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 Up

Santander has replaced its 123 Lite account with its Edge Up current account, which comes with a £5 monthly fee. It pays 1% cashback on household bills (water, council tax, energy, broadband and TV packages, capped at £15 a month). 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 3.5% on balances up to £25,000. This gives you a maximum of about £875 interest a year (before factoring the £5 a month fee). The account’s debit card will also be fee-free to use abroad.

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 3.1% 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 receive 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 at: First Direct

Best for regular savers: Lloyds

If you have a current account with Lloyds, you can open a Club Lloyds Monthly Saver. This account pays 6.25% fixed for 12 months, and allows you to save between £25 and £400 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

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. However, at present few providers are offering cash incentives to switch accounts. 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.

NatWest and RBS £200 plus up to £36 a year cashback

In addition to £200 cash for switching to the current account, NatWest Reward and RBS Reward give £3 every month you use the app and pay out at least two direct debits (after a £2 monthly fee). Alternatively, you can simply opt for the £200 if you switch to the fee-free account. You can also get a linked regular savings account paying 6.17% and pay in up to £150 a month.

Find out more at: NatWest and RBS

Lloyds £175 plus a reward

Current account customers who switch to a Club Lloyds account by 28 March can benefit from £175 cash and choose a reward from the following: 12 months’ Disney+(with ads), six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine. However, there’s a £3/month fee unless you pay in £2,000+ a month. You also get access to a linked regular saver paying 6.25% fixed interest on up to £400 a month in savings.

Find out more at: Lloyds

Rates and offers correct as at 16.02.2023

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