The best bank accounts: Banks that offer cash for switching, interest on your balance and cashback
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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.
Savvy customers should 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 Santander, First Direct and Nationwide available.
Nationwide has also paid out £100 in bonuses to qualifying members with current accounts for the past three years – and is promising to keep its branches open.
Some banks have competitive linked savings rates. Starling pays 2.5 per cent and Monzo pays 2.75 per cent for linked instant access savings, while Chase pays 2.25 per cent – but this is 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
| Account | Perks | Conditions | Overdraft |
|---|---|---|---|
| Barclays Bank Account + Blue Rewards | Apple TV+. Cashback at popular retailers. 4.21% Rainy Day Saver. | £5 monthly fee to join Blue Rewards and you must pay in at least £800 in monthly. | 35% |
| Chase | 1% cashback on eligible purchases (groceries, transport, fuel) for 12 months, max £15 a month. Fee–free spending abroad. Access to linked easy–access savings paying 2.25% (4.5% with boost for 12 months). Round–ups option for spare change pays 5%. | None required. You have to use the app. No branches. | N/A |
| Club Lloyds | Pays 1.5% in–credit interest on up to £4k, and 3% on £4k–£5k. Choose a reward each year from either 12 months Disney+, six cinema tickets, an annual digital Coffee Club and Gourmet Society membership or an annual magazine subscription. Fee–free spending abroad. | £5 monthly fee unless you deposit £2,000 a month into the account. Interest paid when paying two direct debits each month. | £100 interest free. 29.9% variable after. |
| First Direct 1st Account | £175 switching bonus. £250 interest–free overdraft. Earn 7% via Regular Saver Account. | Within 45 days pay in £1,000, switch at least two direct debits and use debit card five times. You have to log on to digital banking. No branches. | £250 interest free. 39.9% variable after. |
| Kroo | In–credit interest paying 2.65% on balances up to £500k. No fees when spending abroad. | Online and smartphone–only bank. | 39.9% |
| Monzo Bank | Linked instant–access saver paying 2.75%. Fee–free spending abroad. Instant spending notifications. Cashback at select retailers. | Online and smartphone–only bank. | 19%, 29% or 39% depending on credit score. |
| Nationwide FlexDirect, FlexPlus, FlexAccount | £175 switching bonus. FlexDirect: New customers get 1% cashback up to £5 a month, and 5% interest on balances up to £1,500 for the first year which drops to 1% after. | Move over two direct debits for switch bonus, plus pay in at least £1,000 and make one debit card payment. FlexPlus: £18/month fee. | £50 interest free, 39.9% above |
| NatWest Reward* & RBS Reward account | £150 bonus, plus 7% on regular saver for a year for switching. £5 a month back in rewards. Digital Regular Saver pays 7% on first £5,000 (can only pay in up to £150 a month). | £2 monthly fee. Must set up two direct debits a month for £4 bonus, and then log into mobile banking once a month for £1 bonus. You must pay in £1,250 minimum each month – and pay this in within 60 days of switching for £150 bonus, as well as log in to mobile app. | 39.49% |
| Santander Edge Up account | £200 switch bonus + potential £25 Amazon gift card. Pays in–credit interest of 2.1% on up to £25k. Santander pays 1% cashback a month on select bills up to £15 monthly. No charge for using your debit card abroad. Cashback at retailers with Santander Boosts. | £5 a month fee. You must pay in £1,500 a month and have two active selected direct debits. To get switch bonus, you must complete switch within 60 days of request. £25 Amazon gift card available through price comparison sites. | 39.94% |
| Starling Bank current account* | 2.5% linked easy–access savings. Fee–free spending and ATM withdrawals abroad. | Online and smartphone–only bank | 15, 25 or 35% depending on credit score. |
| Triodos Bank | Promises only to lend on projects that make a positive impact for people and the planet. | £3 monthly fee. | N/A |
| Zopa Bank | 2% interest on current account balances fixed for 12 months (uncapped). 7.1% regular saver, 2% cashback on bills (only up to £30 a year) | Online and mobile app only. | N/A |
Best bank switch offers
1. Santander: £200 switching bonus plus possible £25 Amazon gift card
Santander is offering one of the biggest switch bonuses, so it's worth considering if you haven't taken a bonus from the bank before. It's currently possible to get a £25 Amazon gift card too, if you open through a comparison site like Moneysupermarket* or Compare the Market. To get the gift card, you must make five debt card transactions within 30 days of the switch.
Some Santander accounts pay cashback on select household bills, such as payments to BT or British Gas.
You can get the bonus by:
- Opening one of four eligible current accounts, including the Santander Everyday account and Edge account.
- Switching using the Current Account Switch Service, along with two or more active direct debits and paying in £1,500, with the switch completing within 60 days of the request.
- You'll get the £200 around 90 days after your request to switch.
You won’t be eligible if: You’ve had a switch bonus from Santander before, or held a Santander current account on 1 January 2025.
We like: Both Santander Edge and Edge Up pay cashback on select household bills, up to £10 and £15 respectively.
Watch out for: The monthly fees on all current accounts, apart from the Everyday account. Your direct debits also have to be eligible ones from a select list of household options to qualify for the bonus. You won't get the bonus until 90 days after the request to switch.
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: £150 switch bribe plus access to a 7% bonus regular saver rate
Natwest has launched a new switch deal that's currently set to close on 28 May.
You can get the bonus by:
- Applying for a Select or Reward current account and requesting to switch by 28 May – the switch must complete by 16 June.
- Paying in £1,250 within 60 days of switching, which can be made of multiple payments.
- Logging in to Natwest's mobile banking app.
You won't be eligible if: You're switching from a current account that's from the Natwest group – essentially a Royal Bank or Ulster Bank NI current account.
We like: As well as the £150 bribe, Natwest will give you boost your regular savings rate to 7 per cent for 12 months if you open its regular savings account by 16 June. You can only save up to £150 a month into the account, however.
Watch out for: Natwest is one of the major banks that's set to close more branches, so check the status of your local one.
NatWest: The bank offers competitive switching bonus when you open a regular savings account too.
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. The offer's set to close on 4 March.
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: 2.65% on your balance
Kroo is a new challenger bank that’s offering 2.65 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 £120,000 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 2.1 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.
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 2.25 fixed interest rate boost for your first year, on top of the standard variable rate, currently 2.25 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 2.1 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 2.5 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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