Looking for a better bank? This is Money’s pick of the best current accounts for interest, perks, packages and overdrafts

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  • We pick the best current accounts to switch to for interest and free cash
  • Our top current accounts also include excellent customer service
  • Best current accounts may offer savings account-beating interest

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Current account switch service data showed that more than 7 million people have changed their bank accounts since 2013.

But that seems like a cause for celebration, that number has grown to just over 1million people who replaced the energy supplier in 2020 itself.

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Those who change bank accounts regularly are rare, and are usually happy to spend a few hours researching cash in exchange for switching bonuses or other perks.

But switching should now be easier than ever, with CASS over your account in seven days and a promise to make direct debit transfers from it.

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Find more profitable deals: Some accounts promise cashback, interest and freebies

While current account perks are not as generous as they used to be before the pandemic, banks have started competing for customers again in recent months, with some even rolling back switching bonuses.

Some banks have started raising their interest rates even though their base is very low.

If you’re unhappy with your current bank or find a better deal elsewhere, it may be worth considering a switch. You can find our pick of the best accounts below.

Top accounts for free cash, interest and perks at a glance
accountingfacilitiesConditionsoverdraft
first direct first account £100 switching incentive
£250 interest free overdraft
Earn 1 percent from regular savings account
NoAbove £250 it is charged at 39.9 percent
Nationwide FlexDirect£100 switching incentive. If you’re a Nationwide member, you’ll get £125 to switch.
2% interest and duty-free overdraft up to £1,500, both for the first year only. After the first 12 months, it is 0.25 percent.
Interest-free systematic overdraft for 12 months
Pay in £1,000 per month.It’s 39.9 percent after the first 12 months
Halifax Awards
Choice of £5 a month, two movie rentals or three magazine rentals paid into your account, or one free cinema ticket every month.Pay in £3 monthly fee or £1,500 per month. Spend £500 every month on your debit card or maintain a balance of £5,000.39.9 percent
HSBC Advance£110 Switching Bonus + £30 Uber Eats or Dining Out Vouchers
Earn up to 1 percent interest through regular savings account.
£25 interest free overdraft.
Switch using CASS with two direct debits or standing orders. Must not be a First Direct or HSBC customer since 2018.39.9 percent of it after the first £25
Club Lloyds £100 Switching Bonus
Pays 0.6 per cent for up to £4,000 and 1.5 per cent on £4,000 – £5,000.
Choose one award from 6 cinema tickets each year, an annual magazine subscription, 12 digital movie rentals.
£50 interest free overdraft
Deposit £3 monthly fee or £1,500 per month, pay two direct debits.Its 27.5 percent after the first £50.
Santander 123
£130 cashback offer
Santander will offer up to 3 percent cashback on bills. Capped at £5 a month.
Pays 0.3 percent on balances up to £20,000.
£2 per month fee. You pay £500 a month and must maintain two active direct debits.39.94 percent.
Royal Bank of Scotland/NatWest Rewards£150 Switch and stay bonus for new and existing customers.
£5 reward from a month ago plus 1 percent back from some partner retailers.
£2 monthly fee. Must set up two direct debits a month for the £4 bonus, and then log into mobile banking once a month for the £1 bonus.39.49 percent
starling bank current account0.05 percent interest on the balance amount. Duty free spending and ATM withdrawals abroad.Online and smartphone-only banks.15, 25 or 35 percent depending on the credit score.
virgin moneyA £150 Virgin Experience Day gift card to Switch and a £50 free donation to a charity registered with Virgin Money Giving. The account pays 2.02 per cent monthly interest on up to £1,000 and comes with a linked easy access account paying 0.35 per cent.Apply online, switch via CASS with two direct debits and pay £1,000 in a linked easy-access account.19.9, 29.9 or 39.9 percent depending on the credit score.
barclays bank account Access to a Blue Rewards membership with cashback offers that include £7 per month, £5 per month for Barclays mortgage and 3% back on Barclays home insurance policies.£4 monthly fee and you must pay at least £800 to the account every month.35 percent
Triodos Bank Low overdraft rate of 18 percent.
Promises to lend only on projects that make a ‘positive impact’ for people and the planet.
£3 monthly fee.18 percent.

1. Best Account for Credit Interest: nationwide

Current account in-credit interest is not what it used to be.

last April Nationwide Building Society’s FlexDirect Account, which had helped nearly 600,000 net switchers in the UK’s largest mutual synergy since 2013, saw its rate drop from 5 per cent to 2 per cent.

But at the time of low rates, it is still the best interest paying account. The rate is paid on balances up to £1,500 for the first year, and it’s not a bad idea to pay only 0.65 percent when looking at the top easy-to-access deals.

Someone maintaining a minimum of £1,500 in his account earned £22.66 in interest over a period of one year.

Although Virgin Money’s account pays 2.02 percent interest, it is only on balances up to £1,000 and therefore the maximum interest it can receive is far less than that of Nationwide’s account.

For a nationwide account, holders must pay a minimum monthly income of £1,000.

Interest: Nationwide pays 2% on your first year balance up to £1,500 and is currently offering a cash kickback of up to £125 to switchers

Interest: Nationwide pays 2% on your first year balance up to £1,500 and is currently offering a cash kickback of up to £125 to switchers

Nationwide will calculate the interest earned each day on the last day of each month and then pay this interest on the first day of the following month.

Holders are also eligible for a 0 percent overdraft for the first 12 months, but after that they pay a whopping 39.9 percent.

take care

If your income goes down and you can’t pay…

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