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Ditching & switching is better than bitching
New. Free £205 bank switch OR last chance £200 & top service 

Right now banks are fighting to PAY YOU FOR YOUR BUSINESS, with £200 cash, 16mths' free insurance, 0% overdrafts & bills cashback

Does your bank make you happy? If it does, great. If not, don't complain, switch! We're in a sweet spot for current account (day-to-day) banking deals right now, with five banks willing to pay you to switch, and a host of other privileges and perks available, too. So, we wanted to guide you through this plethora of choice. 

We've grouped deals into four types, so first work out which appeals most, then jump to full details on each type. There is some overlap...

1. Up to £205 FREE switching cash. An easy way to make money, plus some that pay are among the best ranked. Jump to free cash.
2. Up to 2% cashback on bills. No switching needed - best for specific accounts or joint accounts you pay bills from. Jump to bills accounts.
3. The 0% overdraft (& free cash) option. Overdraft interest is usually a dangerous 40%, so if you dip into yours, focus on this as the cost can outweigh other perks. Jump to 0% overdrafts.
4. Get £500 of added mobile, travel & breakdown insurance. With packaged bank accounts you pay a £10 to £20 monthly fee, but get high-quality insurance included. If you'd buy these anyway, this can be very lucrative, especially for couples & families, and right now some give switch bonuses meaning in effect you get over a year for free. Jump to insurance winners.

Switching is easy & hassle-free: Not all deals require you to switch, but if they do, don't worry, for most it's usually easy and hassle-free. All those that do are signed up to the seven (working) day switch service.

This closes your old account and moves all your money, Direct Debits & standing orders for you. Any payments to the old account are auto-forwarded. The only thing it doesn't do is move 'recurring payments' for you - these are subscriptions made by giving the long number on your card - eg, for Netflix & Amazon Prime. Those you'll need to do yourself. You also usually have to pass a not-too-harsh credit check.

A crucial measure of bank profitability is the 'cross-sell' ratio, ie, how many different products they can sell you. And banks believe if they have your current account custom it's easier to sell you other things, which is why some are willing to (legally) bribe you to switch to them. 

We say grab the cash, but don't feel the need to be loyal. You needn't stick with the bank for other products, so bag yourself the best credit card, loan, savings, mortgage and more from across the market. However, don't let that stop you getting paid for your custom.

• Ends Thu. Existing Nationwide customer? Strong FREE £200 switch deal available. There's a £200 switch bonus for those who already have a Nationwide personal savings account (including cash ISAs) or residential mortgage switching an account in. Plus existing current account customers can also get the £200 but only if switching a current account in from another bank (and you can't have had a Nationwide switch bonus before, unless on a joint account & this is single, or vice-versa). If you qualify, do read our full Nationwide eligibility & review.

• Will switching bank affect my credit score? One extra search on your credit file shouldn't make much difference (though many in a short time can). Some lenders do score you down short-term for switching bank accounts as they like evidence of longevity.
  
  For belt 'n' braces safety, if you're imminently (within a couple of months) about to apply for a mortgage or an important, needed debt, prioritise that and avoid switching until after. Otherwise, one bank switch isn't really an issue. More in how switching banks affects your credit.

Get 1% spending cashback on top with any account

The app-only Chase current account* is easy to get - there's no need to switch or pass a hard credit-check. Plus, it gives 1% cashback on UK groceries, transport and fuel (exclusions apply) for spending on its debit card, up to a max £15/mth (after year one, you must pay in £1,500/mth to get this). It also currently offers new customers a 5% easy-access savings account (max £3m). So you can use the other banks, then put money in Chase each month for this type of spending, to get the best of both worlds. The Chase debit card is also top for spending abroad, and you get 5% variable for a year on its linked saver. See our full Chase review.

• You may be able to make £1,000s by repeatedly switching bank. Becoming a bank bribe bagger can pay well - we've had people tell us they've made a shedload. Could you do it too? See full pros & cons in make £1,000s by repeatedly switching bank.
  
  As Tommy emailed in April: "Hi Martin. Thank you for your bank-switching and bank loyalty payment info. I may be the king of the switchers, or am I...? I've received £2,135 free money from the banks with your help. Keep the info coming, thanks again."
  
  
• I don't qualify for one of these accounts - what can I do? Unfortunately, over a million people don't have a bank account. Yet if you've ID, you can get an account with no overdraft. Do read our Basic bank accounts guide.
  
  

A useful trick for budgeting is to have a separate bank account for bills, so you put money in it to cover them, and you know that what's in your normal account is for spending. This can be even more useful for couples with individual accounts, but then a joint one for bills. 

If you already have one or want one, you should consider a couple of accounts that currently pay cashback on bills you pay from them. Biscuit is a new current account from Zopa Bank, the other is Santander Edge which we've already gone through in detail above. We've pitched them head-to-head below so you can see which wins for you.

If you're willing to switch account to do this, Santander is the clear winner here due to the free £205. 

For those who aren't, both can be opened without switching. In that case, it's closer. While Biscuit pays cashback on all Direct Debits, the £30/yr cap is limiting, so if you've relevant bills of £550+ a month (even factoring in the fee) Santander still wins.

Bigger bills? Santander Edge Up* costs £5/mth but gives up to £15/mth back on most household bills (so max £180/yr) and you still get the free £205 for switching to it. So for bills over £1,200/mth it beats the standard Edge account. The min pay-in is £1,500/mth, though, and you can't open the 6% saver with this account.

Overdrafts are a danger debt - the typical interest rate is 40%, so best avoided. On social media last week, in Martin's X poll of 29,000 people...

- 71% were never overdrawn
- 11% were overdrawn once or twice a year
- 8.5% were often overdrawn 
- 8.9% were almost constantly overdrawn

Frankly, unless you're never overdrawn, ensuring you've a cheap overdraft option is important. Too many think 'credit cards bad, debit cards good'. For those overdrawn, it's more a case of 'credit cards bad, debit cards worse', because of overdrafts' now typical 40% rates - nearly double bog-standard high-street credit cards.

You CAN switch banks if you're overdrawn. Though there's no guarantee the new one will offer you an overdraft or even match your existing one. But the banks below have overdraft eligibility checkers you can use before applying to see whether it's likely you'll qualify. Full info in top overdraft accounts, but in brief...

• A possible £250 0% overdraft, and, if you switch, £175 free cash & £25 Amazon voucher. First Direct* (full details above) gives accepted new switchers a free £175 cash which can help reduce what they owe, and many get a £250 ongoing interest-free overdraft too (credit score dependent, and it's the standard 40% above that). So, this is good for smaller overdrafts, or those who just dip in.
  
  

  You will have to 'switch' the overdraft over yourself. While all your Direct Debits and standing orders will be moved as normal, expect your old bank to ask you whether you can pay the overdraft off, or whether you want to keep the account open while you do (it varies by bank). If you do keep it open, payments to the old account are unlikely to be forwarded to the new one so you may need to arrange to move them yourself.

• Small £100 0% overdraft buffer plus £185 free cash. Club Lloyds (details above) is currently offering new switchers £185 and also gives an ongoing £100 0% overdraft (again, credit score dependent, and it's the standard 40% above that). It's a good option if you're only a small way into an overdraft. Plus, you get a free perk for 12 months, eg, Disney+ with ads or 6 cinema tickets. Only do this if you'll meet its £2,000/mth minimum pay-in though, or you pay a £5/mth fee.

• Lower interest rate overdrafts. App-only Starling has no 0% overdraft but does offer overdrafts with rates typically lower than most other banks. Depending on your credit score, you could get a 15%, 25% or 35% overdraft, so check your eligibility on its site before you apply. Still, at these rates it's costly so you'd be better to try a...

• 0% money transfer credit card. This is a specialist card that allows you to do a special transaction to pay money into your bank account, so you then owe it at 0% instead, and you can use that time to clear the debt. You can get up to 14mths 0%, though be careful, it's easy to get it wrong. Our Money transfers guide takes you through it, including top deals.

Martin's 5 top tips to cut your overdraft...

The rate isn't the only thing to focus on. Our Cut overdraft costs guide has full info, but here are Martin's 5 most important tips:

a) Aim to repay a fixed monthly amount. For example, if you're £500 overdrawn, 'paying' £100 means aiming to be £400 overdrawn at month end. A budget will help.
b) Consider moving Direct Debits to just before payday. The idea is you're overdrawn for less time, so costs are lower.
c) Got savings? Use 'em to clear it. See Repay debt with savings?
d) Can you reclaim past bank charges? See Bank charge reclaiming.
e) Struggling with all debt? Get free help from Citizens Advice, National Debtline or StepChange. It can make a huge difference.

Packaged bank accounts are those where you pay a monthly fee, and lots of insurance products are thrown in.

If you're the type of person who shells out £100s each year for family travel insurance, breakdown cover, and mobile phone protection, then they could save you money. Our top picks are below & many more options are in Top packaged bank accounts.

PS: If you wouldn't get the insurance separately, don't touch them. In fact, many people were wrongly upsold them in the past and can reclaim packaged bank account fees.

• FREE £185 cash on £11.50/mth account means essentially you get 16mths free. New switchers to Club Lloyds Silver get £185 free (if moving 3+ Direct Debits over) and pay £11.50/mth (min pay-in £2,000/mth or there's a £5/mth fee). It includes:
  
  - European travel insurance for the whole family (max age 65)
  - Mobile phone cover for the account holder(s)
  - Family UK breakdown cover (roadside assistance only)
  
  You also get the usual Club Lloyds reward - eg, a choice of 12mths' Disney+ (with ads), six cinema tickets etc - and fee-free spending and ATM withdrawals abroad.
  
  PS: If you're in a trusting relationship, add your partner to the account even if they won't use it, then their mobile phone is covered too.
  
  
• Top family account at £12.50/mth. Virgin Money's Club M is strong for family gadget cover which can be worth £100s. It includes:
  
  - Worldwide family travel insurance (max age 74)
  - Mobile phone & gadget cover, eg, tablets, laptops for the whole family (ie, any relative living at the same address as you)
  - UK & European breakdown cover for the account holder(s)
  
  
• Top for older travellers at £18/mth. Nationwide FlexPlus costs £18/mth and includes:
  
  - Worldwide family travel insurance, crucially with no upper age limit (though always declare pre-existing medical conditions)
  - Mobile phone cover for the whole family (ie, you and your partner, plus any unmarried children under 19, or 22 if in full-time education)
  - UK & European breakdown cover for the account holder(s)
  
  It also offers a £200 switch bonus for existing Nationwide customers on the same terms as the fee-free account above.