Bank accounts can be useful for all sorts of reasons. They enable you to receive your salary or state benefits, and they can help you pay bills and make other payments.
When it comes to opening your first bank account, there are a variety of accounts to choose from so it’s important to find one that meets your needs. Here’s what you need to know.
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
Revolut's standard plan charges no monthly fee which is ideal when you're opening your first bank account. The account is managed online and via the app, and you can enjoy fee-free withdrawals of up to £200 a month and fee-free currency exchange on weekdays of up to £1,000 a month. What's more, the account includes airport lounge access and you can earn one 'RevPoint' per £10 spent, turning card purchases into perks like air miles. Revolut is not a UK licensed bank so your money won't be protected under the FSCS. However, it is regulated by the FCA as an institution that deals in electronic money and has to hold all client funds in a 'segregated account' at a licensed UK bank.
Pros
Low overseas fees
Quick application
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked 'Junior' account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
The free account from Monzo can be a great way to help you manage your finances. You'll get instant spending notifications and be able to monitor your spending habits through the app, with alerts if you're spending your money too fast. The app also makes it easy to split bills with friends and you can start building up a savings cushion with the Monzo Savings Pot and Cash ISA accounts. The nifty round-ups feature also rounds up your spending to the nearest pound and transfers the spare change to your Pot. There's even an option to apply for an overdraft on the account.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Pros
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Cons
Free ATM withdrawals outside the EEA limited to £200,
£1 fee for depositing cash at PayPoints,
Maximum cash deposit of £1,000 every 6 months
No rewards program
Minimum opening balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
0%
Overseas cash withdrawals
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
Earn £5 cashback a month for six months when making 20 or more debit card payments each month.
This everyday current account from TSB has no monthly fee and comes with an arranged overdraft and cashback rewards. Each month you make at least 20 debit card payments, you'll earn £5 cashback, for the first 6 months. You can also set money aside in different savings pots to help you get better at budgeting and saving, while the Save the Pennies feature rounds up all debit card payments to the nearest £1 and transfers the difference into your savings. In addition, My TSB Rewards gives you discounts at certain retailers or for important things like writing your will.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.9% EAR variable.
Pros
Earn cashback as you spend
Competitive Monthly Saver
Save the Pennies feature
Overdraft available
Cons
Cashback on Save and Spend account expires after six months
Interest charged on overdrafts
Minimum opening balance
£0
Minimum operating balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
Europe: 2.99% Elsewhere: 2.99% plus flat fee of £1
Receive 1% cashback on everyday purchases capped at £15.
Open the Chase current account and you can enjoy a range of rewards for no monthly fee. Whenever you spend on your Chase debit card, whether at home or abroad, you'll earn 1% cashback for the first year (up to £15 a month). You can transfer your cashback whenever you like. Plus, you can round up your spending to the nearest £1 and the difference will automatically be saved for you - your round-up balance will even earn 5% interest. You'll also be able to open the Chase Saver account which pays a competitive rate of interest. And, if you're a regular traveller, you can spend on your card overseas fee-free.
You can open an account with Kroo by downloading the app from Google Play or the App Store, as long as you're at least 18 years old and a UK resident. There's no monthly fee with this account and you can earn interest on your balance and enjoy fee-free spending abroad - perfect for any overseas trips you have planned. It's easy to track your spending, categorise your transactions so you know what's being spent where, and settle up with friends via the app. You can also apply for an overdraft on the account, plus your funds will be protected under the FSCS.
It's quick and easy to open this free account from Starling Bank. You can monitor your spending and categorise transactions through the app, and even use the Bills Manager feature to pay regular direct debits and standing orders straight from a separate Savings Space. This can prevent you from spending money that should be going towards your bills. The account lets you set up different Savings Spaces for different purposes (house deposit, holidays and so on), plus you can spend on your card overseas for free and also apply for overdraft if you need one. The account has FSCS protection too.
Pros
Free ATM withdrawals and spending anywhere abroad
Can deposit both cash and cheques for free
Spending insights and saving tools
'Settle up' feature to split joint bills
Pays interest on current account balance
Overdrafts and loans available
Cons
Lower ATM withdrawal limit than some other digital challengers
Bank accounts come in all shapes and sizes, so when choosing one you’ll need to consider which features are most important to you.
If you’re opening an account for a child or a teenager, bank accounts tend to be fairly basic and won’t offer facilities such as an overdraft or a debit card (unless you give permission). In this case, you can simply compare how much interest each account pays and take it from there.
However, if you’re an adult, it’s a good idea to ask yourself the following questions to help you find the right account:
Do you want/need an overdraft?
Are you likely to stay in credit and if so, which accounts pay interest?
Do you want to take advantage of cashback or other rewards?
Are you happy to pay a monthly fee for your account?
Do you want to be able to access your account in-branch or are you happy with an online-only account?
Getting your priorities straight can help you to select the account that best matches your needs. You can compare a range of bank accounts here. Keep in mind that if you have a low credit score, you may find it harder to get accepted for a mainstream bank account, particularly if it has an overdraft. In this case, you may want to look at basic bank accounts which offer limited facilities but are designed for those with bad credit. There are also specialist bank accounts for those with bad credit.
What do you need to open your first bank account?
To open your first bank account, you will need to provide your bank with a range of documents and details. This can vary between providers but usually includes:
Proof of identity such as a passport or driving licence
Proof of address such as a bank statement, utility bill or council tax bill. You may also need to show how long you’ve lived at your address. Some of the challenger banks do not require this and it is possible to get an account without proof of address
Personal details including your name, address, date of birth, nationality, contact details and marital status
Income and expenditure details – some providers may ask for your total monthly income and employment status
What happens when you open your first bank account?
Depending on the account, you may be able to open it online, over the phone, by post or in person at your nearest branch. You’ll need to fill in an application form and provide the above details and documents. If you open your account over the phone or online, depending on the bank you may still be required to bring your proof of ID and address into a branch.
Once that’s complete, your chosen bank might run a credit check to look at your financial history – particularly if the account has an overdraft. If you pass and your application is accepted, your provider will get in touch, your account will be opened and you’ll then receive your debit card and PIN separately in the post.
Depending on the provider and how you’ve opened your account, it can take up to 10 working days to complete the account opening process. Once you’ve received your debit card you’ll usually need to activate it online or by phone before you can use it.
What is the minimum age you can open an account?
Children’s bank accounts can usually be opened from the age of 11. Adult accounts can usually be opened from the age of 18, although some accounts are available to those aged 16 years or over.
Pros and cons of a bank account
Pros
Bank accounts are ideal for managing your day-to-day money.
Many bank accounts are fee-free.
Some accounts pay interest on in-credit balances.
You may benefit from an interest-free overdraft.
Some bank accounts offer rewards and perks such as travel insurance or breakdown cover.
Cons
Some accounts, particularly those that offer rewards, charge a monthly fee.
You’ll usually need a good credit score to get an overdraft.
Overdrafts can be expensive.
You may need to pay in a minimum amount each month to qualify for features such as interest or cashback.
Bottom line
Bank accounts can be useful for managing your everyday finances. They enable you to receive payments, including your salary, directly into your account, and can help you pay other people and bills. Some accounts will also offer a host of additional features and benefits.
However, as with any financial product, it’s crucial that you shop around and look for an account that suits your needs best, paying particular attention to any fees or conditions of the account so that you don’t get caught out. You can compare bank accounts here.
Frequently asked questions
This will depend on your chosen provider. Many bank accounts can be managed online or via the provider's app. However, you may also be able to manage your account over the phone or in branch if you prefer.
Cash held with UK organisations that are regulated by the Financial Conduct Authority (FCA) is protected under the Financial Services Compensation Scheme (FSCS). This protects funds up to £85,000 per person per institution in the event your provider were to go bust.
Yes, you can have as many bank accounts as you like across different providers. This can be beneficial for many reasons, whether you want to budget better or take advantage of cashback offers, for example.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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