What is the best current account in the UK?

The current account is a type of bank or financial account that allows you to pay bills, transfer funds between accounts, and withdraw cash from ATMs. These are the most typical type of bank account someone will have, usually paired with a debit card to access funds within the account.

These types of accounts are also required for you to setup direct debits or standing orders with companies in order to continuously pay bills as required. Actions like these may have different charges for these actions so it's worth taking note as what works best for you may be different then our top pick.

What is a Current Account?

A current account is an account where you can make payments on your behalf without having to pay any fees. You'll typically use this type of account when you're paying monthly bills such as rent or mortgage repayments, utility bills or credit cards. In some cases you might even be able to set up automatic payments through this type of account.

You can open a current account online via banks and building societies. It's important to remember that not all current accounts are created equal. Some banks offer better rates than others, but they don't necessarily offer the same features. We've listed the best current accounts below based on their interest rate, ATM withdrawals, overdrafts, and more.

It is also important to note that our list here is very small and there are many more options available where some may suit your needs better then others. For example there are current accounts offered by Lloyds bank, Virgin Money, the Bank of Scotland etc.

The benefits of Switching Your Current Account

There are many reasons why switching your current account could be beneficial. For example, if you're looking to switch because you want to earn more interest on your savings, this would make sense. However, there are other reasons too:

• You can get better deals on insurance by switching to an insurer who has lower fees
• It could help you save money on utility bills by switching to a cheaper provider
• If you’re moving abroad, you might need to open a new current account to avoid losing all of your money when you move back home

If you're looking to switch your current account because you want to earn higher returns on your investments, then it's worth considering whether you should invest directly into a high-interest investment product instead. This will allow you to benefit from the best rates available without having to pay any fees.

Top 5 Current Accounts UK

1. Monzo Bank

Monzo is one of the newer entrants into the current account market but they've made quite a name for themselves since their launch. They offer several features for there customers not found elsewhere such as free unlimited ATM withdrawals, no monthly fee, and no minimum balance to start earning interest and of course direct debits can be set up.

They also offer free withdrawals abroad up to a certain amount. This makes the card a great choice for those travelling overseas often. Monzo is FSCS protected up to values of £85,000 per person so you can be assured your money is safe in the case of something going wrong.

Monzo also offers loans and overdrafts for there customers directly though there app where you can apply for them online without visiting a branch. You are also able to check eligibility without affecting your credit score. Another great feature Monzo offers in the event that you lose your card, is you can freeze your card with one simple tap. Let's say you find your card again, well just unfreeze the card with another tap.

Monzo also has a nice feature that they call 'Pots'. The Monzo Pots allow a customer to categorise their money into pots which they can allocate how much they wish. So for example, you can have a pot for travel, another for eating out, and a third for saving. Each pot earns interest at different rates depending on what type of pot it is.

2. Starling Bank

The Starling bank is also another somewhat new bank on the scene. They, similarly to monzo, offer all of there services directly through the app. They have won Best British Bank for 4 years in a row which attests to their great performance.

Starling bank offers some unique features including the ability to pay your bill using your phone number instead of having to remember the pin code. The app also lets you set up alerts to notify you when your balance drops below a specific value.

Starling also provides two options for current accounts. They provide a personal current account or you can opt for their business and sole trader accounts.

Similarly to Monzo, Starling bank has a feature similar to Pots. Starling calls their feature spaces which also allows customers to categorize their money into different categories for better organisation of their finances.

3. Nationwide Building Society

Nationwide Building Society (NBS) was founded in 1835 and is the oldest building society still operating today. NBS is based in the United Kingdom and operates under the Financial Services Authority.

NBS offers a range of products from personal accounts to mortgages and investments. Their personal current account comes with a free debit card and mobile wallet. There are no charges for opening an account either.

One of the best things about NBS is the fact that they don't charge any fees for transactions done over the counter. You will however need to use either your debit card or a cheque book to make payments. If you do choose to go this route, then you will need to visit a branch to get a chequebook as opposed to being able to do it online.

Nationwide offers a reward on their current accounts so that when you switch to them from your current provider, you could receive up to £125.

4. HSBC

HSBC is one of the largest banks in the world. It was founded in 1865 and is headquartered in London, England. HSBC currently operates in over 200 countries and territories around the globe.

HSBC offers several different types of current accounts for their customers including standard, advance and premier which each have their own perks. In addition, they also offer current accounts for students and graduates which also provide account specific perks. 

Finally, for those who may have children between the ages of 11 and 17, you can opt for your child to have a children's bank account. This will allow them to make payments and withdraw funds easily while also having access to a linked savings account to begin building good savings habits.

5. Barclays

Barclays is yet another large bank in the United Kingdom. It was founded in 1896 and is headquartered in London. Barclay's has been around for a long time and continues to grow.

Barclays offers many different types of current accounts. They include: Standard Account, Business Account, Premium Account, and Premier Account.

Standard Account - This is the standard current account option with Barclays which has features such as an optional overdraft, rewards for banking and access to the Barclays app

Premier bank account - For those who make over £75,000 or have £100,000 saved or invested with Barclays will have access to this account. Gain a dedicated team of financial guides and access to 24/7 servicing support as well as exclusive rates on premier mortgages and savings accounts.

Summary

There are five major providers of current accounts in the UK. Each of these providers offer something slightly different but all come with their own pros and cons. Some of the more notable differences may result in one of the bank accounts listed being better for you then our top pick.

Also remember that the banking space is constantly evolving and banks always have new offers to entice you to switch over to a different provider. Keep an eye out for new offers and see what works best for you as there are many different options available for bank accounts in the UK.

I am not a financial advisor, everything I say in my blog is of my own option ion. Be sure to do your own research and contact a financial advisor if you are unsure on any financial decisions.

I hope you enjoyed this article. If you did then please consider leaving a comment down below or sharing the post on social media.

Thanks for Reading 😁

FAQ

How to choose a current account

Now that you've got some idea of what current accounts there are to choose from, you'll have to determine which is the best current account for you. This will of course depend on your personal circumstances. If you're often overdrawn, you'll likely be drawn to an account with overdraft facilities. If you never go overdrawn, on the other hand, you might want to take advantage of a high interest current account instead.

Source: (moneyfacts.co.uk)

Should I get a savings account or a current account?

There is a different purpose for a savings account to a current account. A current account has more functions than a savings account, designed to facilitate your day to day needs to pay bills and pay for goods and services. Whereas a savings account is designed to help you build deposits over time and reward your efforts in interest.

Source: (moneyfacts.co.uk)

What is a basic bank account?

Basic bank accounts are designed for people who don’t qualify for other types of current account because they have a poor credit history.

Source: (which.co.uk)

How can I switch my current account?

You can switch your current account yourself by contacting your old bank to close your account after opening a new one. However, this can be fiddly, and you’ll have to remember to transfer all your existing outgoing payments manually.

Source: (nerdwallet.com)

How do I open a current account?

To open a current bank account, first identify the best one for you. Then get in touch with the bank that provides it. They’ll check your credit history, as well as asking you for proof of identity and address. Documents such as a driving licence, passport, birth certificate, council tax or other utility bill, can cover this, but make sure you check what the bank specifically requires.

Source: (nerdwallet.com)