Six best current accounts UK - Times Money Mentor (2024)

One thing First Direct does well is customer service. During the Times Money Mentor awards last year it scored overwhelmingly high in this category and won “The Times readers’ favourite financial app” award to boot.

As a digital provider, which is part of the HSBC banking group, you will only be able to contact its support team via phone, app or website. This is available 24/7, meaning you won’t need to wait for regular banking hours to log any requests or pick up the phone to make a call.

The current account itself is free, comes with £250 in interest-free overdraft (subject to status), and provides exclusive access to a regular savings account at 7% AER. In addition, it offers a debit card with fee-free spending abroad.

– 0% EARvariable on the first£250,39.9% EARvariablethereafter, giving a representative rate of30.5% APRvariable

JP Morgan’s Chase is one of a fairly new breed of app-based banks, giving you all the core banking functionality through your phone.

It offers a range of excellent perks:

– 1% cashback on everyday debit card spending for your first 12 months
– Chase has a competitive linked easy-access savings account, paying interest of 4.1% AER (variable) on deposits up to £1 million
– Chase doesn’t charge fees for using your card or withdrawing cash at home or overseas
– Round-up purchases to the nearest £1 with an account paying 5% AER (variable)
– 1% AER (variable) interest on any balance in your current account

Chase’s cashback offer is very competitive, allowing you to earn money on a wide range of purchases (even when spending abroad). There are exceptions – for example, you won’t earn cashback when you use your debit card to pay for estate agent fees, gambling or cars. You can earn up to £15 cashback a month – adding up to £180 in the first year.

– There is no overdraft facilitywith Chase
– Maximum cash withdrawal per day: £500
– When abroad, cash withdrawals are limited to £1,500 a month

Starling* is another app-based current account. It offers a host of useful features:

– Interest on current account balances up to £5,000 of 3.25% AER (variable)
– No fees for using your card abroad
– Lower than average overdraft rate: 15% – 35% EAR variable subject to credit checking
– No added charges for unarranged overdrafts
– Highly rated app

One potential weakness is that Starling is a digital-only provider. So if you need access to a branch you’ll have to look elsewhere.

– Overdraft interest rate (APR): 15%-35%
– Maximum cash withdrawal per day: £300

Lloyds Bank’s Club Lloyds account typically comes with a £3 monthly fee, but this is waived if you deposit more than £2,000 into your account each month. If you can get this account for free then you do get some great perks, including one of the following:

– 12 months of Disney + (which costs £4.99 a month)
– 6 cinema tickets
– An annual magazine subscription (titles include Cosmopolitan, Men’s Health, and Country Living)
– An annual Coffee Club and Gourmet Society membership (which normally costs £5.99 a month)

It’s a great option if you regularly make use of any of these benefits, and the preferential mortgage rates come as an additional plus. But if you don’t use any of these perks then there may well be better options for you out there.

If you want to have a current account with an organisation that has an ethical approach to banking, Co-operative Bank should be on your shortlist:

– “Everyday rewards” option means the accounts gives up to £2.20 cashback a month – or generates a charity donation – T&Cs apply
– Has a UK branch network
– Arranged overdraft rates and overseas card charges are a little lower than some of its high street competitors

While it is longer part of the Co-op Group, the bank still has to prove it adheres to strong ethics and values in order to continue using the Co-op brand name.

It does this by turning away businesses that conflict with its ethical policies and working to support those which are ethically strong.

– Overdraft interest rate (APR): 35.9%

With access to 5% AER (variable) in-credit interest and an 6.50% AER (variable) regular savings account, Nationwide’s exclusive savings rates are a decent choice for some people.

Its in-credit interest is only available on balance up to £1,500 and it’s designed to make your disposable income work that little bit harder. Meanwhile, the regular savings is one of the best rate on the market and is an excellent option if you wish to build a savings habit.

For people switching bank who are overdrawn, or more likely to be in the red than earning interest, there’s also a 0% overdraft available for the first 12 months.

The account also comes with no monthly fee, although being Nationwide’s “Direct” account, branch access is more limited than with it’s standard account.

New app-based current account Kroo pays its customers 4.35% AER/ 4.27% gross (variable) a year on any balance held in the account, up to £85,000.

This trumps some standard easy-access savings accounts, making it a great option for savers. It pays interest on a monthly basis.

As with some of the other accounts on this list, Kroo does not charge you to make payments with your card abroad. It also won’t charge you fees on cash withdrawals abroad until 31 October, a nice bonus.

Kroo charges 24.9% APR on its overdraft, less than many overdrafts but similar to a standard credit card rate, but whether you will qualify for one depends on your credit history.

Overdraft interest rate (APR): 24.9%

The Santander Edge account costs £3 month but you will more than make it back with the great perks:

– 1% cashback on water and energy bills, council tax, mobile phone bills, broadband/tv packages (up to £10/month)
– 1% cashback on supermarket and travel spending (up to £10/month)
– Optional savings account with7.00% AER* / 6.78% gross(variable) interest on balances up to£4,000
– No fees for using account abroad, including card purchases and withdrawing cash
– Option to use Santander Boosts, a way to earn personalised cashback and vouchers at selected retailers
– Existing Santander Edge Up current account customers could get £18 when they open a Santander Edge credit card between 21 May and 2 July 2024. T&Cs apply.

You will need to pay in £500 each month to qualify for the benefits of this account. If you have a Santander mortgage or high water bills, a Santander 123 current account is likely to be more lucrative, as you’d earn more cashback.

–Overdraft interest rate (APR): 39.94%

NatWest’s Premier Reward account charges a £2 monthly fee, but has a decent cashback option. You can earn up to £10 a month as long as you meet the following criteria:

– Pay at least £1,250 a month into the account
– Have at least two monthly direct debits set up, each of £4.50 or more (this will earn you £9 in monthly rewards)
– Log into your NatWest mobile banking app at least once a month (this will earn you £1 in monthly rewards)

Don’t want to pay the monthly fee? NatWest also offers a free ‘Premier Select’ account, but you won’t benefit from the cashback options offered by the dearer Premier Reward option.

This is also a decent option if you want fee-free spending on holiday with a major bank, as you won’t be charged for non-sterling card transaction fees abroad. It just won’t apply for cash withdrawals.

In order to qualify, you’ll need to pay in £100,000 sole income or £120,000 joint income into your account. If this isn’t possible then you’ll need to have one of the following:

– Savings or investments of at least £100,000 with the high-street bank
– A mortgage of at least £500,000 with NatWest

– Overdraft interest rate (APR): 39.49% rep APR

Launched in 2015, Monzo is a digital provider that now serves more than eight million customers across the UK. This makes it the seventh largest bank in the country by customers alone.

While it does offer premium current account for its customers, its basic bank account is free and is entirely managed via the app. This is one of Monzo’s main appeals, with the app including a range of helpful tools to manage your money. For example, there’s the salary sorter tool to support your budgeting and the shared tabs feature to help you split bills with your friends and flatmates.

The basic current account comes with access to an easy access rate of 4.10% AER variable and a new cashback feature at popular retail spots such as Asda, Boots, Disney Plus and H&M.