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:
First Direct £175 plus access to £250 0% overdraft and 7% regular saver account
First Direct is offering £175 to current account switchers,, and most will also receive a £250 overdraft at 0%. You can also benefit from a 7% regular saver for one year if you put away £300 per month. If you saved the maximum amount, you’d receive £136 in interest. You’ll need to switch with two direct debits and pay a total of £1,000 per month into the account within 30 days, and log into the digital banking service.
Find out more at: First Direct
Nationwide Building Society £175 cashback
Nationwide Building Society is also offering a £175 cash bonus for current account switchers moving to either its FlexAccount, FlexDirect account or FlexPlus account. To qualify for the bonus, you’ll need to switch a non-Nationwide bank account with at least two active Direct Debits to the building society. You’ll need to make the switch online, and close your non-Nationwide bank account when you move. The switch will need to be completed within 28 days, and within 31 days of requesting it, you’ll need to put at least £1,000 into the account and pay for something once using your debit card. The £175 should be paid within 10 days of meeting all these criteria.
If you’re switching to the FlexDirect account, this offers 5% AER interest on current account balances up to £1,500 for a year, as well as 1% cashback for 12 months, up to a maximum of £5 month.
Find out more at: Nationwide
Co-operative Bank £150 cashback
New and existing customers with The Co-operative Bank could earn up to £150 in switching incentives for moving their current account.
New customers will receive a £75 lump sum payment when they complete a full switch from another bank to the Bank’s standard current account Everyday Extra current account using the current account switching service. Bear in mind, 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.
You’ll only get the £75 if you do the following by the 30th day after your switch completes:
- deposit £1,000 or more
- have two or more active Direct Debits
- make ten or more card or digital wallet transactions
- register for Co-op’s online banking services or mobile app
- set up the debit card in a digital wallet (Apple Pay, Samsung Wallet or Google Pay).
To qualify for the additional £75, which is paid in three £25 monthly instalments, you need to actively use your current account each month by depositing £1000 or more, making ten or more card or digital wallet transactions and having two or more active Direct Debits.
Find out more at: The Co-operative Bank
Lloyds Bank £200 cashback
Lloyds Bank is offering £200 cashback to customers who switch an account held with another bank to a new Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum Account. You can also choose a reward: 12 months’ Disney+ (with ads), six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine.
To qualify, you’ll need to use the Current Account Switch Service to transfer a minimum of three active direct debits and close your current account held with another bank. You won’t be eligible for the £200 if you’ve received an incentive for switching to a Lloyds Bank account or Halifax current account since April 2020. Bear in mind some of these accounts have a monthly fee, so make sure the benefits offered will be useful to you before you sign up. may need to pay a monthly fee for the account. This offer ends on 10 December 2024.
Find out more at: Lloyds Bank
NatWest £180 cashback
Switch your current account to the NatWest Reward account and you’ll pocket a £180 cash bonus, plus £5 a month in cashback and access to a 6.17% AER interest linked regular saver account.
However, bear in mind that the NatWest Reward account has a £2 monthly fee, so once this is deducted from the £5 monthly cashback you end up with £3 a month. The monthly cashback is payable when you pay in at least £1,250 a month and have at least two Direct Debits set up. You must also log into NatWest’s mobile banking app each month.
To qualify for the £180 cashback, you’ll need to complete a full switch from a non-NatWest, RBS or Ulster Bank account online or via the mobile app. You’ll then need to pay in at least £1,250 within 60 days of the switch and log in to the mobile banking app. You must also have at least two Direct Debits set up as part of the conditions of the Reward account). The £180 should paid within seven days of meeting these criteria.
Find out more at: NatWest
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 29.10.24
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