When it comes to our day-to-day banking, many of us overlook how important it is to have a current account that suits our needs.
Interest rates on savings accounts are so low that more people are turning to their current accounts to grow their cash. Many other providers offer attractive bonuses to tempt you into switching.
If your balance regularly dips into the red then it is better to opt for an account that offers cheap overdraft borrowing.
Each week we highlight our Moneywise Best Buys, which pick out the best products the current account market has to offer.
Best high interest current accounts
5% interest on balances up to £2,500
The 5% interest rate is an introductory 12 month offer - when it ends the rate drops to just 1%. Agreed overdrafts are free for the first year but you’ll need to pay in at least £1,000 a month.
TSB Classic Plus
3% interest on balances up to £1,500
You’ll need to pay in at least £500 a month, register for internet banking, opt-in for online bank statements and paperless correspondence to get this headline rate.
Bank of Scotland Vantage
2% interest on balances from £4,000 to £5,000
Holders must pay £1,000 into the account each month, stay in credit and pay out at least two direct debits. To access this interest rate you must open a standard current account with the bank and request its Vantage add-on. 1% interest on balances up to £3,999. 2% interest on balances from £4,000 to £5,000.
Lloyds Bank Club Lloyds
2% interest on balances up to £5,000
The Club Lloyds current account from Lloyds Bank pays 1% interest on balances up to £3,999 and 2% on balances from £4,000 to £5,000. To earn this rate of interest you must pay £1,500 into the account every month and have two direct debits set up.
Account holders can also get extra benefits such as six cinema tickets, an annual magazine subscription or annual Gourmet Society membership.
Santander 123 Current Account
1.0% interest on balances up to £20,000
This account comes with a £5 monthly fee, but also very generous cashback on household and utility bills.
This has a smaller interest rate than the other accounts listed but you can save up to £20,000, meaning it is better for those with lots of cash. This requires £500 monthly minimum pay-in and two active direct debits.
Tesco Bank Current Account
1% interest on balances up to £3,000
The supermarket giant pays 1% interest on balances up to £3,000. It also rewards debit card spending with Clubcard points.
You earn one point for every £1 spent in Tesco, plus one point for every £8 spent elsewhere. For new customers this account also has a £750 minimum pay-in and requires three direct debits to be set up.
Best current account switching bonus
HSBC Advance Account
£175 if you switch
If you switch to HBBC's Advance account you will get £175 bonus. However, you have to pay in £1,750 a month.
HSBC is also offering a £75 cash bonus for those switching to its basic current account.
RBS Reward Account/Select Account
£150 if you switch
RBS is offering a cash bonus of £150 if you switch to its Select and Reward accounts.
All you have to do to get the money is pay in at least £1,500 by 10 January 2020.
First Direct 1st Account
Up to £100 if you switch
Open a new account with First Direct and move your current account over to earn a £100 switching bonus.
The bonus will be paid into your account 28 days after opening it.
To qualify, you’ll need to transfer via the Current Account Switching service, transfer your direct debits and deposit at least £1,000 in the first three months.
Best authorised overdrafts
First Direct 1st Account
£250 interest free overdraft
If you regularly go overdrawn, a healthy £250 interest-free overdraft is offered by First Direct. Anything above this is charged at 15.9%.
M&S Bank Current Account
£100 interest free overdraft
This account has an £100 interest-free overdraft. Go further into the red and you’ll be charged at 15.9%.
Best current account for customer service
Picking the right bank isn’t just about getting the highest interest rate, or lowest overdraft fees. Service is equally important. That’s why the Moneywise Customer Service Awards look at the companies readers trust the most each year.
Over 40,000 readers voted in the 2018 Awards, with First Direct being crowned the most trusted current account provider in the UK. Readers scored it 4.93/5 for trust, narrowly beating Metro Bank, which scored 4.85/5.
Nationwide, M&S Bank and The Co-operative Bank completed the top five.
How are Moneywise Best Buys selected?
We look across as much of the market as possible to find the best deals using industry data from Defaqto.
All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.
We select the products which offer the highest interest rate, best introductory bonus and best overdrafts, taking into account any monthly fee.
We reserve the right to use our discretion at all times.