Saying goodbye to something you’ve had for years is never easy, but when it comes to your current account, it pays to switch.
Staying loyal to your bank means you could be missing out on some great deals, including the chance to earn something back – often in the form of cashback – just for making the switch.
Our recent Twitter poll found that 58% of voters* have never switched current accounts, but by doing so you could benefit from better customer service, a competitive overdraft, the chance to earn interest on in-credit balances, and/or cashback rewards.
7-year itch? Bank on the 7-day switch
If you think it’s a hassle to switch, the good news is it’s never been easier thanks to the Current Account Switch Service which guarantees seven-day switching.
Introduced by the government in 2013, the Service is hassle-free, safe, free to use and you can choose and agree your switch date with your new bank.
Your new bank will take care of moving all your outgoing payments (for example, your direct debits and standing orders) as well as those coming in (for example, your salary). It’ll also move any money held in your existing account before closing it. You can read more about the Current Account Switch Service in our guide.
Finding the account that’s right for you
Current accounts have remained competitive in recent years and there’s a wide range of accounts to choose from. So it’s important to compare your options carefully and make sure you’re choosing the current account that’s right for your needs.
Below, we highlight some of the top options:
First Direct 1st Account
If you switch to the First Direct 1st Account via MoneySuperMarket using the Current Account Switch Service, you’ll receive £125.
To be eligible for the incentive, you must pay in £1,000 or more within the first three months of opening the account.
You will also need to pay in at least £1,000 a month or have another product with First Direct, such as a mortgage, to avoid the £10 monthly fee on the account.
The account also offers a £250 interest-free overdraft**, although you'll be charged 15.9% EAR (variable) on arranged overdrafts above this. Overdrafts are subject to status and approval.
First Direct prides itself on top customer service, but if you’re not happy with it, the bank will give you £100 if you wish to leave. However, you must have held the account for at least six months before you are eligible for the cashback.
NatWest Reward Account
You’ll receive £150 for switching to the NatWest Reward current account, provided you use the Current Account Switch Service before 15 February, 2019.
You’ll need to pay in at least £1,500 and log in to digital or mobile banking by 22 March, 2019 and you’ll receive your cashback in your account by 19 April, 2019.
As well as this, you can earn 2% cashback on seven household bills (council tax, mobile, landline, TV package, water, gas, electricity and broadband), so long as you pay them by direct debit from the account.
To qualify, you will need to log into online or mobile banking at least once every three months and pay in £1,500 to an eligible account each month. There is a £2 monthly fee on the account.
TSB Classic Plus Account
TSB’s Classic Plus current account pays an ongoing rate of 5.00% AER (variable) on balances up to £1,500.
You will need to pay in £500 a month and register for internet banking, paperless statements and paperless correspondence. You’ll need to log in to your account regularly.
Nationwide FlexDirect Account
Nationwide’s FlexDirect account pays 5.00% AER fixed for 12 months on balances up to £2,500, and 1.00% AER (variable) after that. You’ll need to pay in at least £1,000 a month to qualify.
The account also offers a fee-free arranged overdraft for 12 months. But once those 12 months are up, you’ll be charged a daily usage fee of 50p on arranged overdrafts of £10 or more***.
* Based on 600 respondents, January 2019.
**Representative Example: Assumed arranged overdraft of £1,200: 0% EAR variable on first £250 then 15.9% EAR variable.
***Representative Example: If you use an arranged overdraft of £1,200 the amount you’ll be charged is 50p per day (variable).
All overdrafts are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.
MoneySuperMarket is a credit broker - this means we'll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a commission by the lenders - though the size of that payment doesn't affect how we show products to customers.
PLEASE NOTE: THE INFORMATION IN THIS ARTICLE WAS CORRECT AT THE TIME OF WRITING. ANY RATES OR DEALS MENTIONED IN THIS ARTICLE WERE AVAILABLE AT THAT TIME, BUT MAY NO LONGER BE ON OFFER.