Best Bank Accounts

Get £125 to switch, up to 3% back on bills or up to 2% interest

Martin Lewis

If you're unhappy with your bank account, you can still move, even with the coronavirus crisis. After a few months with no switching incentives, three banks now offer cash or even wine to get your custom, while other accounts give cashback or interest. This guide explains it all and helps you compare the top-pick accounts.

Top-pick bank accounts

• Top with free switching perks
  • Ends Thu. NatWest: Free £125 + £3/mth cashback
  • Ends Thu. RBS: Free £100 + £3/mth cashback
  • New. Virgin Money: free wine case + 2.02% interest
• Top for ongoing cashback
  • Santander 123 Lite: 1-3% bills cashback
• Top for savers (pays interest)
  • New. Virgin Money: 2.02% on £1,000 + free wine
  • Nationwide: 2% on £1,500, but only for a year

• Top if you're overdrawn
  • First Direct: £250 0% overdraft + great service
  • M&S Bank: £250 0% overdraft
  • Nationwide: 12mth 0% overdraft
  • Starling: Low overdraft rates
• Top if you want insurance
  • Nationwide: £500+/yr insurance for £156/yr

Other top MSE banking guides...
Packaged Accounts: save £100s on insurance
Need a business bank account?: for the self-employed
App-Based Banking: learn about the new wave of digital banks
Student Accounts: get 0% overdrafts and other perks
Safe Savings: find out how your money is protected

Five tips to find your best account

Not every bank account is right for you, so use these tips to nail YOUR best.

• 1.How to get around banks' minimum pay-in requirements to get the perks

  If you can't afford some banks' minimum monthly pay-ins, don't fret.

  If there is a minimum, you can play the system. Say you need a min £1,000, but only have £500 coming in. If you pay £500 in, withdraw it or move to another bank, then pay it back in... BINGO, that's your £1,000.

  Note: we've had reports some banks may not accept you when you apply if your income's not high enough to meet the minimum monthly pay-in.

  • See a full list of accounts ranked by minimum pay-in

    Top bank accounts (ranked by initial min pay-in)

    Account	Minimum pay-in/mth	Equivalent salary/yr needed (1)	What if I don't pay in this much?
    M&S Bank Current Account	None	N/A	No impact
    First Direct 1st Account	None	N/A	No impact
    Virgin Money Current Account	None	N/A	No impact
    Santander 123 Lite	£500	£6,000	No cashback paid
    Barclays Blue Rewards	£800	£10,000	No rewards earned
    Bank of Scotland Vantage	£1,000	£12,500	No interest paid
    Nationwide FlexDirect	£1,000	£12,500	No interest paid
    NatWest Reward	£1,250	£17,000	No rewards paid
    RBS Reward	£1,250	£17,000	No rewards paid
    Club Lloyds	£1,500	£21,300	£3/mth fee
    Halifax Reward	£1,500	£21,300	£3/mth fee and no reward that month
    HSBC Advance	£1,750	£26,000	Transferred to HSBC's Bank Account

    (1) This is an estimate and will be higher if you have anything taken out of your pay like pension or student loan contributions.

  • What counts as a month to meet the minimum pay-in amounts?

    The answer to this isn't as straightforward as you might think, as what counts as a month depends on which bank you're with.

    For example, if you bank with Santander, a month counts from the anniversary of the date that you opened the account. In contrast, bank with Lloyds and it simply follows the calendar month. It's important to clarify this with your bank to make sure you don't get penalised for missing minimum monthly pay-ins, especially if your pay is erratic.

    See our table below for the policies of the major UK banks:

    LENDER	WHAT COUNTS AS A MONTH?
    Bank of Scotland	Calendar month
    Barclays	Calendar month
    Co-op Bank	Calendar month
    First Direct	Calendar month
    Halifax	Calendar month
    Lloyds	Calendar month
    M&S Bank	Calendar month
    Nationwide	Calendar month
    NatWest/RBS	Calendar month
    Santander	Statement month
    Tesco Bank	Statement month
    TSB	Calendar month
    Last updated October 2018.

  • Why do banks have a minimum pay-in?

    It's essentially just a way to ensure you use their account as your main account.