Bank and e-money accounts have different overdraft rates and some pay interest on your balance. Use the filters to choose account types and brands, and table headings to sort your results on what matters most to you.
Table: Current & other accounts, promoted deals first.
A current account is a bank account that gives you instant access to your money and that you can use for your day-to-day financial life. It lets you receive your salary, pay your bills, make purchases, and send and receive payments; many accounts offer all this for free. You’ll get an account number, a sort code, a debit card and usually an internet banking service, mobile app or both. Typically, you won’t get a great interest rate on money you’ve deposited in a current account, but most offer an overdraft (which will cost you in interest charges).
While accounts’ basic functions are similar, there are some key differences when it comes to interest rates, customer service, online and app features and, of course, switching incentives like free money. One major difference is that some accounts are protected by the Financial Services Compensation Scheme (FSCS), and some aren’t. The FSCS protects deposits up to £85,000 in your account if you bank goes bust.
Current account jargon explained
Funding requirement. Some accounts require you to pay in a certain amount regularly – for example, every month – to qualify for perks, or even to be eligible for the account. It’s a way of ensuring you pay in your salary. AER. Annual equivalent rate. This is a way of showing the interest you’d earn in a year on money you deposited into an account, and helps you to compare accounts. EAR. Equivalent annual rate. This is the interest rate that applies when you borrow money – when you use your arranged overdraft, for example. It shows the interest you would be charged over a year if your account were to remain overdrawn. Arranged overdraft. If your account goes into the red, the bank will charge you a set EAR. Before you go overdrawn, you need to arrange this facility with your bank.
How to compare current accounts
The best current account for a school leaver in their first job may not the best one for a frequent traveller with complex financial needs, so you’ll have to figure out which banking features are the most important to you.
Here’s our checklist for how to find the right current account for you.
Check the ways you can bank. Do you need an extensive branch network that you can visit in person, or are you happy to manage all of your finances online or on a mobile app? And if your bank doesn’t have branches, can you still access customer support at a time that suits you?
Check the features. Some current accounts offer fairly basic features, which is fine if you just need your salary to be paid in and your bills to be paid out. But if you’re looking for a slick mobile app, spending categorisation and budgeting tools, or the ability to arrange an overdraft easily, you’ll need to make sure the account offers all that. You might also decide you want an account with FSCS protection, and many accounts in our table offer this.
Check the fees and costs. With free current accounts (all major high street and digital banks offer these), there can still be charges for certain types of transaction, such as using your card overseas, or even paying cash into your account if you’re with a mobile-only bank. If you’ll need an overdraft, confirm what interest rate you’ll pay.
Check if a “packaged” or “premium” account would be better value. Some accounts charge a monthly fee in return for a “package” of extra benefits such as mobile phone and travel insurance, breakdown cover or cashback on your bills. These are only worth getting if you would use the benefits and have checked standalone policies wouldn’t be better value for you.
Is there a joining or switching incentive? Banks are vying for customers and they often have tasty offers on the table to get you to sign up, or to switch your current account from your existing provider. The most popular incentive is (unsurprisingly) a cash lump sum, so if you’re considering a new current account anyway, you might be able to make a bit of money from it too. But factor the rest of the checklist points into your decision, particularly if you’ll need an overdraft.
Current switching deals
Below we have listed the latest switching deals on the market. This list is checked regularly and was last updated on 13 November 2024.
first direct – 1st account – Get up to £175
Santander – Everyday, Edge or Edge Up account – Get up to £150
Nationwide – FlexDirect, FlexPlus and FlexAccount – Get up to £175
The Cooperative Bank – Standard Current Account – Get up to £150
Lloyds – Club LLoyds, Club Lloyds Silver or Club LLoyds Platinum accounts – Get up to £200
If you’ve had your current account for years, the idea of switching may sound daunting – many people stick with bad deals just to avoid the hassle. However, the process is in truth quite simple thanks to the Current Account Switch Service (CASS).
Any banks signed up to CASS will switch over your account for you in seven working days. You don’t need to do anything, except pick out your new current account and decide on a switch date. Here’s how it works:
Your balance and recurring payments are automatically transferred to your new account. This includes both direct debits and standing orders.
Your old account is closed. Your transaction history will not be transferred to your new account, so it’s a good idea to make sure you’ve got all your bank statements first.
Incoming payments to your old account will be redirected. A message with your new bank details is also automatically sent to the payer.
Depending on what your new bank is offering at the time, switching through CASS may also allow you to access switching bonuses and rewards. Most current account switches are done online but there are still a few banks that aren’t part of CASS, like Chase.
Have you thought about a mobile-only bank?
Digital banks and banking apps like Monzo, Starling. or Revolut have stolen the headlines in fintech for the last few years. In the Finder office we’re big fans – here’s why:
Cool features. The best thing about them. Digital banks are constantly evolving and adding interesting features. The whole experience feels more user-centred and it’s easier to keep an eye on your spending, make budgets, and personalise the whole thing too.
Easy to set up. You just download the app, enter your data and confirm your identity. It usually takes less than 10 minutes.
No fees. This usually also applies to spending abroad.
Types of current accounts
Apart from standard current accounts that prioritise one feature or another, there are also dedicated types of current accounts to suit other specific needs:
Joint current accounts. Most current accounts can be opened together with another person (your partner, another member of your family, a friend). Just be aware that this creates a financial association between the two of you, which may potentially impact your credit score. Learn more on joint accounts here.
Bad credit. Most banks perform a credit check when you apply for a current account. If your credit score is less than ideal, you may still be offered an account, but you may not get an overdraft. Learn more on current accounts for people with bad credit.
Student accounts. If you’re a student, you can bag great perks and rewards and a fee-free overdraft with a student current account.
Children accounts. In order to be eligible for an adult current account, you usually need to be 16 or 18. However, children current accounts are available to kids as young as 11. There are also children’s prepaid cards that a parent can load money onto and control but these are not current accounts.
Business accounts. If you run a limited company or are a sole trader, it’s a good idea to keep your business finances separated from your personal finances. You can do this with a business current account. If you’re interested in freelance bank accounts, check out our guide on best business bank accounts for freelancers.
Sharia-compliant accounts. If you want to bank more ethically, opening an Islamic bank account is an option worth considering. Learn more about Sharia-compliant accounts.
Potential current account fees and costs
When picking a new current account, check all the potential costs. Here are some of the fees you may come across:
Monthly fee. Most current accounts are free, but some will charge a monthly fee, especially if they offer special perks and benefits.
Foreign transaction fee. Many debit cards charge a fee when you spend in a currency other than sterling. The foreign transaction fee often amounts to around 3% of the transaction. If you want to avoid it, you could consider having a dedicated account for when you’re travelling – digital banks like Monzo and Starling don’t charge foreign transaction fees.
ATM withdrawal fee. Withdrawing cash may come for a fee with some current accounts, especially if you do it overseas.
International money transfer fees. Sending or receiving money in a currency other than sterling is likely to be quite expensive with a standard current account. You may want to consider a money transfer service instead.
Cheque fees. There’s usually a pretty hefty fee for cancelling a cheque.
Overdraft charges. Overdrafts tend to be costly. Always check how much your bank charges before using yours. We’ve outlined two examples below showing how the cost of a £500 overdraft can vary, depending on what EAR (effective annual rate) your bank charges you. The difference can be huge – you’d save £100 a year in interest on an overdraft of £500 if you picked an account with an EAR of 15%, compared to a rate of 35%.
Overdraft: £500
EAR = 15%
Cost for 7 days: £1.34
Cost for 30 days: £5.78
Cost for 90 days: £17.53
Cost for 365 days: £75.01
Overdraft: £500
EAR = 35%
Cost for 7 days: £2.89
Cost for 30 days: £12.49
Cost for 90 days: £38.40
Cost for 365 days: £175.00
Finder survey: What matters most to you when choosing a current account?
Response
% of respondents
Who the provider is
28.99%
Switching bonus
21.74%
Overdraft interest rate
20.29%
Other
1.45%
In-credit interest rate
21.74%
FSCS protection
27.54%
Easy-to-use app
53.62%
Customer service
50.72%
Charges/fees
47.83%
Bank branches
18.84%
Analysis tools
7.25%
Source: Finder survey by Finder of Finder members
Loyalty doesn’t pay when it comes to current accounts so always keep an eye on what’s on offer from other providers. The challenger banks, for example, have some enticing features which rival and often beat the accounts from the traditional banks. Just be sure to keep a close eye on fees, eligibility, and interest rates so you know exactly what you’re paying (or might pay) and what you’re getting in return.”
Bottom line
Current accounts are an essential tool to manage your daily finances. They provide a means to receive your salary and benefits, and enable you to make payments, pay your bills and build your credit history.
There is no one size fits all when it comes to getting a current account, so be sure to do your research to find an account that best suits your circumstances.
When comparing accounts to find the best option for you, there are a variety of factors to consider, including overdraft terms, online banking facilities and customer service quality.
Some accounts, including packaged bank accounts that offer perks like insurance, come with monthly fees, so it’s a good idea to factor these charges when making a decision.
Really know your customer? How UK banks are tackling the challenges of personalisation
Finder published a paper in May 2024 exploring how the UK banking sector is tackling personalisation in customer experience. Our paper includes original research, plus insights from Kroo’s CTO Alexey Gabsatarov, Anette Broløs and Erin B Taylor of Finthropology, Nicole Perry of Monument, Isaac Robertson-Jonas of Finder and professor of finance Timothy King.
To be eligible to open a current account, you must be a legal UK resident, and at least sixteen years old. Some banks may stipulate that you must be eighteen if you don’t have parental approval. You may also need to be credit checked – this is because many current accounts will come with an overdraft that may be reduced if you have a poor credit history.
With most banks, you can usually apply online – you will need to provide your personal and financial details. In some cases, you may then be asked to pop into a branch to have your ID verified. If you’re applying for an account with a digital-only bank, you’ll usually need to apply from the mobile app and to provide a picture of your ID.
You usually can. You’ll have to get in touch with your bank, who will be able to turn your personal current account into a joint account. Or you can open a new joint current account here.
There are no fixed rules and you can keep as little as £1 into your current account. However, people usually have their salary paid into their current account and keep most of it there to spend it over the course of the month – together with some emergency funds that are thus easily accessible if anything goes wrong. It’s also a good idea to open a savings account to put your savings aside (so you’re less tempted to spend them). Finally, keep in mind that some current accounts may require you to deposit a minimum sum every month in order to access certain benefits.
It all depends on your circumstances, but in a nutshell, you want: a) no fees b) agility (your account must be easy to manage and use) c) some nice rewards and perks if possible. In our opinion, the first two things beat the third one – rewards and bonuses are great, but being able to keep on top of your finances for free and with no headaches is much more important.
Banking scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rebecca Goodman, a member of Finder's Editorial Review Board.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 285 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
Cardless cash provides a convenient way to use an ATM without their card. If you often go out without your wallet or want to make it easier for family members to take out money, this is a feature that deserves a second look.
Can a non-UK resident who works in the UK open a current account online with you?
Finder
JhezelynNovember 13, 2018Finder
Hello Ewen,
Thank you for your comment.
Upon checking, yes, you can open a personal UK bank account as a non-resident, but normally you’ll be asked for proof of ID and residential address in the UK.
To open a personal UK bank account you need something to verify your current address and your identity:
-For ID, your passport will do, and any national ID card may help as well;
-For proof of ID and proof of address, a UK driving license (if applicable);
-For proof of address at least two documents no more than three months’ old showing your name and address, e.g. a utility bill and council tax bill, in your name, and sent to your residential address will suffice.
Furthermore, you may get in touch with the bank first to verify.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
AnonymousNovember 1, 2018
Hi. I am due to get married soon and I am looking for a current account that pays a better rate of interest while we save in the short term.
Finder
JhezelynNovember 1, 2018Finder
Hello,
Thank you for your comment.
You may compare bank accounts on this page. Based on the table found on the page, Clydesdale B Current Account has a higher interest rate compared to the other three. However, you would want to compare other features too.
Before submitting an application, please ensure that eligibility criteria are met. Please make sure that you’ve read the relevant T&Cs or PDS of this account to help consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
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Can a non-UK resident who works in the UK open a current account online with you?
Hello Ewen,
Thank you for your comment.
Upon checking, yes, you can open a personal UK bank account as a non-resident, but normally you’ll be asked for proof of ID and residential address in the UK.
To open a personal UK bank account you need something to verify your current address and your identity:
-For ID, your passport will do, and any national ID card may help as well;
-For proof of ID and proof of address, a UK driving license (if applicable);
-For proof of address at least two documents no more than three months’ old showing your name and address, e.g. a utility bill and council tax bill, in your name, and sent to your residential address will suffice.
Furthermore, you may get in touch with the bank first to verify.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
Hi. I am due to get married soon and I am looking for a current account that pays a better rate of interest while we save in the short term.
Hello,
Thank you for your comment.
You may compare bank accounts on this page. Based on the table found on the page, Clydesdale B Current Account has a higher interest rate compared to the other three. However, you would want to compare other features too.
Before submitting an application, please ensure that eligibility criteria are met. Please make sure that you’ve read the relevant T&Cs or PDS of this account to help consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn