Bread Crumb Trail

Banking & Saving Current Accounts
ProviderAccountAERMin BalO/D RateO/D BufferApply
Earn 4.00% AER on your whole balance if you keep £5,000 - £7,000 in your account
4%
£1
No Offer
No Offer
Get 6.0% AER on all balances up to £2,500. You need to be 21 & pay in £500+ p.m
6%
£1
0%
for 12 mths
£2,000
£1,000 0% overdraft facility for 12 months & 6% AER on your first £2,500 for 12 months
6%
£1
0%
for 12 mths
£1,000
£200 interest free overdraft. You need to be 18+ & pay in £800+ p.m
0.50%
£1
0%
for life
£200
Get a Debit Card & access to a network of over 1,700 branches. You must be age 18+
0%
£1
0%
N/A
No Offer
Halifax will give you £5 each month you pay in £1,000, whether you're in credit or overdrawn.
0%
£1
0%
£2,500
BOS will give you £5 each month you pay in £1,000, whether you're in credit or overdrawn.
0%
£1
0%
£2,500
HSBC will switch all your Direct Debit & Standing Orders to your new account for FREE. You need to be 18+ & pay in £500+ p.m
0.10%
£1
0%
for 2 mths
£500
Get 5.0% AER on all balances up to £1,000. £2,000 0% overdraft. (For ages 16-21 only)
5%
£1
0%
£2,000
  • To get 4% AER you must keep between £5,000 and £7,000 in your account at any time
  • Amounts below this are subject to the following rates:
  • £1+ = 0.10% AER
  • £1,000+ = 2.00% AER
  • £3,000+ = 3.00% AER
  • £5,000 up to £7,000 = 5.00%AER
  • You must deposit £1000 per month to qualify for these rates
  • Free banking – no charge for everyday transactions when you’re in credit
  • Online Banking
  • 24/7 telephone support
  • Commission-free foreign currency
  • 6.0% Annual Earnings Rate on balances up to £2,500
  • **(6.0% is fixed for 1 year)**
  • 0.1% AER (variable) on balances over £2,500
  • £2,000 0% overdraft facility for 12 months from account opening, then 50p a day (up to £5 a month) if agreed by Alliance and Leicester.
  • You have to pay at least £500 per month into your current account
  • You must be over the age of 21
  • Earn 6% AER on balances up to £2,500 for 12 months
  • After 12 months you will earn 1.5% AER on any balance on the account
  • 0% interest- free on Overdrafts for the first 12 months, after this it will revert to 19.9%EAR
  • Manage your day-to-day money for free with no monthly account fee, no transaction charges and no charges for using account facilities - as long as you remain in credit
  • Get a cheque book and a Visa Debit card. You can use your Visa Debit card in shops wherever you see the Visa symbol and at virtually every cash machine in the UK and many worldwide. It also acts as a £100 cheque guarantee card
  • Access to your money 24 hours a day 7 days a week through our e-banking service, 750+ branches, 24-hour telephone banking service, LINK cash machine network or even by post
  • At least £1,000 a month must be credited to get 5% AER on balances up to £2,500
  • If not switching earn 5% AER on balances up to £1,000 for 12 months if £1,000 is credited each month
  • ***You must deposit at least £800 per month***
  • Interest on all balances tracks at 0.5% below the Bank of England Base Rate, guaranteed for the life of your Current Account.
  • UK call centres open 24/7, 365 days a year
  • Fee-free £200 overdraft facility
  • Dedicated switching service
  • A carbon neutral debit card (subject to status).
  • Online Banking – do your banking from home (subject to registration).
  • Telephone Banking – pay bills and more (subject to registration).
  • A network of over 1,700 branches.
  • Draw on cheques paid in before they clear (subject to status and limit).
  • An overdraft: 19.3% EAR typical variable*. Subject to status and application. Overdrafts are repayable on demand.
  • Barclays £2,500 Overdraft Reserve Option:
  • - One Reserve Usage Fee of £22 for each five consecutive working day period from the day you start using your Reserve.
  • - No interest payments on your Reserve balance. 0% EAR typical.
  • - The Reserve is repayable on demand. The maximum Reserve is £2500, subject to status.
  • - One Returned Transaction Fee of £8 for each returned transaction where you exceed your Reserve.
  • - One Guaranteed Transaction Fee of £8 for each guaranteed payment made where you exceed your Reserve.
  • Halifax will give you £5 each month you pay in £1,000, whether you're in credit or overdrawn.
  • This account offers a flexible 0% Overdraft facility:
  • - £1 per day - if you use an 'Arranged' overdraft up to and including £2,500
  • - £2 per day - if you use an 'Arranged' overdraft up to and including £2,500
  • - £5 per day - if you use an 'Un-Arranged' overdraft
  • A Halifax Visa debit card
  • Access to the extensive branch Network
  • 24/7 Online Banking Access
  • BOS will give you £5 each month you pay in £1,000, whether you're in credit or overdrawn.
  • This account offers a flexible 0% Overdraft facility:
  • - £1 per day - if you use an 'Arranged' overdraft up to and including £2,500
  • - £2 per day - if you use an 'Arranged' overdraft up to and including £2,500
  • - £5 per day - if you use an 'Un-Arranged' overdraft
  • A Bank of Scotland Visa debit card
  • Access to the extensive branch Network
  • 24/7 Online Banking Access
  • YOU MUST BE 18+ & PAY AT LEAST £500 PER MONTH INTO THIS ACCOUNT
  • HSBC Automatically transfer your Direct Debits and standing orders to your new account
  • New cheque book & Debit Card within a week of you opening your account...or HSBC give you £10
  • Enjoy a 0% overdraft for two months, while HSBC transfer your account After this time the overdraft rate will be 19.9% EAR variable
  • 5.0% AER (fixed for 1 year) on balances up to £1,000
  • 0.10% AER (variable) on balances over £1,000
  • Access to a £2,000 0% overdraft facility
  • Visa debit card
  • Access to your account via Internet, Telephone and Mobile Banking
  • Recommend a friend and earn £50
ProviderAccountAERMin BalO/D RateO/D BufferApply
0%
£0
No Offer
No Offer
No Credit Check basic bank account – Open to everyone 18+ & UK resident
  • CardOneBanking offers the following:
  • Guaranteed Acceptance
  • Sortcode & Account Number
  • Prepaid MasterCard card
  • 24 hour account management by Phone, Text and Online Banking
  • Dedicated Account Manager
  • NO OVERDRAFT FACILITY – No risk of going overdrawn
  • NO EXTRA CHARGES – No charges for bounced standing orders
  • NO CREDIT CHECKS! – Guaranteed to be accepted, regardless of your past credit
  • YOU must be 18+ and UK resident
  • £30 account opening fee and £12.50 monthly management fee

Current Accounts Explained

1. Current Accounts are a loss leading product for banks

Current accounts are used to provide customers with easy access to their money. They allow you to be able to deposit funds which can then be withdrawn either from an ATM, via a transaction, or directly from your bank. They also provide the direct debit feature which allows you to set up regular payments such as utility bills that can be automatically paid periodically. Many accounts also offer online banking enabling customers manage and monitor their finances.

Current Accounts are seen by almost all banks as a ‘hook’ or a ‘way in’ to supplying you with your overall financial requirements. Most banks don’t actually make money out of providing you with a current account, once they take into account things like withdrawal and deposit costs, which carry overheads such as cashier staff, ATM networks maintenance or provision of online banking systems.

The banks therefore do not provide this service from the kindness of their heart, far from it. They provide it with the sole purpose of attracting you to them and getting an insight into your financial affairs. Once they have done this they can then cross-sell you into other, more lucrative products, such as credit cards, savings accounts, loans and mortgages, as and when the opportunity arises.

It is important therefore that you remember a bank is trying to give you a golden handshake when offering you a bank account. It is trying to open the door to future business with you. Gone are the days of the ‘standard’ current account offering 0.1% AER and nothing else. Banks are now competing against each other for the chance to win this lucrative relationship, offering better interest rates (some up to 6.5% AER) and other benefits such as 0% overdraft facilities.

As current accounts are primarily used for transactions, interest rates are generally low on balances. However, some current accounts do offer higher rates of interest used to attract customers, although the high rate is usually only offered up to a specified amount, then anything over is capped at a low rate. For example 8.5% on the first £2,500, then 0.10% on anything over £2,500. Some high interest current accounts only offer these high rates for an introductory period, so always check how long the offer is active for. If you are keen to make high interest savings it may be worth looking into a feature such as sweeping which is used to transfer excess funds from your current account into a high interest savings account.
      
2. Think about your banking needs – do you really need a local branch?

The main factor you should be thinking about with your current account is ‘serviceability’ i.e. how easy it is for you to access your account and deal with your affairs. If you have a heavy dependence on a cashier for paying bills or depositing cash, then you should look for a bank that offers an extensive branch network covering your local area.
     
3. If you bank online you will get a better deal!

If you are very busy and do not have time to access a branch, or simply do not have the need (as your salary is paid directly to your account, and your bills are mostly direct debit) then you should be looking for a bank account provider that offers state-of-the-art online banking access and telephone support, rather than local branches. You should expect to receive a better rate of interest and benefits such as 0% overdraft facilities as managing accounts online and via the telephone reduces the overheads of a bank managing your account, allowing them to pass on these savings in the form of better rates. You should remember that these ‘internet’ accounts still allow you to pay cash into them through the post office, or one of the big four banks branch network.
     
4. How can you benefit from an overdraft?

Most current accounts offer an overdraft facility which can be used as a form of borrowing. The limit provided is usually negotiated with your bank and can normally be increased or decreased where required. Some banks offer a small interest free overdraft facility without requesting, but you should always check with your bank to avoid penalties. Interest rates usually apply to some or all of the overdraft so it is always best to check the rates applied.
      
5. Which4u offers single table comparison

Which4u aims to make this task of finding the right bank account for you as quick and painless as possible by listing banks accounts providers side-by-side in our simple to use tables. Competition between current account providers is increasing and therefore these tables allow you to compare the main differentiating factors, interest rates and overdraft facilities.

Simply select the account provider that offer the best deal for you and click ‘Apply’. You will then be taken to that banks website to make your application. In most cases you should get an instant decision online!