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Compare current accounts
Get up to £180 when you switch bank account
- Compare the latest current account deals from a range of leading providers
- See if you can benefit from better interest rates and other rewards by switching
Looking for Compare the Market rewards?* Current accounts are not a qualifying product.
What is a current account?
A current account offered by a bank or building society lets you look after your day-to-day spending, with instant access to your money.
You can have your salary, pensions and any benefits paid into it, and set up direct debits or standing orders to pay bills.
Some current accounts pay interest on your balance, give you cashback when you spend or offer a competitive overdraft facility.
What type of current account is best for me?
The best current account for you will depend on what you want it for. Here’s a simple guide to help you decide:
For everyday spending
A standard current account is ideal for your day-to-day spending. You’ll be given a debit card linked to the account that lets you pay for goods and services, as well as make cash withdrawals from an ATM.
An everyday current account usually won’t charge you a monthly fee and is straightforward to manage.
For rewards
A rewards account may typically offer cashback, a linked savings account, and give you retail discounts or let you donate to charity. You can expect to pay a small monthly fee of around £3.
You could earn the rewards each month simply by logging in to the bank’s mobile app and setting up a minimum number of monthly direct debits, for example. Or you might need to deposit a certain amount each month and spend a minimum sum using your debit card.
For extra benefits
A packaged bank account offers beefed up benefits such as breakdown cover and insurance for your mobile phone, travel and home emergencies.
You'll typically pay a bigger monthly fee - up to around £18 - and likely need a good credit score to be eligible. Age restrictions could also apply.
If you share financial responsibilities
A joint account lets you share an account with another person. This is usually your partner, spouse, housemate or a family member.
Both account holders have equal access to pay money in, withdraw cash, set up direct debits to pay household bills and spend using a debit card.
You can’t compare joint bank accounts with Compare the Market.
If you want a competitive rate of interest
Some current accounts pay better rates of interest than you’d find in a savings account.
A high-interest current account tends to have more restrictions than a standard current account, though. For example, you might need to pay in a minimum amount each month or keep a certain balance in the account.
And be aware that the high rate of interest may be for an introductory period only.
If you’re a student
A student bank account aims to meet your needs if you’re studying at college or university. They tend to offer interest-free overdraftsoverdrafts, discount cards and have no monthly fee.
You can’t compare student bank accounts with Compare the Market.
If you’re graduating from uni
A graduate bank account is designed to help you make the switch from student life to professional life.
You‘ll often find it features an interest-free overdraft that gets smaller in size each year, as you gradually pay off your overdraft by starting paid work.
Learn about switching from a student bank account to a graduate bank account
You can’t compare graduate bank accounts with Compare the Market.
If you have a poor credit rating
If you’re not eligible for a standard bank account because you have a poor credit score or you’re in financial difficulty, a basic bank account could be an option.
You can set up direct debits to pay bills and use a debit card to withdraw cash from ATMs and pay for goods. But you won’t be offered an overdraft and you won’t earn interest on any cash balances.
You can’t compare basic bank accounts with Compare the Market.
What benefits can I get by switching current accounts?
The current account market is extremely competitive, with many offering a variety of benefits and perks. Switching can help you make the most of them.
For example, some banks and building societies offer attractive interest rates on balances to appeal to new customers. And some will pay a cash bonus for switching.
Certain types of accounts offer benefits and rewards, such as:
- Interest on credit balances
- Cashback
- Linked savings accounts with high interest rates
- Travel insurance
- Breakdown cover.
With so much choice, make sure you compare current accounts to find one that works best for you.
When you switch current accounts to receive rewards, you might be required to pay in a certain amount each month and/or set up direct debits from the account. This is to encourage you to use it as your main account.
Always check the minimum requirements before you open an account.
How to switch current accounts
If you’ve decided to switch or open a new bank account, the next steps are simple:
- Compare current account deals
Choose the type of account you’re looking for and we’ll show you a range of options. You can compare interest rates, overdraft limits, account benefits and more. - Complete the application
Once you’ve found an account you want to switch to, click through to your new provider and apply. It should only take a few minutes. - Check your current account switch goes through
As most banks and building societies are signed up to the Current Account Switch Guarantee Service, this should be a simple process. Your new provider will handle the switch for you, transfer your money and move any direct debits over. If any payments are made to your old account, they will automatically be forwarded to your new account.
Do double-check this with your new bank, though. If it isn’t part of the switch scheme, you may be responsible for some of the process.
When you open a bank account, you’ll need to give your new provider certain bits of information such as proof of ID and address. Your new bank is also likely to carry out a credit check on you.
How long does it take to switch a current account?
If your new bank is part of the Current Account Switch Guarantee Service, your switch can take as little as seven working days. You can also pick the date you’d like the switch to take place.
What our expert says...
"With the Current Account Switch Guarantee, switching current accounts is easier than ever. Most banks will transfer your money, salary, direct debits and standing orders for you, all within seven working days.
This means you can take advantage of the best current accounts by switching. Many of the top current accounts offer switching bonuses, so you could make money simply by switching accounts when a new deal is available."
- The Editorial Team, Experts in personal finance, insurance and utilities
Does opening a current account affect your credit score?
Taken in isolation, opening a new current account shouldn’t affect your credit score.
When you open a current account, you’ll usually need to undergo a credit check. This is because many current accounts offer an overdraft facility, which is a type of credit as you’re effectively being lent money.
A new current account shouldn’t affect your credit score. But if you apply for several new accounts, or a new account and a credit card at the same time, it could have an impact. This is because multiple applications for credit can raise a red flag for lenders.
If you have a bad credit score or poor credit history, you can consider bank accounts for bad credit. These include a basic bank account which doesn’t give you an overdraft so won’t mean a credit check.
Can I have multiple current accounts?
You can have as many current accounts as you like. In fact, it’s often useful to have more than one bank account.
Some people use different accounts for different bills. For example, if you’re in a couple, you may want a joint account for shared mortgage payments and your own account for personal spending.
What’s the difference between authorised and unauthorised overdrafts?
Authorised overdraft
This is an overdraft agreed with your bank in advance. Also known as an arranged overdraft, it lets you spend more money than is in your account – up to an agreed limit – by borrowing from your bank.
You’ll usually be charged interest for using an arranged overdraft, and must pass a credit check to be accepted for one.
Unauthorised overdraft
This happens when you either go overdrawn without first agreeing to it with your bank, or you spend more than your arranged overdraft limit.
You may 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.
Compare current accountsFrequently asked questions
What’s the difference between a current account and a savings account?
Your current account handles your day-to-day spending, bills and income. Unlike a savings account, you can set up direct debits to make regular payments.
Savings accounts give you somewhere safe to keep your unspent income, where it can grow with a better interest rate than a current account.
How safe is my money in a current account?
If your current account is with a UK authorised bank regulated by the Financial Conduct Authority (FCA), it’s protected by the Financial Services Compensation Scheme (FSCS).
Up to £85,000 is protected if your bank or financial service provider goes bust. If you have a joint account, you each get £85,000 protected, so that’s £170,000 in total.
If you have money in multiple accounts with banks that are part of the same banking group (and share a banking licence), the FSCS treats them as one bank. This means that the compensation limit applies to the total amount you hold across all these accounts.
You can check to see if or how much of your money is protected by the FSCS.
How much should I pay into a current account?
There’s no set amount, but some banks insist you pay in a minimum amount each month. If you can’t do this, or are refused a current account, consider a basic bank account instead.
A basic account offers you much the same service, but without the frills. You won’t have access to credit (in the form of an overdraft), but you’ll still have a debit card and can pay direct debits or standing orders.
What happens to my direct debits if I switch current accounts?
When you switch bank accounts, most providers will transfer your direct debits to your new account as part of the Current Account Switch Guarantee.
If your old or new current account provider isn’t signed up to the Current Account Switch Guarantee (most are), you might need to contact them to transfer your direct debits.
Do I need to tell my bank when I switch current accounts?
No, you don’t need to tell your bank you’re switching, provided your old and new provider are signed up to the Current Account Switch Guarantee. You just need to ask your new provider to move your account. They’ll transfer the money from your old account to your new one, and close your old account.
If your old or new account provider isn’t signed up to the Current Account Switch Guarantee, you may need to contact them yourself to organise your switch.
What’s the difference between a personal current account and a business current account?
A personal current account is for your personal finances. You can use it to deposit your salary and other income, as well as set up direct debits and standing orders.
A business current account is for the money a company earns and spends. Limited companies are legally required to have a business account.
If you’re self-employed, it’s not a legal requirement to have a business account.
What happens if I have a credit card and savings account with the bank I’m leaving?
Closing your current account doesn’t mean you have to close other accounts, cards or services with that provider. You can have multiple accounts with different banks or building societies.
Can I add another person to my current account?
Most banks will let you add someone else to your current account, so it becomes a joint account. But your bank or building society may limit the number of people you can tie to one account.
And consider that you’ll be financially linked to whoever you share the joint account with, which could affect your credit rating if they have a poor credit history.
What fees should I consider when comparing bank accounts?
There are a range of fees that can come with using a current account. They include:
- A monthly or annual account fee – these are usually only charged for packaged accounts
- Overdraft charges – instead of daily or monthly fees, a simple annual interest rate (APR) is charged on overdrafts
- Refused payment fees – if there’s not enough money in your account to cover a direct debit, standing order or cheque payment.
Providers might also charge for:
- Providing duplicate bank statements
- Using your debit card overseas
- Cancelling a cheque
- Getting a reference from the bank
- Getting a banker’s draft.
What’s the difference between a direct debit, standing order and recurring payment?
Direct debits, standing orders and recurring payments are very similar, but there are some key differences:
- Standing order –a regular payment to another person, account or business. An example might be a fixed monthly transfer that you set up between your own current account and savings account.
- Direct debit – another type of regular payment, but one set up by the business or organisation you’re paying. You’ll normally need to sign an agreement to give them permission to take payment. An example is paying your utility bills by monthly direct debit.
- Recurring payment – similar to the above, but set up using your card details, rather than your bank account. A good example is when you subscribe to a streaming service.
How do my current account rewards affect tax?
If your current account offers a cash reward, this isn’t covered under your Personal Savings Allowance (PSA). That means it will be taxable.
If the account offers rewards in the form of discounts, you won’t have to pay tax.
Depending on your tax rate and how much interest you earn, your interest payments may or may not be tax-free.
Should I consider an app-based current account?
App-based banks don’t have high-street branches – everything is done online. Although your account is entirely in the app, some app-based banks allow you to deposit cash and cheques into your account. The process can vary among banks, so check before you open an account.
App banking offers other useful features. You can set up notifications, which make you more aware of your spending and could stop you going overdrawn. You could ring-fence money to protect your savings or temporarily freeze your account when your balance is low.
