Current accounts have different perks, and these ultimately benefit different people. So, to help you compare the best ones, we’ve listed our top six current accounts below.
We use our current accounts daily, from buying coffee to travelling to work. Therefore, it’s important that we properly consider the different options before choosing one.
There are many current accounts out there, with all sorts of benefits to consider. Some have good overdraft rates if you’re likely to go into the red, while others offer generous interest rates.
In this article, we cover:
- What are the best current accounts in 2024?
- The best current account switching offers
- The best current accounts for students
- Top current accounts for overdrafts
Read more: Best bank account switch offers in the UK
Our top current accounts
All providers below have all been shortlisted in the 2023 Times Money Mentor awards.
First Direct 1st Account
Best for customer service
About First Direct
One thing First Direct does well is customer service. During the Times Money Mentor awards last year it scored overwhelmingly high in this category and won “The Times readers’ favourite financial app” award to boot.
As a digital provider, which is part of the HSBC banking group, you will only be able to contact its support team via phone, app or website. This is available 24/7, meaning you won’t need to wait for regular banking hours to log any requests or pick up the phone to make a call.
The current account itself is free, comes with £250 in interest-free overdraft (subject to status), and it offers a debit card with fee-free spending abroad.
– 0% EARvariable on the first£250,39.9% EARvariablethereafter, giving a representative rate of30.5% APRvariable
Chase current account
Best for cashback
JP Morgan’s Chase is one of a fairly new breed of app-based banks, giving you all the core banking functionality through your phone.
It offers a range of excellent perks:
– 1% cashback on everyday debit card spending for your first 12 months
– Chase has a competitive linked easy-access savings account, paying interest of 3.85% AER (variable) on deposits up to £1 million
– Chase doesn’t charge fees for using your card or withdrawing cash at home or overseas
– Round-up purchases to the nearest £1 with an account paying 5% AER (variable)
Chase’s cashback offer is very competitive, allowing you to earn money on a wide range of purchases (even when spending abroad). There are exceptions – for example, you won’t earn cashback when you use your debit card to pay for estate agent fees, gambling or cars. You can earn up to £15 cashback a month – adding up to £180 in the first year.
– There is no overdraft facilitywith Chase
– Maximum cash withdrawal per day: £500
– When abroad, cash withdrawals are limited to £1,500 a month
Use any card abroad with no fees
Most banks and credit cards charge around 3% to spend abroad. Curve can make those fees disappear.Link your debit and credit cards to a Curve wallet to stop paying fees abroad no matter which card you use when travelling.
Terms apply.
Honourable mentions
While these providers weren’t shortlisted in our awards, they still offer great accounts.
Kroo current account
New app-based current account Kroo pays its customers 4.35% AER/ 4.27% gross (variable) a year on any balance held in the account, up to £85,000.
This trumps some standard easy-access savings accounts, making it a great option for savers. It pays interest on a monthly basis.
As with some of the other accounts on this list, Kroo does not charge you to make payments with your card abroad. It also won’t charge you fees on cash withdrawals abroad until 31 October, a nice bonus.
Kroo charges 24.9% APR on its overdraft, less than many overdrafts but similar to a standard credit card rate, but whether you will qualify for one depends on your credit history.
Overdraft interest rate (APR): 24.9%
The Santander Edge current account costs £3 month but you will more than make it back with the great perks:
– Open a Santander Edge current account before 7 October 2024, pay £500 in within 30 days and you’ll get £36, that’s the fees to maintain the account for a year. (Only for new current account customers. T&Cs apply)
– 1% cashback on water and energy bills, council tax, mobile phone bills, broadband/tv packages (up to £10/month)
– 1% cashback on supermarket and travel spending (up to £10/month)
– Optional savings account with6.00% AER / 5.84% gross(variable) interest on balances up to£4,000 (includes 1.50% AER / 1.49% gross (variable) bonus rate for the first 12 months from opening)
– No fees for using account abroad, including card purchases and withdrawing cash
– Option to use Santander Boosts, a way to earn personalised cashback and vouchers at selected retailers
–Overdraft representative interest rate (APR): 39.94%
You will need to pay in £500 each month, have two active direct debits and be over 18 while living permanently in the UK, to qualify for the benefits of this account.
NatWest Premium Reward account
NatWest’s Premier Reward account charges a £2 monthly fee, but has a decent cashback option. You can earn up to £10 a month as long as you meet the following criteria:
– Pay at least £1,250 a month into the account
– Have at least two monthly direct debits set up, each of £4.50 or more (this will earn you £9 in monthly rewards)
– Log into your NatWest mobile banking app at least once a month (this will earn you £1 in monthly rewards)
Don’t want to pay the monthly fee? NatWest also offers a free ‘Premier Select’ account, but you won’t benefit from the cashback options offered by the dearer Premier Reward option.
This is also a decent option if you want fee-free spending on holiday with a major bank, as you won’t be charged for non-sterling card transaction fees abroad. It just won’t apply for cash withdrawals.
In order to qualify, you’ll need to pay in £100,000 sole income or £120,000 joint income into your account. If this isn’t possible then you’ll need to have one of the following:
– Savings or investments of at least £100,000 with the high-street bank
– A mortgage of at least £500,000 with NatWest
– Overdraft interest rate (APR): 39.49% rep APR
Monzo
All you need under one app
Launched in 2015, Monzo is a digital provider that now serves more than eight million customers across the UK. This makes it the seventh largest bank in the country by customers alone.
While it does offer premium current account for its customers, its basic bank account is free and is entirely managed via the app. This is one of Monzo’s main appeals, with the app including a range of helpful tools to manage your money. For example, there’s the salary sorter tool to support your budgeting and the shared tabs feature to help you split bills with your friends and flatmates.
The basic current account comes with access to an easy access rate of 4.10% AER variable
What about e-money accounts?
While e-money accounts don’t offer the same FSCS protection as regulated bank accounts, some of these options still come with great perks. Revolut is one such example we’ve listed below.
Key perks:
– Make international payments to other Revolut accounts for free
– Get discounts on certain brands like Adidas
Revolut’s perks depend on your plan. The free account comes with the above-mentioned key perks, but if you’re prepared to pay for a monthly fee these can be enhanced.
Its Metal Plan, for example, comes with a monthly fee of £14.99 but comes with a range of perks such as a standard Financial Times subscription, Deliveroo Silver, and Tinder Gold. You also can earn one Revpoint – the providers reward currency – for every £2 spent. However, it’s unclear how valuable these points are.
If you upgrade to its most expensive account, which costs £540 a year with an introductory offer, you’ll earn an eSIM with 3GB of global data to use in over 100 countries, all the benefits in the Metal Plan, unlimited airport lounge access, and cancellation cover for trains trips and other transportation types. You’ll also earn one Revpoint for every pound spent on your card.
What is a current account?
A current account is designed to manage your day-to-day personal finances. This includes receiving an income, like a pension or salary, and spending your money, such as paying bills.
Typically, a current account comes with a debit card. You can then use the debit card to pay for items and to withdraw cash. These days, you can also monitor and manage your current account using an app or online banking.
It’s worth noting that all regulated banks and building societies offer accounts which are protected by the FSCS. This means if your provider goes bust, this scheme will reimburse up to £85,000 of your money.
It’s this protection which differentiates bank accounts from e-wallets, or e-money accounts. Offered by the likes of Revolut and Tide, e-money alternatives offer an online place to store and send your money. The providers are regulated differently by the FCA, the country’s financial watchdog, and if they were to fail then recovering your money isn’t guaranteed.
Read more: Is a joint account ever a good idea?
How do I open a current account?
After choosing which bank account you would like to get a current account with, you need to make sure that you qualify for the account. For example, most banks require you to be over 18.
Next, banks will require ID to prove your identity and address, such as a full UK passport or UK driving licence.
You may also be required to pay set fees when you open a current account. If you aren’t required to do this, it’s important to be aware that you might have to pay for individual things like accessing rewards, sending money abroad, and using an overdraft.
What are the best bank accounts for saving?
While you could keep your savings and current account separate, some providers allow you to keep your money in one place with a high interest current account.
Our guide explains in more detail how it works, and whether it’s worth getting one. But we’ve listed the top paying rates for these products below.
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
 | FlexDirect Account | 5.00% | £0 / £1,500 | Branch / CashCard / MobileBanking / Online / Telephone | |
 | Kroo Current Account | 4.10% | £1 / £85,000 | MobileBanking / Mobile | |
 | Santander Edge Up * | 3.50% | £1 / £25,000 | Branch / CashCard / MobileBanking / Online / Telephone | More info |
 | Current Account | 3.25% | £0 / £5,000 | CashCard / MobileBanking / Online | |
 | Club Lloyds Current Account | 3.00% | £4,000 / £5,000 | Branch / CashCard / MobileBanking / Online / Telephone |
Powered by data from Savings Champion
It’s worth comparing these accounts to other savings rates on the market, so we’ve rounded up some of the best savings accounts in our guide. You can also look at our guide to the best fixed-rate savings accounts.
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Best current account switching offers
Banks have various different switching offers with incentives such as cash, as well as rewards like subscriptions and cinema tickets.
On top of that, there’s the all-important interest rate, as well as other considerations like whether you’ll have to pay interest if you go into an overdraft.
We’ve rounded up some of the best switching offers for you to consider.
What are the best bank accounts for students?
Student accounts are just like current accounts, but they tend to come with perks that are particularly well-suited for students. Find our list of some of the best bank accounts for students for guidance.
The perks can include all sorts of things that could help a student, such as an interest-free overdraft facility, cash, as well as discounts on things like food and travel, and railcards.
Best bank accounts for overdrafts
If you feel as though you might go into an overdraft, it’s important to have a bank account that lets you borrow money in the short term without a heavy penalty.
There are a variety of banks to choose from. These accounts offer an interest-free overdraft for a set period or balance.
To help you choose a bank account with an overdraft facility, read our guide of the best bank accounts for overdrafts.
What are the top 5 banks in the UK?
Every six months, IPSOS, a research organisation, publishes a report on the most popular banks among customers. Its latest report, which was released in February, puts challenger bank Monzo at the top of the chart for “overall service quality”.
As illustrated in the chart below, eight out of ten people it surveyed said it would recommend Monzo’s personal current account to their friends and family. Other banks to rank highly in this table include Starling Bank and HSBC-owned First Direct.
FAQs
How many current accounts can I have?
There’s no limit to the number of current accounts you can hold.
Can you have two current accounts with the same bank?
This question depends on the bank and type of account, but generally speaking, you can open more than one current account with the same bank.
Should I keep all my money in my current account?
If you are a victim of a scam, you won’t want all of your money to be in just one account. Therefore it’s wise to keep another account like a savings account to keep your other money safe.
How do I open a bank account in someone else’s name?
You can only open an account in your own name unless you hold Power of Attorney, have been legally appointed to act on behalf of someone else, or are a parent or guardian opening one on behalf of a child.
However, you can easily open a joint account with another person.
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
