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Compare current accounts

Get a current account that's right for you

Whether you’re looking to earn a high interest rate, cash back on your spending, or add-on benefits we can help you find the best current account for you.

Compare current accounts

We compare current accounts from leading providers
Last updated
July 12, 2023

Current account deals

15 results found, sorted by switching incentive.
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Uswitch Limited is a credit broker, not a lender, for consumer credit.
Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

How do current accounts work?

A current account is where your money lives before heading somewhere else. It's where your salary or government benefits are generally deposited, and where bills are paid from.

Most current accounts don't charge you a fee, unless they come with linked benefits - such as an attached savings account - or add-on benefits like travel and mobile phone insurance.

Most providers offer several different types of currents accounts so that people can chose the features and benefits that suit their circumstances.

Adults in the UK have a right to a free current account - with the government forcing the nine largest current account providers to offer to people no matter how bad their credit scores. However, these basic bank accounts come without overdrafts and almost no extra features.

Types of current accounts

Basic bank accounts

Many people who have poor credit histories, or don't have a consistent home address, have historically been unable to open regular bank accounts.

But because pensions and other public benefits are now sent directly into bank accounts, the government instituted rules requiring major banks to offer a product anyone could open to stop people from being excluded from benefits they are due.

Basic bank accounts come with debit cards and let you carry out basic everyday transactions, but offer no other features such as overdrafts or interest on your balance.

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 a university or your UCAS offer letter.

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

Cashback accounts

Cashback current accounts are bank accounts that reward you with cash on your spending. You could get cashback from paying in a set amount of money each month, or for using the account to pay your utility bills.

Sometimes they may charge a fee, so in that case they only make sense if the amount of cashback you earn is more than the fee you pay for the account.

High interest current 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 of the balance the bank pays interest on. For example the account may pay interest on balances up to £1,500. So if you have £2,000 in your accounts, you'll only earn interest on £1,500 of that.

Packaged bank accounts

These are accounts that often come with a monthly fee. This is because they offer extra benefits 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.

But make sure you don't already have insurance policies that you're paying for.

Types of current accounts

Basic bank accounts

Many people who have poor credit histories, or don't have a consistent home address, have historically been unable to open regular bank accounts.

But because pensions and other public benefits are now sent directly into bank accounts, the government instituted rules requiring major banks to offer a product anyone could open to stop people from being excluded from benefits they are due.

Basic bank accounts come with debit cards and let you carry out basic everyday transactions, but offer no other features such as overdrafts or interest on your balance.

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 a university or your UCAS offer letter.

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

Cashback accounts

Cashback current accounts are bank accounts that reward you with cash on your spending. You could get cashback from paying in a set amount of money each month, or for using the account to pay your utility bills.

Sometimes they may charge a fee, so in that case they only make sense if the amount of cashback you earn is more than the fee you pay for the account.

High interest current 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 of the balance the bank pays interest on. For example the account may pay interest on balances up to £1,500. So if you have £2,000 in your accounts, you'll only earn interest on £1,500 of that.

Packaged bank accounts

These are accounts that often come with a monthly fee. This is because they offer extra benefits 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.

But make sure you don't already have insurance policies that you're paying for.

Best banks for customer service
How the leading UK banks rate for customer service, according to their customers.

Source: UK Bank customer service rankings, February 2023 results

Customers with personal current accounts were asked how likely they would be to recommend their provider, their provider’s online and mobile banking services, services in branches and overdraft services to friends and family.

How to switch your current account

Switching bank accounts is simple, especially with the Current Account Switch Service (CASS).

But before you switch, think about why you want to switch. Is it because you're unhappy with your current provider? Are you looking for specific features? Or are trying to take advantage of a switch incentive that's on offer.

All of these questions will help you chose the provider and type of account you want to switch to. So when looking for your next account, it's a good idea to compare current accounts available the market and any incentives or feature that are on offer.

Once you've chose a deal you like, go ahead and apply. You'll need to supply some basic ID and contact documents, after that your new bank will then start the process of switching your account.

The best part is the CASS guarantees that your balance, direct debits and standing orders will be transferred to your new account. And if anything goes wrong in the process, you'll be refunded for any losses.

Make sure not to close your old account until your new one is set up to your satisfaction.

How overdrafts work

When you take out more money from your bank account than you have in it, you're "overdrawing" on your account, or "going into your overdraft". It's form of short term borrowing, and you are charged interest on the amount you borrow on a daily basis.

Interest rates on overdrafts are typically high, ranging from 19% up to 40%. This is why it might be ok to overdraw occasionally, but it's not something you should get into the habit of. If you find yourself going into your overdraft regularly, you're likely spending more than you have coming in, and it would be a good idea to do find ways to cut down on your spending.

% Brits using an overdraft[1]
30%

Jargon buster

Account number

The account number is the number that identifies your bank account. Typically, it's eight digits long, and unique to your account. If you have several accounts, each account will have its own account number. 

You'll mostly use it, along with your sort code, when carrying out a bank transfer.

Contactless payments

Contactless technology allows you to pay for goods and services using your debit or credit card without using your PIN. You can pay for transactions of up to £100 using contactless.

Direct Debit

This is typically a regular scheduled payment taken from your account by an external party with your permission. While the date is typically fixed, the amount can vary.  

Examples of Direct Debits include your monthly council tax payment, internet bill, phone bill, or even credit card payment.

IBAN

IBAN stands for international bank account number. This number identifies your account, the bank it's in, the branch it belongs to and the country where the bank is. It's part of a global system that ensures international money transfers end up in the account they were intended for. 

You can typically find the IBAN for your account on your monthly bank statement, or in your online banking or banking app.

Sort code

A sort code is a six digit number that identifies your bank and usually required when making payments by bank transfer.

Standing order

Standing orders are scheduled payments for which the amount and date of payment are fixed. They are typically used for expenses, such as bills and rent. 

Payments by standing orders can usually only take place on weekdays. If the scheduled date falls on a weekend, it'll go through on the next working day.

FAQs

Do I have to pay for a current account?

You don't have to. Most providers typically offer standard accounts which you don't pay a fee for. They offer you basic services such as a debit card, cheques, and the ability to set up direct debits and standing orders.

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 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 one or more standing orders or direct debits.

Are there any penalties for switching current accounts?

No. In fact, even if you're a regular or 'serial' switcher, it should have no impact on your finances or your chances of being accepted by a new bank or building society.

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. Recent 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.

Or if don't mind paying a fee for your account, you could opt for packaged account that may offer add-on benefits such as travel insurance, mobile phone insurance, or breakdown cover. But it only makes sense if that saves you money.

Can you get a current account with bad credit?

Yes. If you have bad credit, you should still be able to get a basic current account. The UK government has instituted rules requiring all major banks and account providers to offer products that anyone would be eligible for, regardless of their credit score or financial circumstances.

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 does 'most popular' mean?

Bank accounts in our tables can be ranked by popularity, which we have judged according to how many clicks they got over the past 30 days. Those with the most clicks are at the top of the table, and those with the least at the bottom.

However, the most popular account might not be the account for you. You should still take time to filter and search all the accounts listed to see if there’s one that better fits your needs.

Current account guides

Find out more about how current accounts work with our in-depth guides
How to Easily Switch your Current Account
How to Easily Switch your Current Account
Are there any risks in opening a joint account?
Are there any risks in opening a joint account?
Online Banking Explained
Online Banking Explained

About the author

Salman Haqqi
Salman Haqqi has over a decade of experience as a journalist in several countries around the world. In recent years, he has turned his focus to helping people make confident financial decisions and regularly comments in the media about personal finance.

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References

1. Yougov Based on data from July 2022