The top nine current accounts

If you're in the market for a new current account, these are the deals to consider.

Brits don’t like to switch bank accounts generally, settling for the ‘better the devil you know’ approach rather than switching to the best deal for them.

That’s a crazy approach. If you've been stuck on the same naff account for a while, check out these great current accounts which may improve your lot!

The best current accounts for savers

It seems incredible, but you can actually earn a higher rate of interest on your current account than most savings accounts now offer.

#1 – Santander Preferred Account

The market leader comes from Santander, with its Preferred Current Account, paying a whopping 5% interest on all balances up to £2,500. You can even earn as much as £300 in cashback just for taking out the account! Check out Make £300 by switching current accounts for more.

You will need to switch over your direct debits and pay in £1,000 a month though. What’s more, it’s worth remembering that Santander is renowned for offering pretty poor customer service, though things seem to be improving recently, as we explained in Santander reduces complaints by a third.

#2 – Lloyds TSB with Vantage

The Santander account is great if you only have a fairly modest sum in your current account, but what if you tend to have more than that? If that’s you, then the Lloyds TSB Current Account with Vantage may be the answer.

The account pays a top rate of interest of 3% on balances between £3,000 and £5,000. However, the bank employs tiered rates, so should your balance fall below £1,000 your rate of interest will fall to 2%.

The best current accounts for overdrafts

While it’s lovely to have a hunk of cash in your current account earning interest, for many of us – myself included – it’s just as important to ensure there’s a decent overdraft facility in place just in case.

Once again, the Santander Preferred Current Account is top of the tree, offering a frankly incredible 12 months free of interest on overdrafts. What’s more, they’ll match your existing overdraft, and may even extend the overdraft to £5,000!

But there are other accounts worth considering.

#3 - First Direct 1st Account

Another super account comes from First Direct, another universally popular provider among lovemoney.com readers. Indeed, the bank consistently picks up all of the top customer service awards, such is its focus on putting customers first.

And if you’re likely to need to use an overdraft, its 1st Account is a terrific option, offering a completely interest-free £250 facility.

What’s more, you get £100 just for taking out the account. And if you don’t like it and want to move elsewhere, you’ll get another £100 on top!

#4 - Smile

One that I know many readers like is the Smile current account.

The online bank is very popular – it won three different current account awards in 2010 among lovemoney.com readers. And its overdraft facility is really good, with a £500 fee-free overdraft for the first year.

#5 - Co-operative Bank Current Account Plus

I also like the Current Account Plus from the Co-operative Bank.

Not only do users benefit from exclusive mortgage deals, but they can also take advantage of a fee-free £200 overdraft facility.

You’ll need to pay in £800 a month though.

Best for travellers

Current accounts are not just designed for domestic use - some are tailored to appeal to those of you who need access to your cash abroad.

#6 – Santander Zero

The Santander Zero account is a very smart account if you spend a lot of time overseas. Not only do you get to enjoy 5% interest on balance up to £2,500, and a 0% overdraft for four months, but you’ll pay absolutely no fees if you use cash machines or your debit card anywhere in the world!

Sadly, the account is not open to everyone – you’ll need to be an existing mortgage, savings or investment customer of Santander to qualify.

#7 – Santander Premium Account

I’m not a big fan of packaged current accounts at all, but if you do a lot of travelling, the Santander Premium account could be a good option.

You still enjoy 5% on your money, and could get up to £300 in cashback for taking out the account. But the big selling point really is the benefits that come with the account. You get annual worldwide family travel insurance, access to special airport lounges, as well as commission-free travel money, delivered free of charge.

On the downside, you will need to shell out £20 a month for the account, though it boasts all sorts of other benefits beyond those related to travel.

#8 – Nationwide FlexAccount

Another good account is the FlexAccount from Nationwide. The account comes with free European multi-trip travel insurance worth up to £70.

You will need to pay in £750 a month to qualify though, and you won’t earn a penny in interest.

Get paid £60 for an empty current account!

And finally, one of the smartest accounts around:

#9 – Halifax Reward Account

The Halifax Reward Account is not an easy account to categorise. It’s not good for people that go into their overdraft, charging £1 a day up to a maximum of £5 a month. And it doesn’t pay a penny in interest on positive balances. So why is it so good?

What’s great about the account is that even if you spend all of your money every month, you still get a reward, in the shape of a monthly £5 payment. So long as you put £1,000 into the account each month, it doesn’t matter if your finishing balance is £1,000 or £1, you still get that £5 payment.

These are just my favourite current accounts. Which is your favourite current account, and why?