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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 doesn't cover every current account available.

Switching offers

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 were offering, or have recently offered, switching incentives when we checked on 1 September 2026 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.

Accounts with 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:

Accounts that pay interest

Savings rates on the best savings accounts and current accounts vary between providers and change frequently.

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

Fee-free spending abroad

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.

Student 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. Examples of accounts with these features:

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. Many accounts have no 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 use switching incentives to attract new customers, who may later take out other products such as loans or mortgages. The Current Account Switch Service handles the move of payments and closure of the old account.

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.

Packaged accounts charge a monthly fee for their bundled insurance and other benefits. Whether that's cost-effective depends on whether the included cover would otherwise be bought separately, and at what price.

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.

Headline rates on current accounts often apply only to limited balances or require conditions such as a minimum monthly deposit.

While you shouldn't disregard high interest bank accounts, it's worth looking at the best savings accounts to compare options - especially for larger savings amounts.

What is a bank account for overseas use?

Some credit cards also charge no fees on non-sterling spending; see our travel credit cards guide. These are specialist types of credit cards with various travel-related perks; some do not charge you fees 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 is also an 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.

A hard search from a bank account application can be seen by other lenders for 12 months, which may be relevant if you're planning a larger credit application such as a mortgage.

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. Getting multiple switch bonuses. Switching offers can be claimed more than once across different banks, subject to each offer's eligibility rules (many exclude previous customers or switches from the same banking group). Some people open a separate account for this purpose rather than moving their main account.

4. Fee-paying reward accounts: compare the fee with the expected rewards. 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. Switching offers usually set conditions, such as a minimum monthly deposit or number of Direct Debits. Each offer's terms set out what counts towards these conditions.

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?

Opening a new current account often involves a hard credit search, because many accounts come with an overdraft. A hard search stays on your credit file for 12 months and can be seen by other lenders. One search on its own usually has a limited effect. Several applications in a short period, whether for bank accounts or other credit, may affect how lenders view future applications. This can be relevant for anyone planning a larger credit application, such as a mortgage, in the coming months. Some banks use a soft search when you apply, which doesn't show to other lenders; the account's application page usually says which type of check applies.

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 a limit agreed with your bank in advance; interest is usually charged on the amount borrowed, though some accounts include a 0% buffer. An unarranged overdraft is when you spend beyond your balance or arranged limit without agreement. Since April 2020, banks can't charge higher prices for unarranged overdrafts than for arranged ones, but payments may be refused.

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.