The best bank accounts: Compare switch offers and more perks

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The best bank accounts go the extra mile, with many current accounts coming with incentives or extra perks to help you get the most from your money.

But people rarely change their bank accounts, often sticking with one they opened as a young worker, student or even child, despite there being much better deals – and even free cash – out there. 

The latest statistics from the Current Account Switch Service (Cass) suggest that bank account switches are becoming more popular in the UK, with 2024 being the second consecutive year of over a million switches. But when you consider there’s almost 54million adults in the UK, it’s clear most people are staying put.

The savvy consider jumping ship for a better deal or service though. There are lots of banks to choose from, offering different current accounts to suit different people. Options range from those that pay interest to ones that offer cheaper spending abroad, good apps and budgeting tools, a better overdraft rate, or extras such as insurance.

There are often generous incentives on offer to encourage you to switch bank account. At the moment you can bag up to £200 just by switching, with deals from Lloyds, First Direct and NatWest available.

Meanwhile, Britain’s biggest building society Nationwide has paid out £100 in bonuses to qualifying members with current accounts for the past three years – and promises to keep its branches open. 

Some banks have competitive linked savings rates. For example, digital bank Zopa has an easy access saver that pays 4.75 per cent for 12 months when you pay in at least £500 to its current account each month. Starling pays 3 per cent for linked instant access savings, while Monzo pays 3 per cent and Chase pays 2.5 per cent (boosted to 4.5 per cent for new customers).

Banks such as Barclays, HSBC and Santander also grant access to exclusive easy-access savings rates. If you’re unhappy with your current bank or spot a better deal elsewhere, it may be worth considering a switch. You can find our pick of the best bank accounts below.

> Read more: The best cash Isa rates 

Best current accounts: Top accounts and perks at a glance

Best bank switch offers

1. Club Lloyds: £200 switching bonus plus lifestyle benefits

Lloyds is running a switching bonus again, offering £200 for switching to a new Club Lloyds account. There’s a £5 monthly fee but this is waived when you pay in £2,000 or more.

You can get the bonus by:

• Opening one of these bank accounts – Club Lloyds, Club Lloyds Silver, Club Lloyds Platinum or Lloyds Premier.
• Switching using the Current Account Switch Service, along with three or more active direct debits.
• You’ll get the £200 within 10 working days of the switch. 

You won’t be eligible if: You’ve had a switch offer from Lloyds, Bank of Scotland or Halifax since April 2020.

We like: This is the biggest bank switch bonus on offer at the moment and the rewards are decent enough – a Disney+ subscription costs around £60 a year normally.

Watch out for: The £5 monthly fee unless you pay in the £2,000 minimum, and the bank account must be a new account.

2. First Direct: Great for customer service and £175 switch deal

First Direct’s offering £175 to switch to its current account. There’s no closing date for the offer, but the bank says it can withdraw it at any time.

You can get the bonus by:

• Opening an account and switching within 45 days using the Current Account Switch Service, including at least two direct debits or standing orders.
• Depositing £1,000, making five debit card payments, and logging on to digital banking within those 45 days.

You won’t be eligible if: You’ve had a First Direct product or opened an HSBC current account since 1 January 2018.

We like: First Direct is well regarded for its customer service, even though it has no physical branches. There’s no fee for using your card abroad, and you have a £250 interest-free overdraft (it’s 39.9 per cent variable above that, making a representative rate of 30.5 per cent APR variable).

Watch out for: The lack of physical branches could be a problem for some, although you can pay in cash and cheques at HSBC and Post Office branches.

> Read more: First Direct tops customer satisfaction index 

3. NatWest: £175 for switching to a Select or Reward current account

There’s £175 up for grabs with NatWest and it’s great that getting the full amount no longer depends on opening a linked Digital Regular Saver.

You can get the bonus by:

• Opening an eligible Select or Reward account.
• Switching using the Current Account Switch Service, paying in £1,250 within 60 days and logging in to the mobile app.
• When you’ve met all the conditions, you’ll get £175 within 30 days, as long as your account has stayed open.

You won’t be eligible if: You’ve had a switch offer from the NatWest Group before (which includes Royal Bank of Scotland or Ulster Bank). You can’t already have a current account with NatWest or one of its other brands or be switching from one of its other brands.

We like: The Reward bank account pays £4 a month when you have 2+ direct debits of at least £2, and £1 a month for logging in to the app – but there’s a fee of £2 a month. You must pay £1,250 into the account every month. 

Watch out for: The maximum you can pay in to NatWest’s regular saver is £150 monthly.

Best current accounts with interest 

Current account in-credit interest has dwindled in recent years, with many banking providers offering customers little to no interest – but deals are still available.

1. Nationwide: 5% on balances up to £1,500 – plus get £175 for switching

Nationwide has an introductory 5 per cent fixed interest rate on FlexDirect current account balances. The rate is available for new accounts on balances up to £1,500 for the first 12 months, so you’d earn £75 if you had at least £1,500 in your account for the whole year.

Nationwide is also worth considering for its switch offer it’s currently running – you must switch at least two direct debits, pay in at least £1,000 and make a debit card payment within 31 days of opening the account or applying to switch.

You can get the introductory interest by: 

• Opening a new FlexDirect account (you won’t get the boosted rate if you’ve received it or had a FlexDirect account before).
• Paying in at least £1,000 a month.

We like: Nationwide also pays 1 per cent cashback for 12 months on qualifying spends using your FlexDirect debit card, up to £5 a month. In recent years, qualifying current account customers have benefited from the £100 Fairer Share payouts, which aren’t guaranteed but have been a much-loved bonus. Britain’s biggest building society has also promised to keep branches open – and in many places where rival banks have shut it has the last branch in town.

Watch out for: Interest drops to zero if your monthly deposit into your account is less than £1,000. The interest rate also plummets after the first year to 1 per cent variable, so you should consider moving your money elsewhere after the introductory period is up. To get the switch offer, you can’t have received a switch incentive from the bank since 2021.

Support: Nationwide is worth considering for in-person banking – it’s promising to keep all its branches open until 2028.

2. Kroo: 2.9% on your balance 

Kroo is a new challenger bank that’s offering 2.9 per cent interest variable on balances up to £500,000.

You can get the interest by: 

• Opening a current account by downloading the Kroo app on your mobile phone.
• Kroo tracks its interest rate at 1.1 per cent below the base rate. 

We like: There are no particular hoops you need to jump through to get the interest. You can use your debit card for free abroad.

Watch out for: Kroo is a new bank and some may prefer to go with established names. That being said, your money’s protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). You should also keep in mind it’s app-based, similar to Monzo and Starling.

Other banks to consider for in-credit interest

Santander Edge Up: Santander pays monthly interest of 2.5 per cent variable on balances up to £25,000, but this is a rewards account that charges £5 a month.

Zopa Bank: Zopa’s current account – called Biscuit – offers 2 per cent on your balance. We like that it’s uncapped and fixed for 12 months. But after that it’s variable. It also has an enticing 4.75 per cent easy access savings rate for 12 months, but you have to pay in at least £500 a month into Biscuit to access this rate.

Best bank accounts for cashback

Unfortunately, many banks have been making their cashback deals far less attractive, with both Chase and Santander restricting eligible transactions. However the below options are still available.

1. Chase: 1 per cent cashback a month up to £15

Chase is part of US financial giant JP Morgan and launched in Britain in 2021. It’s offering 1 per cent cashback up to £15 a month on groceries, public transport and fuel and EV charging for the first year.

You can get the cashback by: 

• Opening an account as a new customer and using your debit card to spend on eligible categories.
• After your first year you can continue to earn cashback but you must pay at least £1,500 into your account each month.

We like: There are no fees for using your debit card abroad and no monthly fee. You can also open a boosted savings account that pays a 2 fixed interest rate boost for your first year, on top of the standard variable rate, currently 2.5 per cent – making the boosted rate 4.5 per cent.

Watch out for: Chase is a digital-only bank that requires an app to join, so it’s worth looking elsewhere if you prefer to bank in-branch. Its cashback also used to be far more generous, offering 1 per cent on most debit card spending.

Chasing customers: Chase has attracted customers by offering cashback, but has made its offer less appealing recently.

2. Santander Edge Up: Up to £15 cashback available a month

Santander’s Edge Up account offers 1 per cent cashback on select household bills paid by direct debit, with up to £15 per month available – although there’s a £5 monthly fee.

You can get the cashback by:

• Paying by direct debit for household bills including council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages, with cashback capped at £15 a month.
• Paying £1,500 a month into the account and having two active direct debits.

We like: There’s no charge for using your debit card abroad and you can get 2.5 per cent interest variable on balances up to £25,000.

Watch out for: The £5 monthly fee, plus keep in mind that most customers won’t get close to the potential £15 a month. They would need to spend at least £1,500 a month on eligible monthly bills paid by direct debit.

Money spinner: Santander is offering cashback on household bills.

A good option for completely digital banking 

The rise of digital-first challenger banks has given customers far more choice over where to keep their money.

1. Starling Bank: voted great for customer service

Starling Bank is an online-only challenger bank that was recently voted the second-best British organisation for customer satisfaction, behind First Direct. It launched in 2014 and has grown substantially since then.

We like: You can get a linked easy access savings account that offers 3 per cent interest variable on your money. There are no fees for using your debit card abroad and Starling says it offers 24/7 support from a human UK-based customer service team. The app offers useful tools such as automatically saving spare change and bill split features.

Watch out for: There are no physical branches, so if you prefer in-person banking then you should look elsewhere.

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