Compare current accounts

Standard bank accounts. These are the most straightforward current accounts. You’ll get a debit card, cheque book and access online banking or an app to help you manage your money.

If you prefer to do your banking online rather than in person or over the phone, consider choosing a bank with a slick app or website to make your banking experience as convenient and efficient as possible.

Basic bank accounts. Because pensions and other official payments are now sent directly into bank accounts, the Government said that the major account providers had to have a product anyone could open to stop people being excluded from benefits they are due.

Basic bank accounts are free, come with debit cards and no overdrafts. Providers including HSBC, NatWest, Santander, Barclays, Lloyds, Co-Operative, TSB and Nationwide offer them.

Packaged bank accounts. These are similar to standard accounts often come with a monthly fee. This is because they have extras such as, travel insurance, breakdown cover or mobile phone insurance.

While it might seem like a waste of money to be paying for an account keeping fee each month, the benefits you could receive for an account like this could be outweigh the cost of the account keeping fee.

High interest bank accounts. Some current accounts offer a higher rate of interest than standard accounts. This often depends on the size of your balance or the amount you can pay in every month.

There may be a cap on how much the bank pays interest on. If you plan on keeping large amounts of money in your account, you could also be earning a decent amount of interest for doing so.

Cashback accounts. Cashback current accounts are bank accounts that reward you with cash.

You could get cashback from paying in a set amount of money each month, or for using the account to pay your utility bills.

Bad credit accounts. These are sometimes called prepaid accounts. A bad credit account could be a good option for you if you’ve had problems getting credit in the past, or you have no credit history.

A good credit history can benefit you for years to come as you look to enter into larger, more serious credit relationships like a mortgage or car loan, so its worth the investment now to set up your credit history for the future

Student accounts. Student bank accounts are only available to full time students. To get one, you need to prove you’re a student either with an acceptance letter from your university or your UCAS offer letter.

They generally come with interest-free overdrafts and a sign-up perk, such as a railcard or Amazon Prime membership thrown in to draw people to them.

How do I choose the best current account?

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.

What are the incentives to switch bank accounts?

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.

How will my existing payments and direct debits be transferred across to my new bank account?

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.

What about overdrafts on current accounts?

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.

What are the new rules on overdraft fees?

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.

What is a monthly or annual account fee?

Some banks charge you a monthly or annual fee to have a particular account.

Not all accounts have a fee. It is 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.

What does 'most popular and ‘popularity’ mean?

When we use the term ‘most popular or ‘popularity’ on Uswitch in reference to credit cards, these cards are ranked by the number of clicks they have received on the site in the past 48 hours.

The most clicked on cards 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 cards most people think are worth getting.