Looking for a bank account with a better overdraft rate, higher interest, cashback or other benefits? We compare different factors, which will help you decide on the best current account for your needs, from 4 banks, including high street banks and new challenger banks.
A current account is a type of bank account. It‘s usually the bank account you use for most of your transactions and the one you get your salary paid into. Think of the word 'current' as being the account you most currently use.
Current accounts usually come with a debit card and a chequebook.
You can get unlimited access to your money without paying a penalty. Withdrawing cash will not stop you from getting any benefits associated with the account.
Some current accounts are better than others. But it will be difficult to say one is the best definitively, which are the best bank accounts over the other. This is because how you choose your bank account largely depends on your own financial circumstances.
You can use a comparison tool like the one above to compare current accounts.
Different accounts offer different perks. For example cashback, free overdrafts, rewards or high interest.
Think about how you’ll use your current account, and whether your bank offers you the best deal. If not, consider switching bank accounts to make the most of the deals on offer.
There are a number of different bank accounts. These include:
The best current account is the bank account that offers the perks or deals that suit your lifestyle.
If you often dip into the red, you might want to compare bank accounts that offer fee-free overdrafts. New legislation means arranged and unarranged overdrafts are practically the same thing now, but banks have started to charge up to 40% interest on your debt.
If you have a large bank balance of around £2,000 or more, and are always in credit, you might consider looking for an account that will pay you the most interest.
To check your balance while you’re on the move, an online bank account or banking app could be a good option.
You can start your application for a new current account with our comparison table. Most banks allow you to apply online.
If you’ve already chosen the bank you want, you could go to in person to a branch, apply by post or over the phone.
You need to be at least 18 and living in the UK to apply for a current account. If you’re not yet 18, you could get an easy access children’s savings account.
When I apply for a current account via the comparison tool, what happens?
When you press the apply button on our site, you’ll be directed to the bank’s website. You’ll find out more details there including full terms and conditions.
You don't have to go ahead with an application if you decide the account is the one for you.
You should not need to pass a credit check to get a current account.
Banks sometimes offer perks or incentives to encourage you switch your current account to them.
These could be in the form of a cash bonus, vouchers or an item like new headphones.
You may have to stay with the bank for a set amount of time to qualify for and keep the bonus.
You’ll probably have to get your salary paid into the account and set up 1 or more standing orders or direct debits. It used to be a complicated and time-consuming process to change banks but technology has now made the process much easier.
Use a comparison table, like the one above, for more deals.
The Current Account Switch Guarantee means that your new bank takes care of everything. They will close your old account, move your balance and switch over any direct debits or standing orders. The guarantee covers most UK banks.
The process should be:
Under the Switch Guarantee, your new bank should cover fees or charges you might incur as a result of the switch. For example, a missed payment.
Your old bank should redirect any payments or request for payments to your new bank for up to 3 years after you’ve switched.
Some accounts allow you an interest free overdraft. This translates to letting you borrow a set amount of money for free. Not all accounts do this.
The interest free amount is often less than the full overdraft limit. Be careful not to confuse the two.
For example, you may have an agreed interest free overdraft of £250. But your full overdraft limit might be £1,000. You would owe interest on anything in your overdraft between £250.01 and £1,000.
The rules on overdrafts changed in April 2020.
Under new government rules banks are no longer be able to charge high fees to customers who drop into their overdraft. This applies to both arranged and unarranged overdrafts.
Banks can now only charge overdraft users a simple annual interest rate.
It's important to speak to your bank or building society if you are unsure about your overdraft fees.
Some banks charge you a monthly or annual fee to have a particular account.
Not all accounts have a fee. It’s usually the accounts with exclusives perks or cashback that charge this fee.
Do not let fees put you off. Consider whether you’re going to use the account to take full advantage of the perks or cashback. You could end up saving more money than the fees cost you.
When we use the term ‘most popular’ on Uswitch in reference to current accounts, these accounts are ranked by the number of clicks they have received on the site in the past 48 hours.
The most clicked on accounts are at the top, with the least at the bottom. This reflects how popular they are with visitors to Uswitch.com. Consequently this is a good table to look at if you’re interested in seeing which current accounts most people think are worth getting.