Get the best bank account

If your bank isn't up to scratch, check out these top current accounts - you might even get some cash as a welcoming present!

Many of us have significantly changed our financial ways over the last few years.

Friends of mine who used to mock coupon users now invite others to “voucher nights” (i.e. using a 2 for 1 voucher at a restaurant to cut the cost of a meal out). Those who only bought brand-name goods at the supermarket now happily try out own-brand products.

And we all regularly compare notes on who got the biggest saving/most loyalty points/biggest discounts when shopping in general. Indeed, many of us are now taking much more of an interest in getting the most from our hard-earned cash.

So shouldn’t the same reasoning apply when we decide where to put our money for our day-to-day banking needs?

Loyalty doesn’t pay

It’s certainly easy to stay loyal to that bank account you opened years ago. After all, who would fancy moving all of those direct debits?

But if the service you’re getting isn’t up to scratch, why shouldn’t you look to alternative accounts? Banks certainly don’t appear to feel much loyalty towards us.

What’s more, if you’re paying a monthly fee for your current account, are you getting good value for money?

Switching service

Moving current account shouldn’t be difficult. Most banks provide a tailored switching service that will transfer your direct debits and standing orders for you. If you can ensure you have money in both accounts for a few months until the switch is complete you should hopefully avoid any problems.

And there are plenty of great current accounts out there that don’t charge a thing.

Fancy some free cash?

What’s more, believe it or not you can currently make as much as £300, just for switching account.

So here’s a look at some of the best, fee-free current accounts on the market at the moment. I've highlighted which ones will treat you to a welcoming present in the bonus/promises column.

There’s certainly a lot of choice, so take a few minutes to consider what you really need. Which account user are you?

A: Do you earn a decent salary, generally have quite a high balance, never slip into overdraft and want to earn some interest on your cash?

The Santander account offers a fixed rate of 5%AER on balances up to £2,500 for 12 months (1%AER thereafter) plus a 0% overdraft for the first year. But the best bit is, you can currently receive as much as a whopping £300, just for switching.

You’ll need to deposit at least £1,000 per month (a £2 per month underfunding fee will apply if not) and use Santander's switching service to transfer all standing orders and direct debits over. Check out Make £300 by switching current accounts for more.

Lloyds TSB’s Classic Account pays 1.5%AER on balances above £1, 2%AER on balances of more than £1,000, but if you stash  £3,000-£5,000 you’ll earn a healthier 3%AER. What's more, the account offers a free £10 buffer, to cover small slips into your overdraft.

B: Do you keep as little in your current account as possible, rarely slip into your overdraft and are not worried about earning interest?

If that sounds like you, First Direct’s 1st Account may be suitable. It pays no interest, offers a free £250 overdraft and will pay you £100 to switch. You’ll need to deposit £1,500 each month or hold that as a balance, otherwise you’ll be charged £10 per month.

First Direct also consistently rates highly for its customer service, which is perhaps why it offers a further £100 should you switch to its account and then decide to move away.

But if the extras are appealing, while the Nationwide BS FlexAccount may not pay any interest it does offer pretty decent European travel insurance (worth up to £70). You’ll need to pay in £750/month to qualify.

Finally, the Halifax Reward account will pay you £5 each month, so long as you pay in £1,000, irrespective of your closing balance. In fact, you'll even get the payment if you slip into your overdraft! Remember though that you'll be charged for your overdraft. For more on this very clever account, read Earn £60 a year from an empty current account!

C: You tend to slip into overdraft at the end of the month and would like a straightforward account to earn money on your cash

Again, Santander could be the account for you with its free overdraft facility and 5%AER interest rate for 12 months.

Don’t forget savings accounts

As a final note, if you tend to hold a high balance in your current account, a good alternative can be to “sweep” the excess into a savings account where it can earn more interest.

First Direct, for example offers a Regular Saver account to its 1st Account holders, paying 8%AER for 12 months.

For more on the best savings accounts around, check out A new, market leading easy access account

More: Ditch these current accounts, quick! | Earn four times more interest on your savings