The best bank accounts: Banks that offer cash for switching, interest on your balance and cashback

Daily Mail​

6 days ago

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People rarely change their bank accounts, often sticking with one they opened as a young worker, student or even child, despite there being much better deals - and even free cash - out there.
The best bank accounts go the extra mile, with many current accounts coming with incentives or extra perks to help you get the most from your money.
The latest statistics from the Current Account Switch Service (Cass) suggest that bank account switches are becoming more popular in the UK, with 2024 being the second consecutive year of over a million switches. But when you consider there's almost 54million adults in the UK, it's clear most people are staying put.
The savvy consider jumping ship for a better deal or service though. There are lots of banks to choose from, offering different current accounts to suit different people. Options range from those that pay interest to ones that offer cheaper spending abroad, good apps and budgeting tools, a better overdraft rate, or extras such as insurance.
There are often generous incentives on offer to encourage you to switch bank account. At the moment you can bag up to £175 just by switching, with deals from First Direct, Barclays and NatWest available.
Meanwhile, Britain's biggest building society Nationwide has paid out £100 in bonuses to qualifying members with current accounts for the past three years - and promises to keep its branches open.
Some banks have very competitive linked savings rates. For example, digital bank Starling pays 3.75 per cent for linked instant access savings, while Monzo pays 3.25 per cent and Chase pays 2.75 per cent.
Banks such as Barclays, HSBC and Santander also grant access to exclusive easy-access savings rates. If you're unhappy with your current bank or spot a better deal elsewhere, it may be worth considering a switch. You can find our pick of the best bank accounts below.
Best current accounts: Top accounts and perks at a glance
Account Perks Conditions Overdraft
£175 for switching. 15% cashback at popular retailers. 4.61% Rainy Day Saver. Open a Barclays Bank Account or Premier Current Account using app. Join Blue Rewards, for £5 a month and pay at least £800 in monthly – doesn't apply opened a premier account. Switch in app, including two direct debits at least, and pay £1,500 into the account. 35%
Chase 1% cashback on eligible purchases (groceries, transport, fuel) for 12 months, max £15 a month. Fee-free spending abroad. Access to linked easy-access savings paying 2.75% (5% with boost for 12 months). Round-ups option for spare change pays 5%. None required. You have to use the app. No branches. N/A
Club Lloyds Pays 1.5% in-credit interest on up to £4k, and 3% on £4k-£5k. Choose a reward each year from either 12 months of Disney+, six cinema tickets, an annual digital Coffee Club and Gourmet Society membership or an annual magazine subscription. Fee-free spending abroad. £5 monthly fee unless you deposit £2,000 a month into the account. £100 interest free. 29.9% variable after.
First Direct 1st Account £175 switching bonus. £250 interest-free overdraft. Earn 7% via Regular Saver Account. Within 45 days pay in £1,000, switch at least two direct debits and use debit card five times. You have to use the app. No branches Above £250 it is charged at 39.9%
Halifax Reward
Fee-free spending abroad. £100 interest-free overdraft. Up to 15% cashback at certain retailers. Pay in £1,500+ into the account each month otherwise a £3 monthly fee applies. Above £100 it's 29.9%
Kroo In-credit interest paying 3.15% on balances up to £500k. Zero fees when spending abroad. Online and smartphone-only bank. 39.9%
Monzo Bank Linked instant-access saver paying 3.25%. Fee-free spending abroad. Instant spending notifications. Cashback at select retailers. Online and smartphone-only bank. 19%, 29% or 39% depending on credit score.
Nationwide FlexDirect, FlexPlus, FlexAccount FlexDirect: 1% cashback for new customers and 5% interest on balances up to £1,500 for the first year (drops to 1% after the first year). FlexPlus: £18/month fee. 39.9%
NatWest Reward * & RBS Reward account £125 switching bonus for NatWest Reward and a £50 bonus for opening a Digital Regular Saver. £5 a month back in rewards. Digital Regular Saver pays 5.5%. Pay in £1,250 within 60 days of switching, log in to app. £2 monthly fee. Must set up two direct debits a month for £4 bonus, and then log into mobile banking once a month for £1 bonus. You must pay in £1,250 minimum each month. 39.49%
Santander Edge Up account Pays in-credit interest of 2.5% on up to £25k. Santander is paying 1% cashback a month on bills up to £15 monthly and 1% on groceries, travel, fuel up to £15 monthly. No charge for using your debit card abroad. £5 a month fee. You must pay in £1,500 a month and have two active direct debits. 1% cashback on groceries, travel, fuel is being removed in September 2025. 39.94%
Starling Bank current account * 3.75% linked easy-access account. Fee-free spending and ATM withdrawals abroad. Online and smartphone-only bank 15, 25 or 35% depending on credit score.
Triodos Bank Promises only to lend on projects that make a 'positive impact' for people and the planet. 2.6% instant access savings. £3 monthly fee. N/A
TSB Spend & Save & Spend & Save Plus £100 switch deal. Extra £210 available in cashback and other rewards. 1.7% on spending pots for 12 months. 5% monthly saver. For switch offer, complete switch and log in to app, make at least five debt card payments before 22 September 2025. Spend & Save Plus: £3 monthly fee. 39.9%
Zopa Bank 2% interest on current account balances fixed for 12 months (uncapped), 7.1% regular saver, 2% cashback on bills (only up to £30 a year), fee-free spending abroad Online and mobile app only. N/A
Best bank switch offers
1. First Direct: Great for customer service
First Direct's offering £175 to switch to its current account. There's no closing date for the offer, but the bank says it can withdraw it at any time.
You can get the bonus by:
Opening an account and switching within 45 days using the Current Account Switch Service, including at least two direct debits or standing orders.
Depositing £1,000, making five debit card payments, and logging on to digital banking within those 45 days.
You won't be eligible if: You've had a First Direct product or opened an HSBC current account since 1 January 2018.
We like: First Direct is well regarded for its customer service, even though it has no physical branches. There's no fee for using your card abroad, and you have a £250 interest-free overdraft (it's 39.9 per cent variable above that, making a representative rate of 30.5 per cent APR variable).
Watch out for: The lack of physical branches could be a problem for some, although you can pay in cash and cheques at HSBC and Post Office branches.
2. Barclays: £175 to switch but you must join Barclays Blue
Barclays is offering £175 just like First Direct, but you must join Blue Rewards which costs £5 a month.
You can get the bonus by completing these steps by 28 August 2025:
Use the Barclays app to open a Barclays Bank Account or Premier Current Account.
Join Blue Rewards, which costs £5 a month and you must also pay at least £800 in monthly – you don't need to do this if you've opened a premier account.
Switch using the Current Account Switch Service in the app, including two direct debits at least, and pay £1,500 into the account.
You won't be eligible if: You've had a switch offer from Barclays before, or you opened a current account with Barclays before 15 July 2025.
We like: You get an Apple TV+ subscription, as well as 15% cashback at popular retailers including Asos and Currys. You can also open a Rainy Day Saver account when you have Blue Rewards, which currently pays a generous 4.61 per cent interest variable on balances up to £5,000, reducing to 4.36 per cent from 4 August 2025.
Watch out for: The £5 a month fee for Blue Rewards – you should work out whether the perks are worth the monthly fee for you.
3. NatWest: £125 plus another £50 for opening a digital savings account
There's £175 up for grabs with NatWest but getting the full amount hinges on opening two different types of bank account.
You can get the bonus by:
Opening an eligible Select or Reward account.
Switching using the Current Account Switch Service, paying in £1,250 within 60 days and logging in to the mobile app makes you eligible for £125.
Opening a Digital Regular Saver within 60 days of the switch then gives you a further £50.
You won't be eligible if: You've had a switch offer from the NatWest Group before (which includes Royal Bank of Scotland or Ulster Bank). You can't already have a current account with NatWest or one of its other brands.
Watch out for: The maximum you can pay in to NatWest's regular saver is £150 monthly.
Best current accounts with interest
Current account in-credit interest has dwindled in recent years, with many banking providers offering customers little to no interest – but deals are still available.
1. Nationwide: 5% on balances up to £1,500
Nationwide has an introductory 5 per cent fixed interest rate on FlexDirect current account balances. The rate is available for new accounts on balances up to £1,500 for the first 12 months, so you'd earn £75 if you had at least £1,500 in your account for the whole year.
You can get the introductory interest by:
Opening a new FlexDirect account (you won't get the boosted rate if you've received it or had a FlexDirect account before).
Paying in at least £1,000 a month.
We like: Nationwide also pays 1 per cent cashback on qualifying spends using your FlexDirect debit card, up to £5 a month. In recent years, qualifying current account customers have benefited from the £100 Fairer Share payouts, which aren't guaranteed but have been a much-loved bonus. Britain's biggest building society has also promised to keep branches open - and in many places where rival banks have shut it has the last branch in town.
Watch out for: Interest drops to zero if your monthly deposit into your account is less than £1,000. The interest rate also plummets after the first year to 1 per cent variable, so you should consider moving your money elsewhere after the introductory period is up.
Support: Nationwide is worth considering for in-person banking - it's promising to keep all its branches open until 2028.
2. Kroo: 3.15% on your balance
Kroo is a new challenger bank that's offering 3.15 per cent interest variable on balances up to £500,000.
You can get the interest by:
Opening a current account by downloading the Kroo app on your mobile phone.
We like: There are no particular hoops you need to jump through to get the interest. You can use your debit card for free abroad.
Watch out for: Kroo is a new bank and some may prefer to go with established names. That being said, your money's protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). You should also keep in mind it's app-based, similar to Monzo and Starling.
Other banks to consider for in-credit interest
Santander Edge Up: Santander pays monthly interest of 2.5 per cent variable on balances up to £25,000, but this is a rewards account that charges £5 a month.
Zopa Bank: Zopa's current account – called Biscuit – offers 2 per cent on your balance. We like that it's uncapped and fixed for 12 months. But after that it's variable.
Best bank accounts for cashback
Unfortunately, many banks have been making their cashback deals far less attractive, with Chase restricting eligible transactions earlier this year – and Santander set to follow suit in September.
1. Chase: 1 per cent cashback a month up to £15
Chase is part of US financial giant JP Morgan and launched in Britain in 2021. It's offering 1 per cent cashback up to £15 a month on groceries, public transport and fuel and EV charging for the first year.
You can get the cashback by:
Opening an account as a new customer and using your debit card to spend on eligible categories.
After your first year you can continue to earn cashback but you must pay at least £1,500 into your account each month.
We like: There are no fees for using your debit card abroad and no monthly fee. You can also open a boosted savings account that pays a 2.25 fixed interest rate boost for your first year, on top of the standard variable rate, currently 2.75 per cent – making the boosted rate 5 per cent.
Watch out for: Chase is a digital-only bank that requires an app to join, so it's worth looking elsewhere if you prefer to bank in-branch. Its cashback also used to be far more generous, offering 1 per cent on most debit card spending.
2. Santander Edge Up: Up to £30 cashback available a month (but not for long)
Santander's Edge Up account offers 1 per cent cashback on both debit card spending and direct debits, with up to £30 per month available – although there's a £5 monthly fee.
You can get the cashback by:
Paying by direct debit for household bills including council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages, with cashback capped at £15 a month.
Paying by debit card for essential grocery shopping and transport-based debit card spending, such as for fuel and train tickets, with cashback again capped at £15 a month (but Santander is removing this cashback in September).
Paying £1,500 a month into the account and having two active direct debits.
We like: There's no charge for using your debit card abroad and you can get 2.5 per cent interest variable on balances up to £25,000.
Watch out for: The £5 monthly fee, as well as the fact that Santander is removing the cashback on supermarkets and travel from 9 September 2025 – making cashback far less attractive. Also keep in mind that most customers won't get close to the potential £30 a month. They would need to spend at least £1,500 a month on eligible essential debit card spend and £1,500 a month on eligible monthly bills paid by direct debit.
A good option for completely digital banking
The rise of digital-first challenger banks has given customers far more choice over where to keep their money.
1. Starling Bank: voted great for customer service
Starling Bank is an online-only challenger bank that was recently voted the second-best British organisation for customer satisfaction, behind First Direct. It launched in 2014 and has grown substantially since then.
We like: You can get a linked easy access savings account that offers a generous 3.75 per cent interest variable on your money. There are no fees for using your debit card abroad and Starling says it offers 24/7 support from a human UK-based customer service team. The app offers useful tools such as automatically saving spare change and bill split features.
Watch out for: There are no physical branches, so if you prefer in-person banking then you should look elsewhere.