What are the best bank accounts?

Banks compete for new current account customers with switch bonuses, ongoing perks, and interest-bearing balances. This guide covers the main types of account and what to look for in each.

This guide covers switch bonuses, ongoing perks, and interest-bearing accounts.

Best bank accounts offering cash for switching

Banks compete for new customers by offering cash bonuses to switch, using the Current Account Switch Service (CASS) — a free, 7-working-day process that moves your balance, Direct Debits, and standing orders, and automatically closes your old account. Recurring card payments (subscriptions, for example) aren't moved automatically and need updating separately.

Switch bonuses typically require a full switch from a different banking group, at least two active Direct Debits, and sometimes a minimum deposit or number of card transactions within a set window — always check the exact requirements before switching, since missing one step can mean losing the bonus entirely.

A check of provider websites (list below) on 01 September 2026 found that switch bonuses across the market generally range from around £125 up to £240, with some providers adding extras such as a linked regular saver, cashback, or ongoing interest on top of the headline cash amount. The specific amount, qualifying criteria, and offer end dates change frequently — sometimes within days — so check the current offer directly with each provider before applying.

Providers that regularly offer cash incentives to switch include:

• Santander

• HSBC

• First Direct

• NatWest

• Co-op Bank

• Nationwide

• Starling

• Barclays

Terms, conditions and eligibility criteria apply. Please be sure to read the details and qualifying criteria in full on the respective websites, as they include complete information and conditions there.

Best bank accounts for ongoing perks

If you're looking for a bank account with perks, consider one that pays cashback on bills or everyday spending. Alternatively, you may wish to explore a packaged bank account offering free insurance and other benefits. Here's a pick of the top accounts:

Best bank accounts for interest

Savings rates on the best savings accounts and current accounts have been falling, but if you are looking to earn interest in a current account, here are the top picks:

^Kroo pays a tracker rate at 1.10% below the Bank of England base rate.

Best bank accounts for overseas use

Many banks charge hefty fees when you use your debit card abroad, with overseas spending fees as high as 3% not uncommon. While a travel credit card is a straightforward solution, if you'd rather use a debit card, here's a pick of the best accounts that won't charge you for using your card abroad.

Best student bank accounts

If you're studying, you may qualify for a student bank account. These types of account typically offer student oriented perks, such as a decent 0% overdraft. Here's our picks:

Figures updated 2 September 2026. Rates, bonuses and terms are subject to change; always verify current details directly with each provider before applying. This article is for general information only and does not constitute financial advice.

What is a bank account?

A bank account allows you to deposit funds, and to send or receive one-off payments. A bank account also allows you to make regular payments, such as through direct debits or standing orders.

As many bank accounts offer overdrafts, most require applicants to pass a credit check. These checks are usually far less stringent than those performed for other types of credit, such as a credit card or loan, though being rejected for a bank account is possible.

The majority of UK bank accounts are fee-free, though some specialist accounts charge a monthly fee in return for perks - such as ongoing cashback or monthly travel insurance. Despite this, you can still grab a decent account even if you don't have the appetite to pay a monthly fee.

To understand which bank account may suit different needs, it's worth understanding the different types of bank account out there.

What are the different types of bank account?

Bank accounts come in various shapes and sizes. Some may offer generous 0% overdrafts, while others may offer ongoing perks or a cash bonus for switching. To help you decide which type to open, let's explore the different types of bank accounts:

What is a bank account with a switching offer?

Banks love new customers. When a bank expands its customer base, it has more opportunities to sell its own products - such as insurance, personal loans, or even mortgages. However, it's fair to say that much of the UK population is reluctant to move banks.

To encourage customers to act, many banks shamelessly offer newbies cold, hard cash in return for switching.

Switching accounts is far easier than it sounds. Thanks to the 7-day switch guarantee, the process shouldn't take longer than 7 working days. Under this scheme, your old account will be automatically closed for you, and any payments coming out of your old account, including standing orders and direct debits, will be transferred over. If mistakes occur, the switch guarantee ensures you won't suffer any financial loss.

What is a reward bank account?

A reward bank account refers to current accounts that pay 'rewards' to account holders each month. To earn this reward, you may be required make a set number of debit card transactions, or perhaps pay in a set amount into your account each month.

Instead of rewards, some bank accounts may pay cashback instead. Cashback may apply to everyday spending, or bill payments.

Bank accounts paying rewards or cashback can be a way to earn money back on spending, though the value depends on individual spending habits.

What is a packaged bank account?

Packaged bank accounts are accounts that offer perks. For example, free travel insurance, mobile phone and/or breakdown cover are typical perks on offer with these types of account.

Unsurprisingly, 'free' perks come at a price - usually in the form of a hefty monthly fee. Despite this, packaged bank accounts can be good value for some. However, if you're unlikely to use all of the included benefits, it's worth considering whether you'd be better off opting for a normal bank account instead. That's because if you need travel or breakdown cover, you can simply purchase these products separately.

When it comes to understanding the value of a packaged bank account, it really pays to do the maths before you apply.

What is a high interest bank account?

Some bank accounts pay a comparatively high interest rate on cash balances. If the rate is particularly good, the account may be considered a 'high interest' account.

When looking at interest rates on bank accounts, always take headline rates with a pinch of salt. That's because high interest rates on these accounts usually only apply to small sums. Also, some bank accounts will only pay interest to account holders who fulfill certain criteria - such as paying in a set amount into the account each month.

While you shouldn't disregard high interest bank accounts, it's worth looking at the best savings accounts to compare options - especially if you have lots of savings.

What is a bank account for overseas use?

If you're a keen traveller, do consider a top travel credit card. These are specialist types of credit cards, and the top-rated deals won't charge you for using them abroad.

However, if you'd rather not apply for a new credit card, or you'd simply prefer a debit card, then a bank account for overseas use can be a good option. These bank accounts don't charge for overseas spending or cash withdrawals.

Bank accounts: Five must-knows.

1. Many bank accounts require a hard credit check. When you apply for a bank account, you'll usually have to pass a credit check. While these checks are usually less stringent than checks required for a credit card or loan, they're still recorded on your credit file.

While you shouldn't be overly worried about these checks, if you're planning to make a big application for credit in the near future - such as a mortgage - you may wish to prioritise your credit application over switching banks.

It's worth knowing that some bank accounts conduct 'soft' credit checks when you apply instead of 'hard' credit checks. Unlike hard credit checks, soft credit checks aren't recorded on your credit file. Chase Bank and Starling are two providers that perform soft checks.

2. Cash in a bank is protected, up to £120,000. FSCS savings safety is very important. That’s because if your bank goes bust, you’ll get your money back - up to the £120,000 limit (For joint accounts, the limit is £240,000) per eligible person, per authorised firm.

Note: Some banks share FSCS protection with others, so this is something to keep in mind. For example, Halifax shares its FSCS savings safety protection with Bank of Scotland. As a result, savers holding more than £120,000 across these two providers would exceed the protection limit. If you’re unsure if your bank shares its savings safety protection the FSCS has a handy tool on its website.

3. You can grab multiple switch bonuses. If you're tempted by free cash, don't be ashamed to switch banks solely for the incentive. It's perfectly acceptable to switch bank accounts, grab the incentive and then move on to another offer. Just be mindful that you may have to wait a while in order to fulfill any switching criteria as part of the deal.

Note: If you want free switching cash but are happy with your current bank, there's nothing stopping you opening another account and using that account solely for switching. In other words, you can consider your second account as a way to bag free cash, without losing access to your 'main' account.

4. Reward bank accounts can be decent (but do the maths). If you wish to consider a bank account with a monthly fee, do the maths to calculate whether it's worth the expense.

For example, if you go for a bank account that offers cashback on bills, it's really important to understand how much cashback you're likely to earn each month. If the cashback earned exceeds the monthly fee, the account pays for itself. However, with low bills, cashback may be dwarfed by the fee.

5. There are other options available if you are ineligible for certain bank switching criteria. Banks often attach stipulations to their switching offers. For example, you may have to pay in a set amount into your account each month, or pay out a set number of standing orders.

Stipulations like these are common because banks want to ensure they pick up customers who are switching their main account. However, it is often possible to overcome them, even if you don't want to switch your main account.

For example, if a switch bonus requires a minimum pay in to qualify, you may be able to transfer money from another current account in your name. Once the money hits your new account, there's nothing stopping you withdrawing it straight away. Likewise, if a bank switch offer requires you to pay out two standing orders each month, you may be able to get around this rule by setting up two standing orders to another one of your accounts.

When it comes to meeting bank switch criteria, it's important to pay close attention to the terms and conditions of any offer.

FAQs

How many bank accounts can I have?

In general, there are no limits to how many bank accounts you can have. However, some banks will put a limit on the number of their accounts you can hold at any one time.

What is a basic bank account?

Basic bank accounts are designed for people who may not qualify for other accounts, but eligibility and checks (e.g. identity, residency, etc.) vary by provider.

Can switching banks harm my credit score?

Many bank accounts require you to pass a 'hard' credit check. This is recorded on your credit file, and usually stays there for six months or so. While this isn't much to worry about, if you're seeking to apply for credit in the near future, it can be a good idea to avoid applying for multiple bank accounts over a short space of time. Instead, prioritise your credit application, and then think about switching banks.

What is an overdraft?

An overdraft is a form of credit. You go into your overdraft whenever your bank balance falls into the red. Overdrafts can be arranged or unarranged.

An 'arranged overdraft' is when your bank gives you some sort of interest-free buffer should you exceed your balance. As a result, agreed, arranged overdrafts can give you some respite if you dip into the red. An 'unarranged overdraft' is when you exceed your credit balance, and you haven't agreed a 0% interest-free overdraft with your bank. Dipping into an unarranged overdraft is often a bad idea, as hefty interest usually applies.

If you often find yourself exceeding your balance, it's worth looking at bank accounts that offer a decent 0% overdraft.

How can I open a bank account?

The process of opening a bank account can vary between providers. Some banks will allow you to open an account online, or by mobile app. Others may allow you open an account over the phone, in branch, or even by post. To open a bank account you often have to pass a credit check.

Is my money safe in a bank account?

Eligible deposits with a UK-authorised bank are generally protected up to £120,000 per person, per authorised firm, under the Financial Services Compensation Scheme (FSCS), in the event the provider goes out of business. Whether a specific account and deposit qualify depends on eligibility rules, and some providers share a single authorisation, which can affect how much of your money is covered in total. The FSCS website has a tool to check current protection for a specific provider.

For providers without a UK banking licence, this protection doesn't apply. If you have cash in a non-UK account, a different country's deposit protection scheme may apply instead — for example, similar protections are common across Europe — but if a non-UK provider fails, recovering your money depends on that country's own scheme and government.

Do I need a bank account with a branch?

Online and app-only bank accounts have grown in popularity over recent years. This tells us that customers are seemingly becoming more comfortable with moving away from traditional banking. However, some customers may prefer to have access to a branch which they can visit in-person.

How do I deposit money if my bank has no branch?

Your local Post Office may allow you to deposit cash into an online or app-only bank account. That's because the Post Office has agreements with a number of UK banks allowing customers to complete basic banking transactions at their local branch.

What is a student bank account?

Student bank accounts are targeted towards students and are usually only available to those studying. Student accounts might offer perks attractive to students, such as 0% overdraft deals.

How can you close a bank account?

If you want to close a bank account, you may have to contact your provider directly. You might be able to do this online, though some banks might request that you visit a branch.

Alternatively, if you switch to another bank account using the 7-day switch service, your old account will be automatically closed for you. Given the fact that all payments will be automatically transferred over for you, switching accounts is probably the easiest way to close an old account.

How does a joint bank account work?

A joint bank account refers to a bank account in two names. Joint accounts are typically held between trusted partners, such as married couples.

What is a children's bank account?

A children's bank account is a current account aimed at under 18s. Interest rates on children's accounts can be quite generous, though are usually only offered on low amounts. Some children's bank accounts come with a 'cash card' which give young account holders the ability to withdraw cash at an ATM.

How easy is it to switch bank accounts?

The easiest way to switch bank accounts is to notify your new bank that you'd like to use the 7-day switch guarantee when you apply for your new account. Do this, and your new bank will move over your balance, plus any payments you have coming in and out of your account. Under the switch process, your old account will be automatically closed for you.

To switch account, you'll need to have the account number and sort code of the bank you wish to switch from.

Details correct as of 02 September 2026. Terms, rates and features are subject to change — always verify current details before applying. This article is for general information only and does not constitute financial advice.