# How to choose the best current account in the UK

> Banking & current accounts · Last updated 1 June 2026

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## Quick answer

There is no single 'best' current account — pick by type. Most people want a fee-free account with a good app and a switching bonus; only choose a packaged or reward account if you will actually use the perks.

Banks advertise switching bonuses and cashback to win your custom, but the right current account depends on how you bank, not on the size of the headline offer. This guide explains the main account types, what to compare, and how the free, guaranteed seven-day switch works.

## Key facts

- All UK current accounts at FCA-authorised banks are FSCS-protected up to £85,000 per person, per banking group
- Switching takes 7 working days and is guaranteed by the Current Account Switch Service (CASS)
- Banks regularly pay £100–£200 to switch — treat bonuses as one-offs, not loyalty rewards
- Arranged overdrafts typically charge around 40% EAR, so the overdraft rate matters more than the freebies

## Match the account to how you bank

Standard fee-free accounts suit most adults: day-to-day banking, a debit card and a good app at no monthly cost. Reward and cashback accounts pay interest on small balances or cashback on direct debits, which is worth it only if the perks exceed any fee.

Packaged accounts charge roughly £10–£20 a month for bundled travel, breakdown or mobile insurance — good value only if you would buy those policies anyway. Basic accounts are for people who cannot pass a credit check and offer full FSCS cover with no overdraft.

## What to compare before you switch

Ignore the marketing and compare on the arranged overdraft APR, the switching bonus and its conditions, in-credit interest, app quality and any monthly fee. The overdraft rate matters most if you ever dip into the red.

Use the Current Account Switch Service to move direct debits, standing orders and incoming payments automatically within seven working days. Your old account closes and the switch is guaranteed, so any missed payment is refunded.

## Frequently asked questions

### Will switching hurt my credit score?

Opening an account involves a credit check that leaves a footprint, but switching itself is designed to be smooth and is unlikely to harm a healthy credit file. Avoid opening many accounts in a short period.

### Can I keep my old account open?

Yes — you do not have to use the full switch service. You can open a new account and move your salary and direct debits manually if you want to keep the old one.

## Primary source

https://www.gov.uk/government/news/current-account-switch-service

## Related

- [Banking & current accounts](https://moneyguide.org.uk/banking/)
- [Overdrafts explained](https://moneyguide.org.uk/banking/overdraft-explained/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.