Advertiser Disclosure

Best Current Accounts Of July 2022

Contributor, Editor

Updated: Jul 5, 2022, 11:06am

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

When it comes to current accounts, many of us remain attached to the one we signed up to years ago. But, these days, there’s a much wider range of accounts to suit various purposes. Some banks will even pay you to switch.

We carried out some research (July 2022) into the best current account deals on the market, which we’ve listed below. Find out more about the ones we chose and why in our methodology section.

Bear in mind that, in most cases, opening a new current account requires a credit check. If you are unsure of your credit score, it’s good practice to check it first.

Guides To Banking & Savings

Best Current Accounts

Best for switching bonus

first direct 1st Account

Key perks

£150 to switch current account

(£20 to open current account)

Monthly fee

£0

Customer service score*

74%

Representative Example

If you use an arranged overdraft of £1,200, the first £250 will be charged at 0% variable EAR (Equivalent Annual Rate). EAR is 39.9% variable thereafter, giving a representative APR 39.9% (variable). Subject to financial status.

Key perks

£150 to switch current account

(£20 to open current account)

Monthly fee

£0

Customer service score*

74%

Representative Example

Why We Picked It

If you make a full switch of your current account, via the Current Account Switch Service, to first direct’s 1st Account and deposit £1,000 within 3 months, the bank is currently offering a £150 welcome bonus, with the cash paid within 28 days.

Even if you just open a 1st Account and don’t make the full switch, there’s a £20 cash offer if you log into the app or online banking within 3 months of opening the account.

Both offers are strictly subject to status, however, which means you may be turned down. You’ll need to be a new customer to qualify. This means you have not opened an HSBC current account on or after 1 January 2019.

There’s also the potential for an interest-free overdraft facility of £250, again subject to status, while first direct is renowned for its top customer service with a Fairer Finance score of 74%.

An alternative current account worth looking at for its switching bonus is Nationwide’s FlexPlus. Make full switch, along with at least two direct debits, and you can get £125 if you’re already a Nationwide customer or £100 if you’re not (subject to status and as a time-limited offer).

Pros & Cons

£150 welcome bonus for full switch
£20 welcome bonus for opening account
First £250 overdraft interest-free
Access to a Regular Saver Account paying 3.50% AER (gross)
Top customer service

Need to be a new customer to qualify
Offers and overdraft facility subject to status

Best packaged account

Nationwide FlexPlus account

Key perks

Family worldwide travel insurance/ Family mobile insurance UK/ Europe breakdown cover

Monthly fee

£13

Customer service score*

69%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the Equivalent Annual Rate of 39.9% (variable). Representative APR 39.9% (variable). Subject to financial status.

Key perks

Family worldwide travel insurance/ Family mobile insurance UK/ Europe breakdown cover

Monthly fee

£13

Customer service score*

69%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the Equivalent Annual Rate of 39.9% (variable). Representative APR 39.9% (variable). Subject to financial status.

Why We Picked It

For £13 a month, the FlexPlus account from Nationwide throws in a lot.

In addition to worldwide travel cover for the family (which includes winter sports, golf, weddings but is capped at a maximum age of 69), the account offers free family mobile phone insurance and breakdown cover in the UK and Europe (terms and conditions apply).

The account is overseas-friendly with no foreign transaction fees for using your card or withdrawing cash abroad.

You can withdraw up to £500 a day on your card, and it’s available as a joint as well as single bank account.

If you switch your existing current account Nationwide’s FlexPlus (with at least two direct debits) you can get £125 if you’re already a customer, or £100 if you’re not (time-limited offer).

Nationwide has a high customer service score of 70%.

Pros & Cons

£125/ £100 (member/ non member) for full switch
Free insurances and breakdown cover
No overseas transaction charges

Overdraft charged at 39.9% AER
Travel insurance comes with age restrictions
No cashback or rewards

Best for app

Starling Bank

Key perks

Instant payment notifications/ Smart budgeting tools

Monthly fee

£0

Customer service score*

76%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the Equivalent Annual Rate (EAR) of 15% (variable). Representative AER 15% (variable). Credit subject to financial status.

Key perks

Instant payment notifications/ Smart budgeting tools

Monthly fee

£0

Customer service score*

76%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the Equivalent Annual Rate (EAR) of 15% (variable). Representative AER 15% (variable). Credit subject to financial status.

Why We Picked It

Being a fully-fledged digital bank, you can set up a Starling current account entirely from your phone in around five minutes.

Once up-and-running, you can carry out all your banking admin in the app such as change your address, cancel your card, and set up new accounts.

The app’s spending alerts help with budgeting while virtual piggy banks that automatically round up what you spend and stash the rest present an effortless way to save.

There are no fees for using your Starling account abroad while overdraft charges at 15% AER are very competitive in comparison to the rest of the current account market. The account even pays a little on credit balances too.

Starling also comes with a great 75% customer service score.

For app-based accounts, Monzo is another contender to consider.

Pros & Cons

Digital alerts and tools to keep spending on track
No overseas transaction fees
Low overdraft charges

No cashback or rewards
£300 a day maximum cash withdrawal

Best for overseas use

Metro Bank Current Account

Key perks

No foreign transation/ Cash withdrawal charges in Europe/ No monthly fee to operate account

Monthly fee

£0

Customer service score*

69%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the equivalent annual rate of 34% (variable). Representative APR 34% (variable). Subject to financial status.

Key perks

No foreign transation/ Cash withdrawal charges in Europe/ No monthly fee to operate account

Monthly fee

£0

Customer service score*

69%

Representative Example

If you use an arranged overdraft of £1,200, you’ll be charged the equivalent annual rate of 34% (variable). Representative APR 34% (variable). Subject to financial status.

Why We Picked It

If you are looking for a current account without a monthly fee that’s good for overseas spending, this one from Metro Bank doesn’t charge foreign transaction fees or for cash withdrawals within Europe. For the rest of the world, there’s a charge of 2.99% and 2.99%+£1.50 respectively.

If you are happy to go 100% digital, other current account options to consider for overseas spending include Monzo and Starling banks.

And bear in mind that, while Nationwide FlexPlus doesn’t levy foreign transaction fees anywhere in the world, it levies a month £13 fee.

Pros & Cons

No foreign transaction/ cash withdrawal fees in Europe
No monthly fee to operate account
Branch access

Foreign transation/ cash withdrawal fees charges apply outside Europe

Best for overdrafts

Barclays Premier

Key perks

Up to first £500 overdraft interest-free

Monthly fee

£0

Customer service score*

65%

Representative Example

0% interest (variable) payable on arranged overdrafts up to £500. If you use an arranged overdraft of £1,200, you’ll be charged the equivalent annual rate of 35.0% (variable). Representative APR 19.5% (variable). Subject to financial status.

Key perks

Up to first £500 overdraft interest-free

Monthly fee

£0

Customer service score*

65%

Representative Example

Why We Picked It

The overdraft on Barclays Premier is interest-free up to the first £500 for eligible applicants and charged at a relatively competitive 35% AER (variable) thereafter.

However, while the current account is free to set up (which you can do through the app) and there is no monthly fee, you will need to earn an annual salary of at least £75,000 or have £100,000 in savings held with Barclays to apply.

The account offers access to Barclays Avios Rewards* which can be redeemed against the cost of flights with British Airways. But if you want this perk, there is a monthly account fee of £12.

Other options to consider include first direct’s 1st Account which is interest-free to the first £250 with no monthly fee (subject to status).

*Earn 25,000 Avios joining bonus by joining Barclays Avios Rewards within 4 months of opening your first Barclays current account. Then, you’ll need to complete a full switch of your old current account to Barclays, using the Current Account Switch Service within 3 months of joining Barclays Avios Rewards. You will then receive your joining bonus in the fourth month of Barclays Avios Rewards membership.

Pros & Cons

Up to £500 interest-free overdraft (eligibility permitting)
Daily cash withdrawals up to £1,000
Access to Barclays Avios Rewards for £12 a month

Minimum salary of £75k or £100k in savings to apply
Monthly fee to access some account benefits

Best for basic banking

Co-operative Cashminder

Key perks

Open from age 16/ No credit check/ Can apply if been bankrupt

Monthly fee

£0

Customer service score*

66%

Key perks

Open from age 16/ No credit check/ Can apply if been bankrupt

Monthly fee

£0

Customer service score*

66%

Why We Picked It

This basic bank account from the Co-operative Bank, for first-time account holders with no credit history, or for those with a low credit score, does what it says on the tin.

But there are still perks. including an minimum age of 16 (not 18) to open the account, access and use online or from your phone. The cash card is PVC-free VISA debit card while you’ll also be able to make payments using Apple Pay, Google Pay or Samsung Pay.

As a provider, the Co-operative Bank has a good provider customer service score from Fairer Finance.

Pros & Cons

Open from age 16
Open in branch or online
Available as joint account
Use with Apple Pay, Google Pay or Samsung Pay

£250 daily cash withdrawal limit
No overdraft facility

*Fairer Finance data, July 2022

What’s our methodology?

With such a wide range of current accounts available, we’ve looked at what we believe to be the frontrunners for any given purpose. For example, best for switching welcome bonuses, best for packaged (‘paid for’ accounts), best for app-use, best for using overseas, best for overdrafts and best for basic accounts.

We also considered the customer service score of the current account provider, as determined by independent financial data provider, Fairer Finance.

Where there could be alternatives, these are mentioned in the ‘Why We Picked It’ column.

All the accounts listed are available as single and joint accounts.

The key perks listed are for eligible customers only, based on circumstances. While information was correct at the publication date, deals can change.

Current accounts: what’s the latest?

Current accounts are the staple of our day-to-day finances. These days, there’s a much bigger emphasis on digital banking and apps. But, even though the technology offered by newer start-ups and fintech companies may have changed the way current accounts look and feel, the fundamentals remain the same.

A current account is designed to receive your wage, handle your day-to-day spending, and offer direct debit services so bills can be paid.

Even if you use a digital device to pay, current accounts usually still come with a debit card, these days increasingly made from more ethical materials than PVC plastic.

There are different types of accounts to suit different needs, as we set out in our rankings above.

Switching current accounts

Many of us remain wedded to the current account we signed up to years and years ago, even though it no longer offers good value.

One of the reasons we stay put is because of the perceived hassle attached to moving. But thanks to the free-to-use Current Account Switch Service (CASS), switching is actually a simple process.

The new bank will do all the hard work for you, transferring direct debits and standing orders across to the new account – and within a maximum of seven working days.

The new bank will also give you a closure instruction to sign, allowing it to start the process. It’s then down to you to choose a switch date on which your old account will be closed and your new account will be ready to use.

The CASS guarantees to correct – and refund – anything that goes wrong. What’s more, some accounts come with freebies to try and persuade you to make the switch. As well as cash incentives, sweeteners can include vouchers, gift cards, and cashback on spending.

How to open a current account

Almost all current accounts can now be opened online – though it is still possible to open one by visiting a branch.

You will need to provide personal information, such as your full name, date of birth, and proof of ID.

If you are applying to a ‘digital-only’ bank, you can apply via the bank’s app, through which you may also need to upload photographs of your documents. You may also be required to provide a video of yourself to check it matches the photos.

Once your application has been accepted, you will then be sent your debit card and pin number – separately.

FAQs

How much money do I need to open an account?

You may be able to open a current account with as little as £1. But with certain accounts – including high-interest accounts – there may be additional restrictions, such as paying in a minimum amount of cash each month. There may also be direct debit conditions. Be sure to check the Ts and Cs to ensure you are eligible.

Will I get an overdraft?

An overdraft is not a given. You will need to apply for one. The bank will then look at your circumstances and let you know if you can have one – and how much you can borrow.

Be sure to find out about the rate and charges – and check that the new bank will offer you the same limit as you currently have, without levying higher costs for using it.You don’t have to take an overdraft even if one is offered with the account.

Overdraft rates are expressed as an ‘EAR’ (equivalent annual rate). This is a representative rate which shows how much you’d pay if you stayed overdrawn on your current account for a year.

Basic bank accounts don’t come with overdraft facilities.

What pitfalls are there?

If an account levies a monthly fee, you need to understand exactly what you will get in return. You also need to be sure you’ll make use of the benefits offered to make it worth paying the fee.

You must not get blinded by incentives, as it’s the overall package that you need to weigh up – including the cost to borrow using an overdraft. You need to compare the whole deal carefully before committing to move.

Also watch out for accounts which charge for ATM cash withdrawals or transactions overseas, as if you spend abroad, this could prove costly.

Further, if the account comes with a linked savings account, be sure to check the Ts and Cs, as there may be a maximum you can pay in each month.

How do I find out about customer service?

Before moving to a new account, it’s important to find out about customer service. Providers may claim to offer ‘superior service.’ But do all the research you can online by reading reviews and checking out forums to see if this actually plays out in practice. We’ve added customer service scores from Fairer Finance.

What should I look for in a current account?

Check if the account comes with a function where you can freeze and unfreeze your debit card online. That way, if you misplace your card, you can cancel it, but then activate it again if you subsequently find it.

Also see if the account offers anti-fraud measures, such as ‘Confirmation of Payee’ which checks the name you are sending money to when making a transfer.

Find out if the account offers a facility which rounds up change from purchases and automatically sweeps that cash across into a separate savings pot.

How can I find out what the app is like before I switch?

These days, most banks have an app, but functionality can vary. Some apps will offer spending notifications and alerts to help you with your budgeting. Others might offer round-the-clock access to live chat with customer service staff.

Read reviews online to check the app is user-friendly. See if there are complaints about an app constantly being fixed due to technical issues.

How is my cash protected?

Eligible deposits in your current account will be protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS) if your bank goes bust.

Note, though, that the scheme only covers banks. If your money is with a provider which offers digital banking – but which isn’t actually a bank – you won’t benefit from the FSCS safety net. Be sure to check.

Guides To Banking & Savings

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Esther Shaw Contributor

Esther Shaw is Forbes Advisor UK’s go-to for property and mortgages, although she writes across all areas of personal finance for the national press and other online and print publications. She is also a media commentator.

Laura Howard Editor

I've been involved in personal finance and property journalism for the past 20 years, editing websites and writing for national newspapers. My objective has always been to offer no-nonsense information to readers that either saves or earns them cash.