How to choose a bank account

Almost all current accounts allow you to: 

• use a debit card to spend online or in shops and take money out at cash machines 
  
• receive money from others, such as wages or benefits
  
• move money between your accounts or pay someone else 
  
• set up regular payments to pay bills, such as energy, rent or childcare
  
• open a joint account. 
  

These are the basic things you can expect. However, to make them stand out, some accounts offer extra perks such as:

• savings interest 
• cashback on bills or spending 
  
• interest-free overdrafts, including for students
  
• free overseas spending
  
• rewards or free cash, often for switching 
  
• access to special products with better rates or discounts  
  
• packaged insurance policies, such as travel and mobile phone cover.

Always check each deal carefully as there are usually conditions to meet, such as having to pay in a certain amount every month or making payments via Direct Debit. Watch out for any monthly fees to keep the account.  

You can then narrow down the offers to the ones you want, qualify for and can afford. 

You’ll be able to manage most accounts using mobile and online banking, often with access to a customer service team via phone or video call. But you might not be able to speak to someone in person.

If you’d like this option, check if the bank:

• has branches you can get to

• has staff available at a local banking hub, where different banks share one space – often on different days 

• lets you use the Post Office to do certain things, like paying in cash.   

An overdraft allows you to spend more than you have in your account. You’ll usually pay expensive daily interest to use it.

It’s a form of debt, so should only be used for emergencies or a short-term option.

Here’s a complete guide to overdrafts, but always check:

• if there’s an interest-free limit or buffer for spending more than you have 

• the overdraft interest rate

• fees if you don’t have enough money to cover payments.

The Current Account Switch Service (CASS) means money and payments can be automatically moved from your old account to your new one. This includes redirecting any incoming payments. 

It takes seven working days and you’ll be refunded any interest or charges if things go wrong. Almost all banks use this, but you can check the full list of banks signed up to CASSOpens in a new window

For full help, see How to open, switch or close your account.

Most bank accounts are protected by the Financial Services Compensation Scheme (FSCS). In the unlikely event your bank, building society or credit union were to fail, you’d automatically get your money back – up to £85,000 per person.  

You can use the FSCS protection checkerOpens in a new window to see if your bank is covered.

If it’s not, it’s likely to be a virtual current account covered by e-money rules. This means your money is kept safe at a different bank, but you’d need to make a claim to the administrator if your provider failed.  

Our MoneyHelper compare bank accounts tool helps you view account features, fees and charges. 

For current account reviews, see: 

• Which? bank account guidesOpens in a new window
• MoneySavingExpert’s best bank accounts reviewOpens in a new window
• Consumer Council’s Current Account Comparison TableOpens in a new window if you live in Northern Ireland. 

To find banks with the best customer service record, you can use the Which? quality rating customer score

Once you have a shortlist of accounts, make sure you’re able to apply.  

For example, to qualify for an account you might need to: 

• pay in a minimum amount every month 
• have a good credit history 
• own a smartphone
• switch an existing account to qualify. 

Banks will also need to verify who you are and where you live, so you’ll need proof of ID. This is often a passport or driving licence, but other documents are often accepted too.  

For more information, see How to open a bank account.

If you have difficulty opening an account, there are other options to consider:  

• basic bank account – offers most current account features (except an overdraft) and usually accepts those with a poor credit history, convictions or in prison

• credit union current account – run by not-for-profit organisations, but you might pay a monthly fee to get one

• prepaid card account – lets you spend and withdraw cash but you can’t usually set up payments.