Earn up to 5% AER on your cash!

Some of the best rates of interest you will get on cash currently are on current accounts. E.g Nationwide offer 5% AER fixed (4.89% gross pa) in credit interest on balances up to £2,500 for the first 12 months

You can also benefit from switching your account. A number of banks now offer switch incentives. HSBC are currently offering £150 if you switch your current account to them. The good news is that switching is a lot easier than it used to be – basically the new bank account provider will do all the work in setting up your direct debits and standing orders etc.

For students looking for a good account Santander UK are offering a free railcard for 4 years as long as you are 18 and are in or are about to enter into full time further education.

Offers

High Interest Current Account Offers

Account
first direct 1st Account
Interest Rate
Access to 7% AER/Gross on Regular Savings
Funding Required
No monthly minimum
Account Fee
FREE
Account
Chase Current Account
Features
1% cashback on your everyday debit card spending for your first 12 months. Cashback exceptions and limits apply. Plus access to a 4.1% AER easy access saver account
Funding Required
No monthly minimum
Account fee
FREE
Account
Santander Edge Up Current Account
Switch Offer
£185 cash when you switch to a Santander Edge Up current account
T&Cs apply
Funding Required
£1,500 per month
Features
3.50% AER (3.45% gross variable) on balances up to £25,000, and up to 1% cashback on household bills, supermarket and travel costs (exclusions apply)
Account Fee
£5 pm

SWITCH OFFER: £185 cash when you switch to a Santander Edge Up current account. T&Cs apply

Account
Santander Edge Current Account
Switch Offer
£185 cash when you switch to a Santander Edge current account
T&Cs apply
Funding Required
£500 per month
Features
Earn cashback every month on selected household bills and essential spend, plus get access to an exclusive savings account paying 7% AER
Account fee
£3 per month

SWITCH OFFER: £185 cash when you switch to a Santander Edge current account. T&Cs apply

Current Account Offers With Switching Incentives

Account
NatWest Select Account
Special Offer
£200 Switch Offer. T&Cs Apply*
Overdraft
Arranged Overdraft Available
Funding Required
£1,250 within the first month
Account fee
No fee

OFFER: Switch your current account to NatWest and you could earn £200 within 7 days of meeting eligibility criteria. T&Cs Apply* 

*Use the Current Account Switch Service to close your current account held elsewhere and switch to NatWest. Apply only or via the NatWest app only. Pay in £1,250 and log into the NatWest app within 60 days of account switching. NatWest will pay £200 into your open NatWest current account within 7 days of meeting this criteria. If you’ve previously received a switching incentive from NatWest Group (since 01/01/20), you aren’t eligible. You can only receive this offer once. Offer may be withdrawn or amended at any time Must be 18 or older and UK resident Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable Offer may be withdrawn or amended at any time
Account
NatWest Reward Account
Special Offer
£200 Switch Offer. T&Cs Apply*
Overdraft
Arranged Overdraft Available
Funding Required
£1,250 within the first month
Account fee
£2/ month

OFFER: You could get £200 and earn monthly Rewards if you switch to the NatWest Reward account. T&Cs apply*

*Use the Current Account Switch Service to close your current account held elsewhere and switch to NatWest. Apply only or via the NatWest app only. Pay in £1,250 and log into the NatWest app within 60 days of account switching. NatWest will pay £200 into your open NatWest current account within 7 days of meeting this criteria. If you’ve previously received a switching incentive from NatWest Group (since 01/01/20), you aren’t eligible. You can only receive this offer once. Offer may be withdrawn or amended at any time Must be 18 or older and UK resident Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable Offer may be withdrawn or amended at any time
Account
Royal Bank of Scotland Select Current Account
Special Offer
£200 Switch Offer. T&Cs Apply*
Overdraft
Arranged Overdraft Available
Funding Required
£1,250 within the first month
Account fee
No fee

OFFER: Switch your current account to Royal Bank of Scotland and you could earn £200 within 7 days of meeting eligibility criteria. T&Cs Apply*

*Use the Current Account Switch Service to close your current account held elsewhere and switch to Royal Bank of Scotland. Apply only or via the Royal Bank of Scotland app only. Pay in £1,250 and log into the Royal Bank of Scotland app within 60 days of account switching. Royal Bank of Scotland will pay £200 into your open Royal Bank of Scotland current account within 7 days of meeting this criteria. If you’ve previously received a switching incentive from NatWest Group (since 01/01/20), you aren’t eligible. You can only receive this offer once. Must be 18 or older and UK resident Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable Offer may be withdrawn or amended at any time
Account
Royal Bank of Scotland Reward Account
Special Offer
£200 Switch Offer. T&Cs Apply*
Overdraft
Arranged Overdraft Available
Funding Required
£1,250 within the first month
Account fee
£2/ month

OFFER: Switch your current account to Royal Bank of Scotland and you could earn £200 within 7 days of meeting eligibility criteria. T&Cs Apply*

*Use the Current Account Switch Service to close your current account held elsewhere and switch to Royal Bank of Scotland. Apply only or via the Royal Bank of Scotland app only. Pay in £1,250 and log into the Royal Bank of Scotland app within 60 days of account switching. Royal Bank of Scotland will pay £200 into your open Royal Bank of Scotland current account within 7 days of meeting this criteria. If you’ve previously received a switching incentive from NatWest Group (since 01/01/20), you aren’t eligible. You can only receive this offer once. Offer may be withdrawn or amended at any time Must be 18 or older and UK resident Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable Offer may be withdrawn or amended at any time
Account
Santander Everyday Current Account
Switch Offer
£185 cash when you switch to a Santander Everyday current account
T&Cs apply
Funding Required
No minimum
Features
The current account for your every day banking needs
Account Fee
No fee

SWITCH OFFER: £185 cash when you switch to a Santander Everyday current account. T&Cs apply

Account
Santander Edge Current Account
Switch Offer
£185 cash when you switch to a Santander Edge current account
T&Cs apply
Funding Required
£500 per month
Features
Earn cashback every month on selected household bills and essential spend, plus get access to an exclusive savings account paying 7% AER
Account fee
£3 per month

SWITCH OFFER: £185 cash when you switch to a Santander Edge current account. T&Cs apply

Account
Santander Edge Up Current Account
Switch Offer
£185 cash when you switch to a Santander Edge Up current account
T&Cs apply
Funding Required
£1,500 per month
Features
3.50% AER (3.45% gross variable) on balances up to £25,000, and up to 1% cashback on household bills, supermarket and travel costs (exclusions apply)
Account Fee
£5 pm

SWITCH OFFER: £185 cash when you switch to a Santander Edge Up current account. T&Cs apply

UK Current Accounts With Overdraft Facilities

Most current account providers will offer a overdraft facility with your current account but the fees charged can vary significantly from one bank to the next.

Some banks offer a no fee arrangement up to a set threshold and also may offer a interest free limit as well.

The fees charged for using a authorised overdraft limit can also vary as can the interest rate levied. the same can also be said of unauthorised overdraft use.

In recent years there has been pressure on banks and building societies to reduce their charges for current account banking. If you are looking to change your current account provider it can pay to shop around.

With the Bank of England Base Rate falling to historical lows over the last 5 years, there are not many current account providers who pay what you would call high interest on the account balance.

While the Base Rate increased last month by 0.25% banks are in no hurry to pass this rate rise onto customers.

Typically most banks and building societies pay either a nominal amount of interest or no interest at all.

Some providers will pay higher interest on the first say £1,000 held on the account, and then pay a much lower rate on money held over this amount.

Currently the highest paying interest current account in the UK presently is the Nationwide Flex Direct Account paying 5% on up to balances of £2,500. After a year the account drops to 1%.

You could also consider their FlexPlus Account which pays a lower 3% on or up to £2,500, but with the rate staying at that level. However to get this deal a monthly fee of £13 is charged for the privilege.

For savers with larger deposits of money Santander 123 Account pay 1.5% on balances up to £20,000 plus you get 3% cashback on household bills paid from your account. This account comes with a monthly £5 fee.

It is in August and September that UK Banks start to bring out their latest student current account offerings. Banks are understandably keen to get your business. Research shows that one you set up a current account you are unlikely to move it.

 

Your new bank is responsible for contacting you before the switch date if there are any hitches with transferring your standing orders and direct debits – and incoming payments.

And the switching service is covered by a guarantee: the new bank must refund you if there are any charges because payments didn’t go through on time.  But you have to ask them for this.

Yes – you can use the partial switch service and keep your old account open, transferring all or some of your payments. But the process isn’t covered by the service guarantee so it can take longer: possibly up to 20 working days. And there isn’t an automatic-redirect for the three years after you switch. A partial switch may not qualify for the incentives offered for switching (though that shouldn’t be the only reason why you change accounts).

Not all your regular bill payments may be made by direct debits or standing orders. Some service providers (such as telecoms services, online subscriptions, gym membership and payday loans) get you to set up a “recurring payment” or “continuous payment authority” which is linked to your debit or credit card

Because they’re linked to a card rather than directly to your bank account, they’re not included in the switching service (or covered by the guarantee).

It’s not always clear which are your continuous payment authorities: you won’t find them listed on your online banking portal. When you set them up you were asked for you card details (“please read me the long card number”) rather than your bank account and sort code numbers.

You’ll need to check your monthly card statements: any regular payments going out each month that are not marked as DD (direct debit) or SO (standing order) are likely to be continuous payment authorities.

If you want to keep paying for this service (or loan) in this way, you’ll need to contact each provider and tell them your new card details as soon as you have them.

This may sound like a lot of bother, but it is useful to check periodically what’s going out of your account regularly: there may be services you’re not using (such as fast delivery, or additional online data storage) that you want to cancel.

If you can remember the family members or friends who occasionally transfer money directly to your bank, you can send them your new account details and ask them to set them you up as a new Payee.

It’s probably not a good idea to just email all your Contacts with your new account details. If you’re concerned about email security, the most secure way of sending bank account details to specific people is via WhatsApp.

And if any payments are accidentally made to your old account, for 36 months (three years) after you’ve switched, your new bank or building society will arrange for any payments to be automatically redirected to your new account. They will also contact the sender and give them your new account details.

You can pick any convenient day in the month, so long as it’s more than a week away, and not a weekend or a bank holiday.

If all your regular payments tend to go out of your account around the same time it’s best to choose a time of the month when your bank account isn’t so busy.

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