Best current accounts with rewards in the UK 2022

What if you could choose the benefits you prefer for your current account? We're not quite there yet, but there are a few options out there. Let's have a look.

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Compare current accounts with rewards

Table: sorted by switching bonus
Name Product Ratings Account fees Funding requirement Interest (AER) Arranged overdraft Incentive Representative example Link
OFFER
First Direct Current Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
No minimum funding requirement
0% AER
An interest-free, arranged overdraft up to £250, then 39.9% EAR (variable)
£130 when you switch.
Current account switch service guarantee badge
Earn 1.00% AER/gross with the linked Regular Saver Account and access a £250 interest-free overdraft (subject to status)
Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at 30.5% (0% EAR variable p.a on first £250, 39.9% thereafter).
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OFFER
HSBC Advance Bank Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
No minimum funding requirement
0% AER
39.9% EAR variable
£150 for new accounts when a minimum of two Direct Debits or Standing Orders are switched using the Current Account Switching Service within 30 days of account opening and pay in at least £1,500 within 60 days of account opening. Plus earn 1.00% AER / gross interest with the linked HSBC Regular Saver.
Current account switch service guarantee badge
Plus earn 1.00% AER / gross interest with the linked HSBC Regular Saver
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OFFER
Everyday Current Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
No minimum funding requirement
0% AER
39.94% EAR variable
Eligible for Retailer Offers, customers must use online or mobile banking to qualify.
Current account switch service guarantee badge
This everyday account from Santander has no monthly fee and no minimum funding requirements to maintain it, making it ideal for those who are looking for a straightforward, fuss-free bank account. The account offers an arranged overdraft facility and enables you to earn up to 15% cashback with the bank’s Retailer Offers scheme. To activate the scheme, simply switch it on in mobile banking or online banking and spend at certain retailers including the Co-op, Morrisons, Just Eat and Costa. The account can be easily opened online or in branch if you prefer, and it can be managed online, in branch, over the phone or via the app. To qualify you will need to be at least 18 years old and a UK resident.
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable.
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Revolut Standard
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
No minimum funding requirement
0% AER
NA
Join over 18 million Revolut customers and exchange money with no hidden fees.
No account fee. Card delivery charge of £4.99
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Current Account - Age 18 and over
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
No minimum funding requirement
0.05% AER
15% EAR variable
No fees overseas.
Current account switch service guarantee badge
No fees for spending or withdrawing cash overseas - currencies are converted at Mastercard’s standard exchange rate
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 15% EAR variable.
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123 Current Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£4 per month
Min. £500 Per Month
0.3% AER
39.94% EAR variable
Eligible for Retailer Offers, customers must use online or mobile banking to qualify.
Current account switch service guarantee badgeRepresentative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable. Account fee of £4 per month.
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thinkmoney Current Account
Finder score
★★★★★
★★★★★
£10 per month
/ £15 per month
No minimum funding requirement
0% AER
N/A
Guaranteed acceptance.
Current account switch service guarantee badge Account fee of £10 per month or £15 per month.
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Premier Current Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£0
Eligibility criteria applies. See below.
0% AER
N/A
Eligible for Barclays Blue Rewards.
Current account switch service guarantee badge
As a Premier customer, you’ll have access to a range of exclusive Premier mortgages, savings accounts and more. Plus, join Barclays Avios Rewards for £12 a month and switch your account to collect 25,000 Avios to put towards your next trip with British Airways. Eligibility, fees and conditions apply.
To be eligible for Premier banking you’ll need to have either (1) An annual gross income of £75,000 or more paid into a Barclays current account or (2) a minimum of £100,000 saved or invested with Barclays. T&Cs apply. To be eligible for the 25,000 Avios sign up bonus, customers need to move their existing current account to Barclays via the Current Account Switching Service, within 3 months of joining Barclays Avios Rewards.
Representative example: 0% interest (variable) payable on arranged overdrafts up to £500. If you use an arranged overdraft above this amount the annual rate of interest is 35.0% (variable). 19.5% APR Representative (variable), based on a £1,200 overdraft balance. Overdrafts, including interest free amounts, are subject to application, financial circumstances and borrowing history.
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Cashplus Personal Account
Finder score
★★★★★
★★★★★
£5.95 per month
No minimum funding requirement
0% AER
N/A
Guaranteed acceptance plus a credit building feature.
Account fee of £5.95 per month.
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123 Lite Current Account
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
£2 per month
Min. £500 Per Month
0% AER
39.94% EAR variable
Eligible for Retailer Offers, customers must use online or mobile banking to qualify.
Current account switch service guarantee badgeRepresentative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable. Account fee of £2 per month.
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Compare up to 4 providers

Choose the right current account and you can not only easily manage your money and spending, but also get some benefits and rewards, from cashback on your bills to travel insurance or breakdown cover. Here’s our guide to current accounts with rewards, how they work and how to choose the right one for you.

Latest reviews of current accounts with rewards

HSBC - HSBC Advance Bank Account

£0.01

Minimum opening balance

£0

Account fees

0% AER

Interest (AER)

£150 for new accounts when a minimum of two Direct Debits or Standing Orders are switched using the Current Account Switching Service within 30 days of account opening and pay in at least £1,500 within 60 days of account opening. Plus earn 1.00% AER / gross interest with the linked HSBC Regular Saver.
This premium current account gives you access to a linked regular saver account, plus offers and discounts via HSBC’s “Home & Away” loyalty scheme. You can also use the account to make fee-free international transfers. Customers can manage their account online, via a smartphone app, by phone and in branch. The account’s smartphone app allows you to pay cheques into your account by scanning them with your device. Advance customers with arranged overdrafts can sign up to receive text message alerts to tell them when they’re about to enter their overdraft, so they can take action to avoid fees.
  • Exclusive worldwide offers and discounts
  • Access to competitive savings account
  • Fee-free international transfers to other HSBC accounts
  • Cash withdrawal limit of £500 per day
  • No monthly account fee
  • You’ll need to meet set eligibility criteria
  • Interest charged on overdraft
  • Foreign transaction fee applies if you use your card abroad
Interest rate
0%
AER

Minimum opening balance £0.01
Minimum operating balance £0.01
Switch service guarantee Yes
Account fee £0
Overseas card transactions 2.75%
Overseas cash withdrawals 2.75%

first direct - First Direct Current Account

£0

Minimum opening balance

£0

Account fees

0% AER

Interest (AER)

£130 when you switch.
This online fee-free current account contains a range of features, including the option to open a linked regular savings account, pay in cash and cheques in branches of HSBC and the Post Office, and manage your account online and via app. You can also set up “sweep” payments, transferring any remaining money in your account on a given day to a First Direct savings account. The bank boasts a strong customer service reputation, especially when it comes to telephone banking services. First Direct regularly offers incentive payments to encourage people to switch to them.
Representative example: Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at 30.5% (0% EAR variable p.a on first £250, 39.9% thereafter).
  • Interest-free overdraft
  • Award winning customer service
  • No monthly fee
  • Link to savings account
  • Interest-free overdraft is only up to £250
  • No interest paid on in-credit balances
  • Cannot bank in branch
Interest rate 0%
AER

Minimum opening balance £0
Minimum operating balance £0
Switch service guarantee Yes
Account fee £0
Overseas card transactions 2.75%
Overseas cash withdrawals 2.75%

Virgin Money - Virgin Money Current Account - Age 18 and over

£0.01

Minimum opening balance

£0

Account fees

2.02% AER

Interest (AER)

Apply online from the Virgin Red app or website and complete a full current account switch using the Current Account Switch Service to receive 15,000 points.
This account from Virgin Money offers a host of benefits without the monthly fee. Account holders can earn a competitive rate of interest on balances up to £1,000, plus take advantage of an exclusive linked savings account if they want to squirrel away any spare cash. On top of this, users will also be able to benefit from fee-free foreign transactions and cash withdrawals if they use their debit card abroad. The account also offers an arranged overdraft and can easily be managed online or via the app. The app can help users track their transactions and get better at budgeting. To qualify for the account you’ll need to be at least 18 years old and have a good credit score.
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 19.9% EAR variable .
  • No monthly fee
  • Pays interest on in-credit balances
  • Fee-free foreign transactions
  • Easy to apply for and manage account online or via the ap
  • High interest charged on overdrafts
  • Interest only payable on small balances
  • You’ll need a good credit score to apply
Interest rate
2.02%
AER

Minimum opening balance £0.01
Minimum operating balance £0.01
Switch service guarantee Yes
Account fee £0
Overseas card transactions £0
Overseas cash withdrawals £0

Virgin Money - Club M Account - Age 18 and over

Club M Account - Age 18 and over

£0.01

Minimum opening balance

£14.5 per month

Account fees

2.02% AER

Interest (AER)

Apply online from the Virgin Red app or website and complete a full current account switch using the Current Account Switch Service to receive 15,000 points.
In return for a monthly account maintenance fee, the Virgin Money Club M account offers a range of benefits. These include interest paid on credit balances and an exclusive linked savings account. Account holders can also enjoy worldwide family multi-trip travel insurance, including their own concierge service and 24-hour medical advice. Plus, the account's contactless debit card does not charge fees for foreign spending or making cash withdrawals in the UK or abroad. A range of gadgets, including mobile phones, laptops and cameras will also be insured worldwide and you’ll have UK breakdown cover for your car. You’ll also be able to arrange an overdraft and you can apply for the account online or over the phone as long as you’re aged 18 or over. In addition, the Virgin Money app can help you set up budgets, top up your savings and sort out your spending.
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 19.9% EAR variable . Account fee of £14.5 per month.
  • Perks such as worldwide travel insurance, gadget insurance and UK breakdown cover
  • No fees for using your card abroad
  • Interest paid on credit balances
  • Exclusive linked savings account
  • Monthly fee applies
  • Interest charged on overdraft
Interest rate
2.02%
AER

Minimum opening balance £0.01
Minimum operating balance £0.01
Switch service guarantee Yes
Account fee £14.5 per month
Overseas card transactions £0
Overseas cash withdrawals £0

How do rewards current accounts work?

It very much depends on the deal you’re looking at and on the benefits you’re trying to secure. As a rule of thumb, you’ll only get the rewards or benefits if you use the account as your main account, so your bank may ask you to meet certain conditions, such as paying a certain sum into the account every month or having a certain number of direct debits with it.

Moreover, rewards current accounts often feature great introductory offers that are meant to attract new customers but will expire after a year. If that’s the case, don’t forget to set an alarm on your calendar and compare accounts again.

Finally, depending on the perks and benefits you’re interested in, the account may also charge a monthly fee.

Which benefits can I get with my current account?

Depending on what your financial life looks like, some perks may be more rewarding than others, so try to think about how you would use them, not just which is the best in general.

Switching incentives

This technique used by banks to snatch customers from each other isn’t exactly subtle, but it’s good news for us. At times, you can get up to £175 in cash just to use the CASS (current account switch service) to move your main current account from one bank to the other.

Switching through CASS is free and isn’t much of a hassle: once you’ve given all your details to your new bank, it will handle the process within seven working days, including redirecting all your incoming payments, transferring your direct debits and closing your old account. Find specific switching deals here.

Interest rate

Believe it or not, some current accounts do pay an interest on balances. Yay. However, all that glitters is not gold, and banks usually cap the balance up to which the interest is paid.

For this reason, they’re able to offer better rates than they can on easy-access savings accounts; but if you’re a regular saver, you’ll probably reach the limit fairly quickly and will need a savings account anyway.

Cashback

This is a fairly common current account feature, but it doesn’t usually apply to all your debit card spending. You’ll get cashback when you shop at a bank’s partner retailers instead, so it’s worth checking them out in advance and see if there are any you like in the list.

With some current accounts, you can get cashback on your bills, which can be quite rewarding if you’re the person in charge of paying them in your household. It also means that you can predict quite precisely how much you will earn in cashback every month. Discover more current accounts with cashback.

Other perks and benefits

You can easily secure a current account that also offers some kind of insurance package (for example travel insurance, device insurance or breakdown cover), but it will almost certainly come with a monthly fee.

If you’re considering this, you should see how much it would cost to pay for the insurance independently first, think about how often you’d need it (no point in paying for travel insurance for a whole year if you only go on holiday at Christmas) and weigh up the pros and cons.

Am I eligible?

You should always check the eligibility criteria carefully before applying for a rewards current account. Specific criteria will depend on the bank you’re considering, but they’ll usually involve paying a certain sum into the account every month.

Moreover, many banks only offer their best perks and benefits to top-tier customers (those that pay a high annual salary into their accounts or have a certain amount in savings with the same institution) to whom they offer so-called “premium accounts”. They’re packed with enticing features, but unfortunately most of us won’t qualify for them.

Rewards current accounts fees

With rewards current accounts, you should expect two main kinds of fees:

  • Monthly fees. Not all rewards current accounts will charge one, but you should definitely expect it if you’re after the best benefits.
  • Foreign currency transaction fees. Finding a rewards current account that allows fee-free spending abroad is like looking for a needle in a haystack, so you may want to open a separate current account or get yourself a credit card that doesn’t charge foreign transaction fees for when you travel abroad.

If the account you’re considering comes for a monthly fee, you’re in for some maths to try and figure out if the benefits you’re after are worth the price. Will you spend enough in bills to make it worth it? How much would it be to purchase insurance independently?

Pros and cons of getting current accounts with rewards

  • They can make your money go further. Whether its switching incentive payments, preferential interest rates for in-credit balances or discounts with selected retailers, grabbing a current account with rewards can help your money go further.
  • Cashback. The ability to earn cashback on certain transactions is a fairly common perk with these types of current accounts.
  • You can use the Current Account Switching Service. Switching to a current account with rewards often comes with rewards that you can only unlock if you make the new account your main current account. To make the switching process easer, most banks now offer to switch you to their account using CASS, which simplifies the process by moving all your direct debits for you.
  • Some perks are for a limited time only. Rewards are largely designed by banks to tempt in new customers. Some of these eye-catching features, like preferential interest rates on balances are temporary.
  • Rewards accounts can come with regular fees. Many reward current accounts, especially those with the best rewards, charge account holders a monthly fee.

The bottom line

Switching to a current account with rewards can be a great way to give your finances a temporary boost, as many offer switching incentive payments and interest on current balances.

As a rule of thumb, you’ll usually only get the rewards or benefits if you use the account as your main account. So your bank may ask you to meet certain conditions, such as paying a certain sum into the account every month or having a certain number of direct debits with it. If you’re willing and able to meet these conditions, and happy to pay the monthly fees that come with many of these types of accounts, then a reward current account may offer good value for a set period of time.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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