Compare current accounts

Make the most of your money by comparing current accounts[1]

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What is a current account?

A current account is a type of everyday bank account that’s designed to help you manage your money.

It gives you instant access to your funds, so you can use it for your day-to-day spending, and it’s usually the bank account that’s used for most of your transactions.

Your salary, pension and benefits can be paid into it and you can set up direct debits and standing orders from it, or use it to pay bills and make purchases instantly.

When you open or switch to a new current account, some banks will reward you with free cash, a competitive overdraft facility, or an appealing interest rate.

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Types of current accounts

You can choose from a range of different current accounts. Which type is best will depend on your financial situation and what you need from your account.

Standard current accounts

Also known as an everyday current account, this type of account comes with a debit card and access to online banking. It might also give you the option of having an arranged overdraft and a chequebook.

These accounts are usually free, as long as you don’t go over your overdraft limit, and tend to come with low interest rates.

Basic bank accounts

These bank accounts are typically a stripped back version of standard accounts and are generally aimed at people with a poor credit score.

They usually offer the same services that you get with a standard account but without the option of an overdraft or chequebook. There may also be restrictions on how much you can withdraw from cash machines in a single day.

Packaged bank accounts

Sometimes called a premium account, this type of account comes with extra benefits like travel insurance, breakdown cover or mobile phone insurance in return for a monthly fee.

To make sure the extra cost is worth your while, consider whether you’d actually take advantage of all the perks and if you have any of them already, so that you’re not doubling up.

High-interest accounts

This could be the right option if you’re looking for a better rate of interest than a standard current account. The annual equivalent rate (AER) you get will depend on the size of your balance and how much you can pay in each month.

These accounts often provide a better return than you get with a savings account, but with easier access to your money - although they typically have a maximum balance they’ll pay interest on and only offer the high interest rate for a set period.

Cashback current accounts

With cashback current accounts, you’re rewarded when you use it for certain types of spending, or when you pay in a set amount of money each month.

Some accounts will pay you a percentage of your household bill payments or give you money back when you spend in certain shops. However, some reward accounts charge a fee which could outweigh the cashback benefit.

Student bank accounts

If you’re heading off to uni, a student account could help you manage your finances. You can pay money in and use it to pay your bills or take out cash. Student current accounts usually offer interest-free overdrafts and other benefits like free railcards or gift cards.

Some overdrafts are tiered, so you get a higher limit as you progress through your course, but you’ll still need to stay within the limit to avoid charges.

Our top current account deals

We've selected our top current accounts to help you narrow down your search. Check out the deals below.

First Direct | Get £175 + 7% saver interest

First Direct | Get £175 + 7% saver interest

Switch to the First Direct 1st Account and you’ll receive £175. To qualify, you must use the Current Account Switch Service and the account is only available to customers who are new to First Direct - if you’ve had an account in the past, you won’t get the free cash. 
If you want to use First Direct, but do not want to switch accounts, you could still benefit from a  £20 welcome bonus if you open a current account.  
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Want more choice or already have an account? No worries, we love the particularly picky and careful comparers. Just click the link below and off you pop to look at other great deals.

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  • Be a new customer (you can't currently have a First Direct account or have opened an HSBC current account on or after 1 January 2019). 

Minimum pay-in

  • Pay in at least £1,000 within three months of opening the account. 

Arranged overdraft (subject to status)

  • First Direct offers a £250 interest-free overdraft.
  • Overdraft representative example: 0% EAR variable on the first £250, 39.9%. EAR variable thereafter, giving a representative rate of 30.5%. APR variable (assumed arranged overdraft £1,200).
  • Plus, to get the headline 7% regular saver interest rate you will need to set up a standing order from your First Direct account to pay between £25 and £300 into it each month for 12 months. The maximum you can save in a year is £3,600 per year.
  • First Direct has consistently scored best of the major banks for service, with the most recent YouGov survey commissioned by Competition and Markets Authority rating it top three for customer service.

How to switch current accounts?

It’s a good idea to compare current accounts to make sure you’re getting the best deal. If you find one with a better interest rate, or more features and benefits, it’s easy to switch.

The current account switch service (CASS) makes it easy, guaranteeing to complete your switch within seven working days.

This free-to-use service will automatically move your regular incoming payments, like your salary or benefits, and outgoing payments like direct debits and standing orders, and will transfer your old balance to your new account.

All you need to do is:

  • choose a new account
  • check you’re eligible and agree any arranged overdraft
  • pick a switch date
  • let your new bank or building society do the rest

How long does it take to switch accounts?

The CASS guarantees that your account will be switched over within seven working days.

But if you set up any new payments during this time they won’t be switched over - you’ll need to wait until your new account is fully set up.

Your incoming payments will switch to your new account along with any standing orders and direct debits. And don’t worry, any payments that go to your old account will be redirected.

On the switch day, your balance will transfer to your new account and your old one will automatically close.

What benefits can you get by switching current accounts?

There are many reasons why you might want to change your bank or building society and there are lots of perks you can enjoy by switching.

Enjoy rewards

Depending on the account you choose, switching could earn you free rewards like a cash incentive or other benefits like free cinema tickets, discounts off your favourite stores, travelcards and more.

Save and earn money

Getting a better interest rate on your balance can help your money grow. Plus, you may be able to earn cashback.

Switching can mean you benefit from a lower overdraft interest rate or you may be given a higher overdraft threshold. You may even find a bank that won’t charge you for using your overdraft.

Get more control

Switching banks could mean you have a local branch that’s closer to you and an account that gives you access to better services - like a 24-hour helpline and user-friendly apps that let you check your balance and manage your money from your phone.

What should I look for when comparing current accounts?

When you’re exploring options for a new current account, it’s important to find one that will work best for your needs.

Think about how much you plan to pay in and withdraw each month and whether you’ll need an arranged overdraft.

When you’re comparing accounts you should consider:

  • Interest rates when you’re in credit
  • Overdraft interest rates and limits
  • Features and incentives
  • Level of customer service
  • Monthly fees you may have to pay
  • Any minimum monthly pay-in rules

You should also think about how you like to do your banking. If seeing someone in person is important to you, you’ll need a bank with an easily accessible branch. Similarly, if you prefer internet or telephone banking, check what options are available.

Why compare current accounts?

It might be easy to simply opt for a well-known bank or building society, but it’s still worth comparing the options available.

This way, you can avoid missing out on cash incentives or better interest rates for your balance and overdraft.

You might find you can save on fees and charges, which can vary a lot between banks and types of current account.

And it could mean you benefit from added perks and helpful features like budgeting tools and the ability to apply for an overdraft online.

Finding the right account for your needs could make your life much easier and potentially save you hundreds of pounds.

Choosing the best current account for you

There are plenty of options on the market, so to help you find an account that will make a difference to your finances, look out for:

  1. Account fees

    Some current accounts, particularly ones with rewards, come with monthly fees. Compare costs and other charges you might have to pay while using your account

  2. Overdrafts

    Find out if you can have an arranged overdraft and what interest you might be charged. It’s still possible to switch accounts when you’re overdrawn if you have a good credit history

  3. Cashback

    Make sure you’re likely to use and earn any rewards or benefits you might receive so that it’s worth paying the monthly fee

  4. Travel insurance

    Some packaged current accounts include travel insurance. Make sure this provides the cover you need before travelling and that you’re not doubling up with another policy

  5. Breakdown cover

    If your account includes breakdown cover as part of the monthly fee, look to see if it includes everything you need and check you can’t get it cheaper elsewhere

  6. Mobile phone insurance

    One of your current account perks might be mobile phone cover, so check your account includes this before you buy a separate policy for your phone

  7. Home emergency cover

    Some current accounts come with 24/7 home emergency cover to help you if an unexpected disaster strikes, like a burst pipe. Just make sure you’re not doubling up with an existing policy

  8. Digital banking

    See how your banking app compares. Some give you real-time spending notifications, features to help you budget and will let you manage your money on the go

What’s the difference between an authorised and unauthorised overdraft?

Authorised overdrafts

An authorised or arranged overdraft is one that’s agreed with your bank in advance - you might be offered one automatically when you open a current account, but you’ll have to pass a credit check to be accepted for one.

You may never need it, but if you do, an arranged overdraft lets you borrow more money than is in your account up to an agreed limit. You may be charged interest for using your overdraft, which can get expensive if you go over your pre-agreed overdraft limit.

Unauthorised overdrafts

This type of overdraft is when you go overdrawn without having agreed an overdraft with your bank beforehand. Similarly, spending more than your pre-agreed limit will also take you into an unauthorised overdraft.

You’ll be charged interest for using an unarranged overdraft and it’s likely to damage your credit score, making it harder to borrow in the future. Some banks have a monthly cap on charges and they may decline any transactions you try to make until the debt is paid.

Can I have more than one current account?

Yes, you can have several current accounts and doing this can sometimes make managing your money easier.

For example, you might have one account for your own personal spending and a joint account with your partner to cover household expenses.

There can also be other benefits to having more than one account, as this can let you take advantage of various incentives, interest rates and overdraft limits.

Just make sure you can meet the minimum requirements of each account and be careful not to open too many at once, as this could negatively affect your credit score.

Can I get a current account with bad credit?

Yes, you can open a current account if you’ve got a low credit rating, but you may be restricted in the type of account and features you can get.

When you apply for an account with an overdraft facility, the bank will do a credit check. If you’ve got a bad credit score, it’s unlikely you’ll be accepted.

However, most banks won’t do a credit check for a basic bank account. And you’ll still be able to get many of the features that come with standard current accounts, like a debit card and online banking.

If you open a basic account and use this to manage your finances and pay your bills on time you can improve your score - this can help you access other types of account in the future.

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