UK bank accounts: Switch offers and perks intensify as competition grows

British savers are again seeing intensified competition among current accounts as banks roll out incentives to win new customers, even as the broader switching trend remains modest in the context of a large adult population. The Current Account Switch Service (Cass) shows 2024 marked the second consecutive year with more than one million switches, underscoring a market where big signs of value still attract attention. But with roughly 54 million adults in the UK, many people still stay put with their existing banks, even when better deals are available.

To help consumers navigate the options, This is Money has compiled a guide to the best current accounts across categories such as free cash, in-credit interest and perks. The market features offers that can add up quickly: switch bonuses of up to £200 from major banks such as Lloyds, First Direct and NatWest, plus evergreen perks like reward schemes, fee-free spending abroad and linked savings rates. Nationwide, the country’s largest building society, has also leaned into the incentive space in recent years, paying out bonuses to qualifying members and stressing its commitment to keeping branches open. The landscape is further enriched by digital challengers offering attractive linked savings rates and straightforward online interfaces, with Starling, Monzo and Chase among the names frequently cited in deals.

Among the accounts highlighted in the current-account roundups, several are widely cited for upfront switching bonuses and ongoing perks. Club Lloyds is again offering a £200 switching bonus, but it carries a monthly charge of £5 unless a £2,000 monthly deposit is met. The account also provides an option to choose a yearly reward such as Disney+ or cinema tickets and pays a limited amount of interest in credit, while offering fee-free spending abroad when the criteria are met. First Direct’s 1st Account remains a strong draw for customer service, listed with a £175 switch bonus and a £250 interest-free overdraft, though it operates without physical branches and requires online banking activity to unlock benefits. NatWest has also reintroduced a £175 switching bonus for select accounts, with conditions including a £1,250 deposit within a two-month window and ongoing app activity.

For savers prioritising in-credit interest, Nationwide’s FlexDirect is repeatedly noted for its introductory rate: 5% interest on balances up to £1,500 for the first year, alongside a cashback feature on qualifying card spends. The caveat is that the rate usually reverts after the initial period and that deposits must be kept above a minimum to sustain the offers. Kroo, a newer challenger bank, advertises 2.9% interest on balances up to £500,000 with no special hoops to unlock the rate, though it remains an app-based, digital-only option with FSCS protection up to £85,000. Other banks with notable in-credit rates include Santander Edge Up (2.5% on balances up to £25,000 with a £5 monthly fee, plus 1% monthly cashback on certain bills up to £15) and Zopa Bank, which markets a current account with a 2% balance-related return that is fixed for 12 months before moving to a variable rate.

In a separate category, cashback-focused current accounts continue to attract attention, though some offers have tightened. Chase, the digital-first arm of JP Morgan, remains in the market with 1% cashback up to £15 a month on eligible groceries, transport and fuel, available to new customers in the first year. After the initial period, ongoing cashback requires meeting a monthly deposit threshold. Santander’s Edge Up remains a popular choice for those who can meet the monthly direct-debit and deposit requirements, offering 1% cashback on household bills up to £15 per month but with a £5 monthly fee. Both accounts waive some fees for international card use, but the overall value hinges on whether customers can reliably meet the spending or deposit criteria.

A growing share of banking is clearly digital-first, and Starling Bank is frequently cited for customer service and convenience. This challenger offers a linked easy-access savings account with a notable 3.75% variable rate, alongside fee-free foreign spending and 24/7 UK-based support via the app. While Starling attracts praise for its tools and accessibility, it lacks physical branches, which may matter to some customers who prefer in-person service.

Five of the best cash Isas are also highlighted in This is Money’s broader savings coverage, with digital offers continuing to shape the market. Trading 212 is listed for easy-access Isa savings at around 4.38% with a small opening requirement and a non-restrictive withdrawal policy. Cynergy Bank’s easy-access Isa is shown at about 4.35%, Vida Savings offers a one-year fix at roughly 4.31%, and United Trust Bank has a two-year fix around 4.22%; these deals typically require minimum deposits and may impose transfer or transfer-in rules. The editor’s note accompanying these Isas emphasizes that terms and conditions apply and that investors should check the latest rates as offers change.

In practice, consumers weighing the best bank accounts should consider several overlapping factors: the size and timing of switch bonuses, monthly fees and the deposit requirements to unlock them, how easy it is to access branch services or rely solely on digital tools, and the level of additional perks such as insurance cover, cashback, linked savings yields and foreign-spending policies. A cautious approach is advisable, particularly given the potential for introductory offers to end or to shift as market conditions evolve.

As the market remains dynamic, shoppers should review a broad slate of options and compare the total value over a 12- to 24-month horizon. For those who value branch access and in-person service, Nationwide’s Footprint remains a differentiator, while digital-first banks offer compelling interest and savings opportunities that may exceed traditional high-street banks on a like-for-like basis. In any case, consumers are encouraged to verify current terms before applying, ensure they meet any monthly deposit or direct-debit criteria, and consider how often they plan to switch accounts in the coming year. The landscape suggests there is still money to be saved through careful shopping, even as the headline switch figures show progress in a market long characterized by inertia.