How to compare current accounts: what to look for before you switch
Your current account does more than hold your money – it can earn you interest, give you cashback on bills, and even help you build your savings. But not all accounts are created equal, and the right one for you depends on how you bank. Here’s how to compare what’s out there and find an account that works harder for you.
Why compare current accounts?
The hidden cost of staying with the wrong account
Loyalty to your bank doesn’t always pay. An account that seemed fine five years ago may now be falling short – offering no interest on your balance, charging you an account fee, or lacking the decent app features that make banking simpler. The hassle of switching is almost always smaller than people think – and what you gain is usually worth it.
How much you could save by switching
It depends on how you bank, but the numbers can be pretty decent. If your new account pays interest on your balance, that’s money you weren’t earning before. Add cashback on household bills – energy, broadband, council tax – and any interest you get from saving regularly, and you could be looking at over £100 a year without changing how you spend.
The key features to compare
Here’s a rundown of the main things to weigh up. If you’re new to the world of no-fee current accounts, you might also want to have a look at our guide, What is a free current account? What to look for beyond ‘no fee’.
Monthly fees and account maintenance costs
Most standard current accounts are free, but packaged accounts charge a monthly fee for extras like travel insurance or breakdown cover. If you’re paying, make sure the perks are things you’d actually use.
Interest earned on balances
Rates vary widely – from 0% at many high street banks to 2% or more with digital banks like Zopa. Say you keep £2,000 in your current account. If it pays 2% AER interest, like Biscuit by Zopa, that’s £40 a year you’d earn just by having your money in the right place. A nice little extra – especially when most current accounts pay 0%.
What is AER?
AER stands for annual equivalent rate. AER shows you what that adds up to over a year when the interest is compounded – basically a more complete idea than gross interest of what you’ll earn overall. It's a standard figure used by all banks, so it makes comparing rates between providers a bit easier.
Cashback and rewards programmes
Cashback current accounts reward you for spending – typically on household bills paid by Direct Debit, but sometimes on card spending at partner retailers too. If you regularly pay energy, broadband, or council tax bills from your current account, even a small cashback percentage can put real money back in your pocket over the year.
Biscuit, for example, offers 2% cashback on up to £125 of Direct Debits. You can learn more about how cashback works with our guide, How does cashback work on a current account?
Access to savings products
If building savings alongside your everyday banking matters to you, check what savings perks come with the accounts on your shortlist.
Some banks bundle savings benefits into their current account. This might mean a higher rate on an easy-access savings account or exclusive access to a savings product only available to current account customers.
Biscuit is a good example. As well as earning interest on your current account balance, you get exclusive access to Zopa’s Regular Saver – where you can save up to £300 a month at 7.10% AER* (6.87% gross) variable for six months.
Heads up that many banks, including Zopa, pay gross interest, meaning nothing is deducted for tax. If you use up your Personal Savings Allowance, you might need to pay tax on the interest you earn.
Overdraft charges and interest rates
Overdraft rates can be pretty broad – and, in some cases, steep. If you regularly dip into the red, even a few percentage points difference matters – so it’s worth comparing. And if you rarely use one, it might not be a must-have feature at all.
Customer service and digital access
Think about how you prefer to bank – whether that’s branch access, a well-rated app, or 24/7 chat support. Also check that your money is FSCS-protected (up to £120,000) and that you meet any eligibility requirements.
5 step process to compare current accounts
Try to look beyond the headline offer. A flashy cashback rate doesn’t help much if the overdraft charges sting, and a free account isn’t really free if you’re missing out on interest you could be earning. A good comparison process looks something like this:
Step 1. List your priorities
Write down what you actually need from a current account (cashback, savings, app features, branches).
Step 2. Gather the key data
Collect monthly fees, interest rates, and cashback terms for the accounts you’re considering.
Step 3. Calculate your costs and returns
Work out what each account would cost or earn you based on your typical monthly usage.
Step 4. Check eligibility
Some accounts require a minimum monthly deposit or existing relationship with the bank.
Step 5. Read the reviews
Customer service quality isn’t always obvious; look at independent review sites.
Comparing accounts side-by-side
Traditional bank current accounts
Established high street banks offer current accounts backed by branch networks, telephone banking, and decades of infrastructure. They’re reliable, widely trusted, and tend to have broad overdraft facilities. However, they can be slower to innovate and may offer lower interest rates than newer competitors.
Online-only current accounts
App-based banks, like Zopa, have raised the bar for what a current account can do. You’ll often get real-time spending notifications, built-in budgeting tools, instant card freezing, and competitive rates. Many charge no monthly fees and no extra for spending abroad, either.
Specialist accounts (premium, graduate, student)
Premium accounts bundle extra benefits – such as travel insurance, breakdown cover, or airport lounge access – in exchange for a monthly fee. Student and graduate accounts typically offer interest-free overdrafts and tailored perks.
These kinds of accounts can be a good deal if you’d genuinely use the services – but if the insurance sits untouched and the lounge pass gathers dust, you’re paying for nothing.
How to use comparison tools effectively
What online comparison tools show and miss
Comparison websites are a useful starting point for narrowing down your options, but they don’t always capture the full picture. Some features – like the quality of an app, or how responsive a bank’s customer service team is – don’t lend themselves to easy comparison tables.
Use comparison sites to shortlist two or three accounts, then dig deeper into each one: read independent reviews, check Trustpilot scores, and look at what existing customers say about their day-to-day experience. The MoneySavingExpert banking guide is a good place to start and is updated regularly.
Is it worth switching current accounts?
For most people, yes – especially if you haven’t reviewed your account in the last few years.
If your new bank is part of the Current Account Switch Service (CASS), it’ll handle the transfer of your Direct Debits, standing orders, and salary within seven working days. CASS is run by Pay.UK, and their official CASS page explains the guarantee in full.
Even if a bank isn’t part of CASS, switching can still be straightforward – you’ll just need to move your Direct Debits and standing orders yourself. Zopa has a guide to help you switch to Biscuit.
Questions to ask before switching
Before switching, it’s worth asking:
What happens to my existing Direct Debits?
Is the new account available to me given my credit history?
Are there any introductory offers that expire?
What are the overdraft terms if I need them in future?
What is the best current account for you?
There’s no single ‘best’ account – it really depends on how you use yours. Here are a few pointers based on what matters most:
Best for low fees
Look for accounts with no monthly fee and low or no charges for unarranged overdrafts and international spending. Many digital accounts fit this profile.
Best for cashback and rewards
Look for accounts offering cashback on Direct Debits or regular spending rewards. Even small percentages add up over the year.
Best for customer service
Check independent review platforms and look for banks with consistently high satisfaction scores and accessible support channels.
Best for poor credit history
Some providers are more flexible with credit checks than others. Look for accounts with low minimum deposit requirements and a simple application process.
With Biscuit, you get 2% cashback on household Direct Debits, interest on your balance, and a high-rate Regular Saver – all without paying a monthly fee. Over 1.5 million Zopa customers are already on board, and it’s rated excellent on Trustpilot. Explore Biscuit current account by Zopa.
