If you’re searching for a new bank account that offers a particular benefit such as cashback or insurance, there are plenty of options to choose from.
This guide will give you an overview of the best current accounts at present, depending on your needs. Providers sometimes offer generous cash incentives for switching accounts, so we’ll keep you updated with any offers. Find out more about the different types of bank accounts and how to switch in our article Should I switch my bank account?
Current best buys, according to financial analyst Moneyfacts.co.uk, are as follows:
Best bank accounts
The right current account for you will depend on how you manage your money. For example, you might be lucky enough to always be in the black, or you may spend most of the month relying on your overdraft to make ends meet. The list below highlights the best accounts based on a range of different requirements.
Best if you want cashback:
Santander Edge
Santander has replaced its 123 Lite account with its Edge current account, which comes with a £3 monthly fee. It pays 1% cashback on household bills (water, council tax, energy, broadband and TV packages. Customers also receive 1% cashback on supermarket and travel spending (including petrol, electric vehicle charging, train and ferry fares). It also comes with a linked savings account paying 7% on balances up to £4,000. The debit card is fee-free for overseas spending and ATM withdrawals.
Find out more at: Santander
Chase
Customers opening the Chase current account will qualify for unlimited 1% cashback (max £15 per month) on debit card spending for a year. The amount of cashback you receive will then be capped at £15 per month and you’ll need to pay in £500 per month to receive it. You can also get a linked 4.1% savings account and a debit card that’s fee-free for overseas spending.
Find out more at: Chase
Best for overdrafts: First Direct 1st account
Customers benefit from a £250 interest-free overdraft, but beware the rate rockets to 39.9% EAR above this amount (the same as for unarranged overdrafts). This makes it a good choice for those who tend to dip a little into the red each month, but don’t need a large overdraft facility. Alternatively, app-based Starling bank account charges lower than average overdraft rates, at 15% to 35% EAR variable, depending on your credit history. There are no additional charges for unarranged overdrafts. The First Direct account also comes with a £175 switching incentive and access to a Regular Saver account paying 7% before tax (find out more about this account below).
Find out more at: First Direct
Best for regular savers: First Direct
If you have a current account with First Direct, you can open a Club Lloyds Monthly Saver. This account pays 7% fixed for 12 months, and allows you to save between £25 and £300 every month. This account could be a good way to get into the savings habit, and build a rainy day cash fund.
Find out more: Lloyds
The Co-operative Bank
The Regular Saver Issue 1 account is only available to Co-operative Bank customers, and pays a competitive 7% annual interest on savings up to £250 a month. You can make withdrawals from this account if you want to, and interest will be paid at the end of the 12-month account term.
Find out more: The Co-operative Bank
Best app-based account for savers: Kroo current account
If you’re after a smaller, app-based bank because you like managing your money on the go, challenger bank Kroo’s current account offers a whopping 4.35% AER on balances up to £85,000 from 1 August.
If you’re comfortable accessing your account on your smartphone, Kroo’s current account comes with plenty of useful features. Within the Kroo app you can view categorised spending insights to see how you’re spending money, track and settle up shared expenses and easily freeze your card if you need. You can withdraw up to £200 every 30 days without paying any fees, but for any withdrawals over £200 within 30 days, you’ll be charged 3%. You can also use your Kroo current account abroad with zero fees.
Kroo is a relatively new bank, having only received its full banking licence last year, but says that it’s a bank to change banking. They promise to plant two trees for every new customer and have a goal of planting 1m trees by the end of the year.
Find out more at: Kroo
Best packaged bank account: Virgin Money Club M
You can get more than £500 worth of cover for all your family phones, gadgets and worldwide family travel insurance (up to age 75) for £150 a year. This account also comes with UK breakdown cover included.
Find out more at: Virgin
Current accounts paying switching incentives
Incentives offered to customers switching current accounts will often be a cash bonus of hundreds of pounds. Although these disappeared recently, they are gradually starting to return, so even if there aren’t any offers around when you want to move, it might be worth waiting a week or two to see if they come back.
Here are some of the switching incentives that are currently available.
Barclays £175 plus benefits including access to 5.12% regular saver
Barclays doesn’t regularly offer switching bonuses, so if you’ve been wanting to move your current account across to the bank, now might be the time to do so.
As well as £175 cash when you switch, you’ll be able to benefit from other perks such as Apple TV+, and the option to pay into Barclays Regular Saver account which pays 5.12% annual interest before tax.
You’ll need to download the Barclays App and switch your current account to a Barclays Bank Account and joins its Blue Rewards scheme for £5 a month, or open a sole Premier Current Account from another bank. You must also move at least two active Direct Debits across and pay £800 into the account. The offer is only open to new customers who’ve opened a Barclays Bank Account or Premier Current Account between 8 July and 30 August.
Find out more at: Barclays
Co-operative Bank £160 cashback
New and existing customers with The Co-operative Bank could earn up to £160 in switching incentives for moving their current account.
New customers will receive a £100 lump sum payment when they complete a full switch from another bank to the Bank’s Everyday Extra current account using the current account switching service. Bear in mind, however, that the Everyday Extra account is a packaged account which has a £15 monthly fee. In return for this you get a package of extras including mobile phone insurance, worldwide travel insurance, and UK & European breakdown cover.
Once you’ve switched you can earn an additional £60 by regularly using your Everyday Extra account. To qualify for this part of the incentive, which is paid out in £10 instalments for the first six months, you must have two active direct debits or standing orders in place and make five debit card transactions by the 20th day of each qualifying calendar month.
Find out more at: The Co-operative Bank
TSB £100 plus £60 cashback and reward if you stay until April 2025
If you switch to the TSB current account, log into the TSB Mobile Banking App and make a minimum of 5 payments using the debit card on your new account in the first month, you’ll receive a £100 bonus. To qualify for an additional £15 a month cashback which is payable for six months, you must make at least 20 debit card payments each calendar month. Finally, if you make 20 debit card payments in March 2025, you can choose from one of the following rewards in April 2025:
1) A night away for two at a choice of hotels
2) 2 Odeon cinema tickets each month for 3 months (6 tickets in total)
3) NOW Entertainment Membership for 6 months
Find out more at: TSB Bank
We will update this article with any future deals, so keep an eye out. If you’re thinking of leaving your current bank, don’t ditch it simply for a switching incentive. Ensure that you’re happy with your potential new bank’s customer service reviews, overdraft facilities and interest rates, and these will make a bigger long-term difference over the long-term to your finances than a one-off incentive for switching.
Rates and offers correct as at 07.08.24
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