scheme savings protection of up to £120,000. First Direct's is shared with HSBC. See top banks for customer service for more on our service ratings.
Top bank accounts for insurance
Packaged bank accounts offer various insurance perks (usually travel insurance, mobile phone cover and breakdown cover) for a monthly fee. If you pay for all of these already, a packaged bank account could save you £100s. They're complex and there's a lot to explain, so see our packaged bank accounts guide for full info.
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 March 2026. We've ranked it by allocating two points for each percentage point 'great' and one point for each percentage point 'ok'...
Bank or building society | Percentage 'great' | Percentage 'OK' | Percentage 'poor' | Total responses |
|---|---|---|---|---|
Starling | 93% | 5% | 3% | 148 |
Monzo | 91% | 8% | 1% | 149 |
First Direct | 92% | 3% | 5% | 1,058 |
Nationwide | 89% | 8% | 3% | 1,525 |
Chase | 84% | 9% | 7% | 143 |
Co-op Bank | 61% | 22% | 16% | 140 |
NatWest | 55% | 25% | 21% | 443 |
RBS | 51% | 28% | 21% | 98 |
Virgin Money | 51% | 25% | 25% | 97 |
HSBC | 46% | 32% | 22% | 303 |
Lloyds | 47% | 27% | 26% | 560 |
Santander | 47% | 26% | 27% | 684 |
Barclays | 45% | 27% | 28% | 354 |
Halifax | 42% | 33% | 26% | 289 |
TSB | 41% | 24% | 35% | 119 |
Bank of Scotland | 39% | 28% | 33% | 102 |
These banking service ratings are from our March 2026 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...
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Children's bank accounts. These 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.
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Student bank accounts. These are different from accounts above as they tend to offer large 0% overdrafts while you're studying. For the top accounts and key info, see our dedicated Student bank accounts guide.
What is a current account?
A current account is a type of bank account used for everyday banking 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.
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
Ethical banking: Can you do good with your bank account?
Best way to send money internationally. If sending cash abroad.
How do I open a current account?
Opening a current account is an easy process which usually plays out in the following way:
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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.
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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.
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:
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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.
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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.
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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.
See our Bank statement abbreviations guide for an explainer for what the terms on your statement actually mean.
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:
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Minimum spending amounts to be eligible for rewards, usually over a month or a year.
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Maximum cashback you can earn each month or year.
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Restricted spend categories – for instance, cashback on household bills or supermarket spend only.
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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).
What's a packaged bank 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.
Can I set up Direct Debits with charities to qualify for switch bonuses?
Many banks often want you to move two or more active Direct Debits as part of the switch to qualify for the freebies (an active Direct Debit is one that has paid out in the last 13 months or, if it has never paid out, is less than 13 months old).
Most require this to be done via the Current Account Switch Service (so you'd need those Direct Debits already set up on the account you're switching), though some will allow you to set them up within a certain time after the switch has completed. If you don't have enough, you could simply set up Direct Debits for a couple of quid to charity to meet this criteria (and give a little back too).
Yet don't do this if you'll just set it up and then cancel straightaway, that will cause admin costs for the charity that will easily outweigh your donation. So if you're doing it this way, commit for at least a year.
Can I have more than one current account with the same bank?
Yes you can, though you'll usually be unable to open more than one of the exact same current account. So you could open a standard bank account and a packaged bank account with the same provider, but not two of the same standard current account.
The exception is where joint bank accounts are involved. You can often have two of the same current account if you hold one in your sole name and the other jointly. Though here it's worth thinking about how beneficial it is to have two of exactly the same current account. Are you maximising perks, or are you just getting the the same perk twice? You might be glad of a second linked saver, but you wouldn't want to be paying for identical insurance policies.
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 a bad credit history?
Having a bad credit history 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!
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.
Do I HAVE to close my old account when switching?
Yes, you do have to close your old current account if you're using the Current Account Switch Service (CASS) to switch bank. But this doesn't necessarily mean the new bank has to be your main current account.
If you'd rather keep your old current account open, or your old or new bank is one of the few not signed up to CASS, it is possible to use the older, slower and more complicated system. Your payments will still be switched over, BUT there's less protection if anything goes wrong and it's likely you won't get any of the switch incentives.
However, a way around this, to keep your old current account AND still earn a switch bonus, is to open a new 'burner' account to switch from instead. See Can you make £1,000s by repeatedly switching bank?
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 the Current Account Switch Service (CASS) to switch a sole account to a joint account. Do remember that this'll link your finances (even if your application is unsuccessful), 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 using CASS.
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. See Top savings for full info.
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