Banks are battling for your custom, with cash sign-up bonuses, lifestyle perks, cashback and special deals for everyone from high rollers to cash-poor students.
Two new current accounts have launched in the past two months – the first new launches since 2021 – in a sign banks are looking to lure customers in with new offers.
Banks are hungry for current account customers, as it is easy to cross-sell them other products, such as investments, mortgages and credit cards.
Most switches now take place via the Current Account Switch Service (Cass). This allows customers to easily change banks without the worry of payments going missing or the switch going wrong.
Often banks offer you money to switch this way, and new customers can pick up £100 or more.
Cass has facilitated more than 11 million current account switches since it launched in 2013. Money Mail – with the help of two experts – has picked the six best accounts on offer for different types of customers right now…
Earn more than £100,000 a year
HSBC Premier Bank Account
There has been a mini-battle to win over richer customers in recent months, with Lloyds muscling into a market traditionally dominated by HSBC and Barclays.
Despite this, experts Andrew Hagger, from independent information website Money Comms, and Rachel Springall, from comparison website Moneyfacts, still believe HSBC is top dog.
Students can earn £160 of Just Eat vouchers when they open a FlexStudent account with Nationwide and refer two friends – perfect when they’re getting to grips with sorting meals
HSBC Premier comes with a range of perks, including health appointments, free worldwide family travel insurance, wealth management advice and preferential rates on savings and mortgages.
It also offers a £500 Selfridges gift card if you switch £100,000 or more in savings or investments, or if you switch via Cass and pay in a minimum pre-tax salary of £100,000 a year – and set up two direct debits.
Customers can apply for the HSBC Premier World Elite credit card with this account, which comes with an extensive array of travel benefits and discounts for an annual fee of £290.
Mr Hagger adds: ‘Frequent travellers would soon recoup this and much more.’
Students heading to university
Nationwide FlexStudent
Banks have also increased their efforts to tempt in student customers this summer compared to previous years. Banks are keen to bag students as they often stay loyal for many years – and are potential future high earners.
In an unprecedented move, NatWest is offering £85 in cash to lure in students, paid within ten working days. But our experts believe Nationwide is the best option.
Britain’s biggest building society has launched a cashback deal worth £100, though the account must be funded with £500 before December 12, 2025 for customers to qualify. It is also offering £120 worth of Just Eat vouchers, spread over 12 months at £10 a month.
If students refer friends to open a FlexStudent account, they will earn up to £40 in Just Eat vouchers – £20 per friend referred.
It means students opening this account could get a cash boost worth £260 in their first few weeks of university.
Students can apply for an interest-free overdraft of up to £1,000 in the first year of university, £2,000 in the second year and £3,000 in their third year.
The account also offers fee-free spending and cash withdrawals abroad.
Ms Springall says: ‘This account is a great choice as it offers cost-saving incentives and has a decent interest-free overdraft. Not only this, but the Just Eat vouchers can be helpful for students finding their feet when it comes to meals, and the £100 cashback is a great upfront sweetener, too.’
The best and easiest cash bonus
First Direct 1st Account
Rachel Springall, from comparison website Moneyfacts, thinks HSBC is a winner when it comes to high earners looking to switch
Switching current accounts can bag you money, fast, if you hit certain criteria. Lloyds is offering £185 within ten working days.
Despite that, our experts pick First Direct thanks to its customer service. It is dangling a £175 cash carrot to tempt customers to switch to its 1st account.
This requires you to make a switch through Cass, transfer at least two direct debits or standing orders, pay in £1,000 and make five debit card payments and log on to digital banking within 45 days.
After that, the cash is promised by the 20th of the following month after the switch is completed.
Mr Hagger says: ‘First Direct has an excellent reputation for customer service.’
The account offers a regular saver account paying 7pc and you can put away up to £300 a month in the account. Customers can apply for an interest-free overdraft of £250. There are no fees to use First Direct’s account abroad.
Interest on your balance
Nationwide FlexDirect
Some current accounts still offer interest if you stay in the green – but deals have dwindled in recent years.
Nationwide’s FlexDirect account pays 5pc on balances of up to £1,500 – but only for the first 12 months of being a customer.
The rate reverts to 1pc after the first 12 months and no interest is paid on any portion of the balance over £1,500. The account also offers up to £60 in cashback for 12 months, which drills down to 1pc monthly cashback, capped at £5.
Ms Springall says: ‘This account is a generous choice for savers and it also offers a £200 switching bonus for existing customers. Savers may need to review and switch their deal after a year once the credit interest and cashback perks change or expire.’
Mr Hagger says: ‘I wouldn’t recommend keeping your savings in your current account. If you’re in the green, the rates aren’t great and most are either low-rate, time-limited or come with a monthly fee.’
Rates on easy-access savings accounts are superior, including Spring, paying 4.3pc, and Ford Money Flexible Saver, paying 4.35pc.
Pay for a good range of perks
Halifax Ultimate Reward
If you’re after a current account with perks, you must factor in the monthly fee and ensure you will actually use them.
Our experts’ pick is Halifax Ultimate Reward, although it is not cheap. It costs £19 per month – or £228 per year.
In exchange, customers receive multi-trip travel insurance, AA breakdown cover, phone insurance and home emergency cover.
The phone insurance, provided by insurer Assurant, covers breakage, accidental damage, loss and theft up to £2,000 and covers one phone per account holder.
Phone insurance costs around £50 a year if taken out directly, while a family car breakdown policy with AA could cost around £250 if purchased direct.
Worldwide multi-trip travel insurance for a family of four starts from £110 according to Go Compare.
The Halifax account also comes with fee-free spending abroad.
From October 1, Halifax will pay 1.5pc interest on balances between £1 and £3,999.99 and 3pc on balances between £4,000 and £5,000.
Try something new
Zopa Biscuit
A new current account was launched last month by Zopa Bank. It is an app-based bank looking to take on digital rivals Starling, Monzo and Chase.
Zopa Bank launched the app-based account Zopa Biscuit last month, in a bid to take on digital rivals Starling, Monzo and Chase. You’ll earn 2pc on your account balance for at least a year
You’ll earn 2pc on your full account balance for at least 12 months with no upper cap, and have access to a regular saver account paying 7.1pc which you can funnel up to £300 a month into.
Someone paying in the full £300 each month would earn £137 in interest over the year, providing the rate stays the same.
Customers earn 2pc cashback on up to £1,500 of direct debits per year, with the rate guaranteed for 12 months. The account also comes with zero fees on overseas spending.
However, there’s no overdraft option and currently you can’t open a joint account.
