Get the best current account for you

 All of us use our current accounts in different ways, so the best account for you might be the worst for someone else.

Man using his current account card in a restaurant

Compare current accounts

Start a search

Here’s our rundown of the best accounts to suit your requirements – whatever they may be.

Best for interest on balances of over £3,000
Best for interest on balances of between £2,000 and £3,000
Best for overdrafts
Best for cash rewards

Best for interest on balances of over £3,000

• Santander 123 current account

• Lloyds Bank Club Lloyds current account

If you’re lucky enough to keep several thousand pounds in your current account, it makes sense to switch to an account that pays decent returns on large balances.

Santander’s 123 current account pays 3.00% AER (variable) on balances between £3,000 and £20,000.

You’ll also earn 1.00% AER (variable) on balances above £1,000 and 2.00% AER (variable) on balances above £2,000. Plus you’ll earn cashback of between 1.00% and 3.00% on some of your household bills.

To qualify, you’ll need to pay in at least £500 a month and have at least two active direct debits on the account, as well as pay a £5 monthly fee.

Another option is the Lloyds Bank Club Lloyds Current Account, which pays 4.00% AER (variable) on balances between £4,000 and £5,000.

If your balance is smaller, you’ll earn 1.00% AER (variable) on balances between £1 and £1,999.99 and 2.00% AER (variable) on balances between £2,000 and £3,999.99.

There’s a £5 monthly fee, but this is waived if you pay £1,500 or more into your account each month. You'll also need to have at least two direct debits on the account.

Best for interest on balances of between £2,000 and £3,000

• TSB Classic Plus current account

• Nationwide FlexDirect current account

If you tend to keep between £2,000 and £3,000 in your account, here are the best options for you:

TSB’s Classic Plus current account pays 5.00% AER (variable) on balances of up to £2,000. You must pay in £500 a month and sign up for paperless billing to be eligible.

You'll also get £100 if you switch to the TSB account through MoneySuperMarket using the Current Account Switch Service. To qualify, you need to open your account by February 8 and switch by March 4. You also need to have at least two direct debits on the account and pay in at least £500 within 28 days of switching.

Nationwide’s FlexDirect current account also pays 5.00% AER fixed for 12 months on balances of up to a higher £2,500. But after 12 months, the rate falls to 1.00% AER (variable). You must pay in at least £1,000 each month to qualify.

Best for overdrafts

• First Direct 1st Account

• Nationwide FlexDirect current account

• Clydesdale and Yorkshire Bank Current Account Direct

If you only tend to dip into the red by a small amount every so often, First Direct’s 1st Account offers a £250 interest-free overdraft.

However, you’ll be charged 15.9% EAR (variable) on arranged overdrafts over this amount.

You’ll also get £150 cashback if you switch to this account through MoneySuperMarket using the Current Account Switch Service. (You must pay in at least £1,000 a month within three months of opening your account. T&Cs apply.)

Nationwide’s FlexDirect account is a better option if you often go overdrawn by more than £250, as it offers a fee-free overdraft for 12 months.

You’ll have to pay off your overdraft in the first year though, or you’ll be hit by a daily usage fee of 50p on arranged overdrafts of £10 or more.

Clydesdale and Yorkshire Bank’s Current Account Direct offers a competitive overdraft rate of 9.9% EAR (variable). However, be aware you'll have to pay a £6 fee every month you're more than £25 in the red. So this won't be suitable if you're frequently overdrawn.

You'll earn £150 for switching to these accounts – you must use the Current Account Switch Service to switch, pay in at least £1,000 a month and have at least two direct debits on the account.

All overdrafts are subject to status and approval.

If you’re after a tasty cash bonus when you switch current account then you’re spoilt for choice

Best for cash rewards

• Clydesdale and Yorkshire Bank Current Account Direct

• First Direct 1st Account

• HSBC Advance Bank Account

• M&S Current Account

If you’re after a tasty cash bonus when you switch current account then you’re spoilt for choice.

Clydesdale and Yorkshire Bank pays you a £150 cash bonus when you switch to the Current Account Direct (and have two direct debits on the account), and you’ll also earn 2.00% AER (variable) when you’re in credit on balances up to £3,000.

You must pay at least £1,000 a month into this account.

First Direct also pays you £150 if you switch to its current account through MoneySuperMarket using the Current Account Switch Service. (You must pay in at least £1,000 a month within three months of opening your account. T&Cs apply.)

Although the First Direct account doesn’t pay you any interest when you’re in credit, the bank is renowned for its excellent customer service, which may be more important to you.

You'll also have access to its regular saver account paying 6.00% AER gross fixed for 12 months.

HSBC, meanwhile, offers £120 if you switch to its Advance Bank Account using the Current Account Switch Service within 30 days of opening your account. You'll need to apply before February 28.

The account also gives you access to a regular saver account paying 6.00% AER gross fixed for 12 months. But be warned, to qualify for the current account, you need to pay in at least £1,750 a month (or £10,500 or more every six months).

If you're a keen M&S shopper, M&S Bank offers a £100 M&S gift card if you switch to its current account using the Current Account Switch Service and have at least two direct debits on the account. Your card will also be topped up with £10 each month you pay at least £1,000 into your account and two direct debits remain active, for 12 months. T&Cs apply.

You'll also be able to earn M&S loyalty points on your debit card and have access to a regular saver account paying 6.00% AER gross fixed for 12 months.

Remember though that there’s little point switching current accounts on the basis of a cash bonus or other reward if the account isn’t going to be suitable for your needs over the long-term.

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

Did you enjoy that? Why not share this article

SAVE MONEY NOW

Other articles you might like

Popular guides