Best bank accounts

Best bank accounts
Get £175 to switch, up to 6% interest or up to 1% cashback

If you’re dissatisfied with your current bank, changing to a new one is fast and simple – and there’s no better time than now, as banks are offering up to £175 to attract new customers. However, switching isn’t always necessary to secure a good deal; some accounts provide cashback on expenditures or bills, or offer competitive interest rates on savings. This guide covers all the details and assists you in comparing the best available accounts.

Top-pick bank accounts

• Top bonuses for switching
     Barclays: FREE £175 + Apple TV+
  New. TSB: FREE £100 + £15/mth for 6mths
  Co-op Bank: FREE £100 + £10/mth for 6mths
• Top for longer-term rewards
     Santander: 1% bills & supermarket/travel cashback
  Chase: 1% cashback + 4.1% interest
• Top for savers (pays interest), including
  Kroo: 4.35% on up to £500,000
  Chase: 4.1% on up to £1m
• Top if you’re overdrawn, including
  • First Direct: £250 0% overdraft
  • Nationwide: 12-month 0% overdraft
• Top if you want insurance
  • Virgin Money: £500+/year insurance for £150/year
• Top for customer service

What is a current account?

A current account is a form of bank account designed to keep your money safe and assist in managing your finances. It provides a convenient method for making payments to others (such as through standing orders and Direct Debits) and for receiving payments (such as from your employer). Additionally, it comes with a debit card that enables you to make purchases and withdraw cash from ATMs.

Although you might utilize other financial products, like credit cards or savings accounts, your current account typically serves as the central hub for transferring funds to these accounts or paying bills, ensuring seamless financial operations.

Is my money safe?

Your funds are protected – the Financial Services Compensation Scheme ensures coverage up to £85,000 per individual, per financial institution. This assurance means that if your bank were to fail, you would be guaranteed a refund of your money up to the £85,000 limit.

How do I open a current account?

Opening a current account is straightforward. The easiest method is to fill out an online application form, although many banks also offer the option to open an account in person or over the phone if that suits you better. The application form will ask several questions about your personal and financial details and typically takes about 10 minutes to complete. Occasionally, there may be additional steps, such as providing identification or payslips, though this is uncommon.

You will also need to consent to a credit check by the bank when you apply, even if you do not request an overdraft. This is because banks use information from credit reference agencies to verify your identity. While this might seem redundant, it is a legal requirement for banks to ensure they are not enabling money laundering, and verifying a customer’s identity is part of this process.

For comprehensive details on setting up an account, refer to our How to Open a Bank Account guide.

Compare account perks to get one that works for you

When deciding which bank account to choose, consider the features you want. Some accounts offer interest on your balance, others provide cashback, and some include insurance or 0% overdrafts. Determine which of these features are most important to you.

It is also important to think about how you want to open and manage your account. Do you prefer an account that you can open and operate entirely online? Or do you value being able to visit a branch in person? If you prefer the latter, avoid app-only banks.

Additionally, review the account’s eligibility criteria before applying. Some accounts have fees or require you to deposit a certain amount each month to access their features. Others may require a good credit score, so be sure to read the fine print before applying.

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

The Current Account Switch Service (CASS) offers a simple process that only takes seven working days. To start, open a new account with your preferred bank and request a switch through that bank—this option is typically offered during the application process. As long as both banks participate in CASS (which most do), the service will close your old account and transfer your funds, Direct Debits, and standing orders to your new account. It’s a good idea to download several years’ worth of statements before switching, just in case you need them later.

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 transfer any payments intended for your old account to your new one, such as your salary. If any issues arise, automated systems handle them, ensuring that for at least three years, any funds deposited into the old account or mistakenly scheduled to be withdrawn from it are redirected to the new account. Additionally, if you incur any fees due to a mistake in the switch, the new bank should reimburse those charges.

• Acorn Account
• 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

Are recurring payments from my card also moved?

No. Otherwise referred to as continuous payment authorities, these arrangements are established using your debit or credit card information rather than your account number and sort code. They are frequently utilized for memberships, online subscriptions, and payday loan repayments. The business will request the long number on your card, granting them the authority to withdraw funds from your account.

If you switch cards, it is necessary to provide your new card details to any companies that withdraw money using this method.

Some banks require you to switch ‘active’ Direct Debits. What does this mean?

An active Direct Debit is defined as one that has made a payment within the past 13 months or, if it has not yet made any payments, has been set up for less than 13 months.

This dormancy rule for Direct Debits allows them to stay active even if they aren’t used every month, accommodating the possibility of future use or annual payments. However, after the 13-month period, your bank might deactivate them or remove them from your account.

Do I HAVE to close my old account when switching?

Yes, when you switch using the Current Account Switch Service (CASS), which is typically required to receive any switching incentives, your new bank will automatically close your old account and transfer all your payments, such as Direct Debits and salary deposits.

However, if you prefer to keep your old account open or if either your old or new bank is not a participant in CASS, you’ll need to use the traditional, slower, and more complex method. Although your payments will still be transferred, this method offers less protection in case of any issues and you are unlikely to receive any switching incentives.

Can I switch a sole account to a joint account and vice versa?

If you’re considering combining your finances with a partner, you can use the seven-day switching process to convert a single account into a joint one. Keep in mind that linking your finances means their credit history might impact yours, so it’s important to weigh the decision carefully.

However, it’s worth noting that this process doesn’t allow you to switch from a joint account to a single account within the seven-day timeframe.

I have other products such as an ISA and credit card with my bank – what will happen to them if I switch away?

Many of your other financial products are completely independent of your current account, so transferring your account won’t impact them and is perfectly okay to do. Even if you have Direct Debits set up, these will be automatically transferred to your new account, so there’s no reason to hesitate about switching.

However, be aware that some specific regular savings accounts are tied to current accounts and offer special rates for having the linked current account. If you switch banks, you might lose access to these specific benefits. You should be aware if you have such an account, and your new bank might offer comparable options.

Can I switch my savings account too?

Unlike current accounts, savings accounts don’t come with a dedicated switching service. However, transferring your savings is straightforward: just open a new savings account and move your funds there.

We’re in a highly competitive period for savings interest rates, with top rates fluctuating often. For detailed information, check out the Top Savings section.

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

To qualify for many of the top accounts featured in this guide, you’ll often need to deposit a certain amount each month to access the benefits or avoid fees. However, if meeting the minimum deposit is challenging for you, there’s a workaround.

For instance, if a £1,000 minimum deposit is required but you only have £500 available, you can still meet the requirement by depositing the £500, withdrawing it or transferring it to another account, then depositing it back in. This strategy allows you to effectively meet the £1,000 minimum.

Note: Be aware that some banks may reject your application if your income does not meet the minimum monthly deposit requirement.

Below, we outline the minimum deposit requirements for the bank accounts discussed in this guide and the potential consequences of failing to meet these minimums.

Top bank accounts ranked by minimum pay-in

(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

Most major banks now impose interest rates of around 40% for overdrafts, which is double the rate typically charged by high street credit cards. However, some banks offer lower rates, and a few even provide 0% overdrafts. If you’re currently overdrawn, it’s worth checking out the top overdraft deals listed below to find the most affordable options.

It’s important to remember that switching banks while you’re overdrawn is still possible, although it can be challenging. This depends on the lending policies of the new bank, which may choose not to grant an overdraft or might offer a reduced limit. Nevertheless, it’s worth exploring, as many banks provide eligibility checkers to help you determine your chances of securing an overdraft before you apply.

For additional assistance with managing your overdraft, refer to our comprehensive guide on reducing overdraft charges.

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

Banks will evaluate your application using a credit check alongside the information you provided to determine whether to approve or decline your request for an account.

If you are turned down, there could be various reasons. For instance, you might have a poor credit history, previous issues with the bank such as missed payments, or the bank might simply believe you won’t be a profitable customer.

However, don’t be discouraged if one bank rejects you—this doesn’t mean other banks will automatically do the same. Nonetheless, avoid applying to multiple banks indiscriminately, as this could negatively impact your credit score.

Instead, take two key steps: first, inquire with the bank about the reason for your rejection. While their response might be somewhat general, it should clarify whether your credit record was the issue.

Next, review your credit reports from the three major credit reference agencies to identify any issues or inaccuracies. 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

Unfortunately, up to one million individuals in the UK face rejection from traditional bank accounts, frequently due to previous credit issues. However, if you can demonstrate your identity and address, you should qualify for a basic bank account. These accounts are not subject to rigorous credit checks, making them accessible to the majority.

While a basic bank account allows you to perform most of the same functions as a regular account, it does not offer overdraft facilities. For comprehensive guidance and advice, refer to our Basic Bank Accounts guide.

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

Packaged accounts can be a fantastic way to save several hundred pounds annually, offering a range of insurance policies—usually including travel, breakdown, and mobile phone coverage—for a single monthly fee.

However, they might not be worthwhile if you don’t require the coverage they provide or if you can find a better deal elsewhere. It’s important to review your needs before committing.

For additional guidance on whether a packaged account suits your needs, consult our guide on the Best Packaged Accounts.

Top bank accounts that give bonuses for switching

To be eligible for switch bonuses, you need to close and finalize a complete transition of your old account through the Current Account Switch Service. This process is handled by the new bank you’re transitioning to. The service will seamlessly transfer all your payments, Direct Debits, and standing orders to the new account.

Additionally, it’s a good idea to download several years’ worth of statements from your previous bank before you switch. This can be useful if you need to refer to them later.

Important: You must use the official Current Account Switch Service to qualify for these offers (see which banks are signed up). Also, the accounts you’re switching between must be with different banks.

Top bank accounts for longer-term rewards

Reward accounts, also known as cashback bank accounts, offer free cash incentives for using them as your primary banking option. Typically, the cashback is a percentage of your spending on bills or might require you to complete a certain number of transactions, set up Direct Debits, or utilize digital banking features.

Nevertheless, many reward accounts come with a monthly fee, so it’s crucial to assess whether the cashback you earn will surpass this cost. Additionally, some accounts may require a minimum monthly deposit. Be sure to evaluate all the account’s requirements, rewards, and additional benefits (such as overdraft options) before making a decision.

Here are some top reward current accounts worth considering.

Top bank accounts that pay savings interest

You don’t need to switch to the accounts listed below to earn interest. For comparison, the highest rate available on easy-access savings accounts for everyone is 5.2%.

Top accounts if you’re overdrawn

Overdrafts are a form of debt and can be among the costliest financial options, even if they are prearranged. Addressing only the symptoms of your overdraft isn’t sufficient; it’s crucial to focus on eliminating it. For comprehensive advice on reducing overdraft fees, refer to our detailed guide.

Accounts often come with an overdraft feature that might help you manage costs more effectively in the long run. However, keep in mind that approval for an overdraft is not guaranteed upon application. We have provided information on how to locate banks’ overdraft eligibility checkers (if available), which can assist you in determining your chances of approval before you apply.

Top bank account for insurance

Here is our premier choice for a packaged bank account that, for a monthly charge, includes a range of insurance benefits. Before signing up, be sure to compare prices to see if purchasing insurance separately might be more cost-effective. For additional alternatives, explore Packaged bank accounts.

Top banks for customer service

Participants rate their experiences as ‘Great’, ‘OK’, or ‘Poor’, and we compile these ratings to give a general sense of each bank’s performance.

Here are the findings from our latest survey conducted in July 2024, listed by the highest proportion of ‘Great’ ratings. For your convenience, we’ve included links to banks featured in our various banking guides, allowing you to access comprehensive reviews easily. The top three banks are highlighted separately for quick reference.

Need a bank account for a child or student?

While there’s a traditional emphasis on honoring one’s elders, banks are certainly going all out to attract the younger crowd as well…

Children’s bank accounts

Children’s bank accounts are typically designed for individuals aged 11 to 17. They function similarly to regular adult accounts but generally lack features such as overdraft options or credit checks. Additionally, many of these accounts restrict transactions at certain locations like gambling establishments and liquor stores. For comprehensive details, refer to our guide on Children’s bank accounts, which also provides information on prepaid cards for kids if that might be a more suitable choice for your child.

Student bank accounts

Student bank accounts have their own unique characteristics compared to regular accounts, often featuring substantial 0% overdrafts during your studies. For information on the best options available, check out our specialized guide on Student bank accounts.

Cashback sites may pay you for signing up

As an added benefit, individuals who join certain specialized cashback websites may receive payments for signing up for specific financial products. Be sure to verify that the offer matches precisely, as conditions can vary. Additionally, keep in mind that cashback is not guaranteed until it appears in your account.

For comprehensive guidance on how to make the most of these opportunities, along with a detailed overview of the advantages and disadvantages, refer to our Top Cashback Sites guide.

Want to complain about your bank account?

If your bank has billed you incorrectly, deducted an erroneous amount, or provided subpar service, you don’t have to endure the inconvenience quietly.

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.

Q – What do I do if I’ve sent money to the wrong account?

A – When transferring funds to another account, many banks now implement the Confirmation of Payee system. This feature verifies that the name associated with the account you’re sending money to corresponds with the sort code and account number you provide. Should there be any discrepancy, the bank will notify you, allowing you to correct any mistakes before finalizing the transaction.

For banks not yet utilizing this system, the traditional method remains in place. This approach relies solely on the sort code and account number. Consequently, if these details are entered incorrectly, the funds might be mistakenly transferred to an unintended recipient’s account.

If you accidentally send money to the wrong account, here’s what you should do and what to expect:

• Contact your bank straightaway to let it know about the mistake. Even though banks are unable to reverse payments that have already been processed, reaching out to them promptly can expedite the resolution process. It’s wise to document all communications with the bank and record the exact timing of the error. Additionally, if you are aware of the specific mistake you made—such as entering an incorrect sort code—be sure to note that detail as well.
• Your bank will act within two working days of you telling it. It doesn’t matter if you realize your error a week or even a year later. It’s wise to regularly check your accounts to ensure your payments are going to the correct recipient.
• As long as there are no disputes, your money will be returned within 20 working days. If there’s solid proof of a legitimate error, your bank will reach out to the bank that received the funds on your behalf. They will ask that the funds not be used by the individual who unintentionally received them, and you will be reimbursed.

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.

Q – How does it work with reward payments and tax?

A – In addition to providing interest or bonuses for switching accounts, some current accounts now offer rewards for maintaining the account and fulfilling specific conditions, like depositing a specified amount monthly or having Direct Debits set up.

For example, the Halifax Reward Account pays out rewards with basic-rate tax already deducted, while others provide rewards without any tax deductions.

These rewards are categorized as ‘annual’ or ‘miscellaneous’ payments rather than savings income for tax purposes. Consequently, they do not affect your personal savings allowance, but they are subject to tax.

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.

Q – Is there a way to track down old bank accounts?

A – In the UK, there are millions of pounds sitting in old, inactive accounts that remain unclaimed. If you’ve changed bank accounts multiple times, it’s possible that some of your previous accounts were never properly closed.

It’s straightforward to get it back – we’ve full details in the Reclaim forgotten cash guide.

Q – What’s the difference between a Direct Debit, standing order and recurring payment?

A – A Direct Debit allows a company to withdraw funds from your bank account with your authorization. The amount withdrawn can fluctuate based on what you’re paying for. While you have limited control over the exact sum being debited, the company usually provides you with a statement detailing the amount and the date of withdrawal. And the Direct Debit guarantee means you’re entitled to a refund if there are any errors in the payment.

A standing order is a directive you give to your bank to transfer a specific amount of money to another account regularly. This can be used for various purposes, including paying bills, mortgage installments, or sending money to an organization. You have complete authority to determine both the amount and the frequency of these payments, as you set them up personally.

On the other hand, a recurring payment, sometimes referred to as a continuous payment authority (CPA), involves providing a company with your credit or debit card details. The company then uses these details to arrange ongoing payments from your card. You’ll recognize a recurring payment when you provide your 16-digit card number rather than your bank account number and sort code.

Recurring payments are commonly used for subscription services, such as streaming platforms or meal delivery services. Unlike standing orders, you have less control over the timing and amount of these transactions, and you may not receive prior notification of payments being deducted.

To stop these payments, you can request your bank to cancel them and also contact the service provider to terminate the service. For more details, refer to the section on Recurring payments.

Q – What does cashback involve?

A – Cashback refers to a financial incentive for making purchases, where you receive a percentage of the money you spend back as a reward. This refund is credited to you by your credit or debit card issuer, hence the term “cashback”—even though the reward isn’t in physical cash. Additionally, there are numerous cashback websites that provide rebates for online shopping, but this article will focus primarily on reward bank accounts. For further details on these sites, check out our guide to Top Cashback Sites.

The amount you can earn through cashback varies based on factors like the cashback percentage and the total expenditure. Typically, reward cards offer cashback rates ranging from 0.25% to 1%. For instance, if you use a card with a 1% cashback rate to spend £100, you would receive £1 back. However, some cards may feature enticing introductory offers with cashback rates as high as 5% for a limited time.

Cashback rewards are usually distributed either monthly or annually, and there is no restriction on holding multiple reward cards. Nonetheless, each new card application might affect your credit score. Common terms associated with 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.

Keep in mind that if you don’t pay off the full balance on your rewards credit card, you’ll incur interest charges, which could negate any cashback benefits you’ve earned. Additionally, many issuers impose a flat fee for using a rewards card, which can further diminish your rewards.

Q – How do bank switch bonuses work?

A – To receive a switch bonus when changing accounts, you must close your old account using the Current Account Switch Service (CASS). This process is managed by the new bank you’re transferring to. During this switch, all of your payments, Direct Debits, and standing orders will be transferred to the new account.

Typically, there are specific requirements you need to meet to be eligible for the bonus. These may include depositing a set amount (either as a lump sum or on a monthly basis), using the bank’s mobile app, or opening a linked savings account. It’s crucial to review these criteria thoroughly before making the switch, as failing to adhere to any of them will result in not receiving the 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).