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Current accounts are used by millions of people right across the country to manage their day-to-day funds. As the Money Advice Service explains, current accounts allow individuals to receive regular payments, pay for items with a debit card, and set up direct debits to make payments. However, there are undoubtedly a whole host of options for Britons to choose from, each with different benefits, interest rates and incentives.
Speaking to Express.co.uk, Katie Brain, Insight Analyst at Defaqto offered further insight into the current account options available to Britons.
Ms Brain analysed leading interest rates which are likely to draw in many savers who are looking to make their money grow, but it is also worth noting the accounts which offer cash incentives, which can also encourage people to use them.
First looking at the interest rates of current accounts, leading the pack is the Virgin Money with 2.02 percent with a balance of just £1 needed for the highest interest.
The Bank of Scotland Vantage Current Account and the Lloyds Bank Club Account follow closely behind at two percent but require Britons to have a £4,000 balance for the highest interest.
Indeed, both accounts also require a minimum monthly deposit of £1,000 and £1,500 respectively.
Also offering two percent interest is the Nationwide FlexDirect account, which only needs a balance of £1 for the highest interest, but requires a minimum monthly deposit of £1,000.
The TSB Classic Plus Account requires a minimum monthly deposit of a lower £500 but offers 1.50 parent interest.
The Monzo Plus Account offers one percent interest up to a maximum balance of £2,000, with no minimum monthly deposit needed.
Those choosing a Santander 123 Current Account will receive 0.60 percent interest but need to deposit at least £500 a month, and those at Starling Bank will get a lower 0.05 percent rate but for no minimum monthly deposit.
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Monthly rewards can also offer an important draw for many Britons, and there are a number of available options.
At Santander, the 123 and the 123 Lite Current Accounts have an example reward payment per month of £8, based on a £400 spend. The Lite account charges £1 monthly, and the current account £5 monthly for a required deposit of £500.
Britons can also get a 1/2/3 percent cash back on certain monthly bills, which are worth checking either online or in branch.
At Danske Bank, the cash reward account has an example reward payment of £7 per month, for a monthly deposit of £1,200.
The customer must have logged on to eBanking or mobile banking to receive their reward payment, and the monthly charge for this account is £2.
At Barclays, the Bank Account with Blue Rewards is a way of thanking customers, who will receive £3.50 for each of the first two Direct Debits they pay.
A monthly deposit of £800 is needed, with a charge of £4 per month.
Halifax’s Reward Current Account has no monthly charge, and allows Britons to pick their reward – either a monthly £5 payment or a lifestyle reward; three selected digital magazine subscriptions per month, two digital film rentals per month, or one cinema ticket per month.
To receive the reward, the account must remain in credit throughout the previous month, and either at least £500 must be spent using the debit card, or the balance kept at £5,000 or above.
The Co-Op Bank’s Current Account with Everyday Rewards offers a reward payment per month of up to £5, with a monthly deposit of £800 required.
This is as long as the customer stays in credit or in their agreed overdraft limit, logs into online banking or the mobile banking app, opts for paperless statements, and has at least four direct debits paid out.
Finally, the Natwest and Royal Bank of Scotland Reward accounts have very similar benefits, with a monthly deposit of £1,250 required for both.
To earn £4 in rewards, a minimum of two direct debits of at least £2 each or more per month must be paid from a qualifying account.
And to earn an additional £1 in rewards, the customer is required to log in to the mobile banking app at least once a month.
For both accounts, there is a monthly charge of £2 that Britons are required to meet.
Current accounts can be opened in a variety of ways including in person, by post, online or over the phone.
And many familiar banks offer a free seven-day Current Account switching service to help make the transition period as smooth as possible.
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