Current Accounts

Great for switching cashback

Switching current accounts has never been simpler, and many providers are offering lucrative incentives for moving your account to them. 

When you switch your current account to a new bank or building society, you could get £100 or more in cashback as a reward for switching. Just make sure that you’re applying for an account that suits your needs, not just the one with the highest cashback.

Ongoing rewards

If you tend to stay in credit and never go overdrawn, you could get rewarded regularly by your bank or building society. By switching to a rewards current account, you could get a monthly reward payment and earn cashback on your spending. Some providers will also offer a cash incentive for switching your current account to them.

Many rewards accounts have requirements such as paying in a minimum amount each month, or having a minimum number of direct debits, so make sure you can meet the criteria to get the rewards. 

Great for balances below £3,000

If you tend to keep a healthy balance in your account, and you don’t slip into the red, you could get rewarded for your efforts with a high-interest current account. In fact, you could earn as much as 5.00% AER on balances of up to £2,500, so long as you pay in the minimum required amount every month.

Just be aware that the interest rates on some accounts are only available for a fixed introductory period, and will drop after this.

Great for high in-credit balances

If you’ve got savings of £3,000 or more, a conventional savings account may not be the best way to get the most out of your money. Instead, you could earn a higher rate of interest by keeping your cash in a current account that pays a competitive return on high balances. . 

Some accounts, for example, offer rates of 1.5% AER on balances of up to £20,000, and you may also be able to earn cashback on some of your household bills.

Many of these accounts require you to pay in a minimum amount every month, and some also come with monthly fees, so make sure you consider this when comparing accounts.

Top for customer service

If you’re fed up with getting poor customer service from your bank, switch your current account to a provider that’s known for looking after its customers. 

As well as making your life easier, some of these accounts offer extra benefits such as competitive overdrafts or cashback for switching. 

Many current account providers require you to pay in a minimum amount every month, so make sure you can manage this.

What is a current account?

A current account is a bank or building society account that allows you to manage your day-to-day spending.

You can have your salary paid into it, set up direct debits and standing orders and negotiate an overdraft. Some accounts also pay interest on balances and offer cashback on spending.

Current Accounts Guide

We’re getting generally better at switching financial products and shopping around for a better deal. But changing current account provider is something that continues to elude most of us. In fact, an estimated six out of ten adults have never switched their current account.

There are 54million current accounts in the UK, making them big business for banks. And, as they know that once they’ve got your custom, they are unlikely to lose it, it can result in some uncompetitive deals and customer service.

The big four banks – Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, which owns NatWest – control more than 70% of the current account market even though their standard current accounts pay paltry, and in some cases no, interest. Their overdraft rates can be uncompetitive too so why do so many people stay put?

The common perception is that switching current account is a lot of hassle for little gain but this isn’t the case. Many banks now have dedicated switching teams which ensure the transfer process runs smoothly. And from September 2013, the Current Account Switch Service comes into effect. Amid other consumer guarantees, this will ensure the process takes a maximum of seven working days. So now is the time to stop being loyal to your bank and get more from your current account.

What should I look for when choosing a current account?

The assumption many people make is that current accounts are all pretty similar so it doesn’t really matter which provider you bank with. But, especially these days, that perception is a long way from the truth.

Some of the major providers are battling to attract new current account business by offering some fantastic deals, including upfront cash incentives. However, the product that is best for you will also depend on how you use your current account. So we’ve come up with some common customer profiles that should help you identify the key things to focus on when choosing a current account.

If your current account is usually in credit, look for a deal that pays a decent rate of interest – the choice of these is growing!

If you are usually overdrawn, look for the cheapest overdraft rates. Some accounts now also offer fee-free overdrafts for a certain time period.

Look at how you manage your bank account. Some current accounts are based only online for example so, if you prefer to transact face-to-face in a branch, these won’t be suitable.

If you do require branch access, and see an account that looks attractive, think about where the nearest branch of that bank or building society is as there’s little point moving your current account over if you’ll have to travel miles to get to a branch.

Think about whether you want to pay a monthly fee for a packaged current account which offers services such as breakdown cover and annual travel insurance.

Finally, if you frequently travel abroad, check out any foreign transaction fees for using your debit card as these also vary.

How we work

We want to show you current accounts from as many banks and building societies as possible, so that you can find the best option for you. We can’t promise to have accounts from every single provider, because some don’t want to be included on comparison websites.

You can find out more about how we work here.