The Best Current Account August 2021 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 06/08/2021

Although many consumers stick with the same bank account for years, sometimes decades, it can be worthwhile switching bank accounts to take advantage of new deals, enhanced features and switching offers.

For those considering switching banks accounts, below we’ve highlighted some of the best accounts currently available in our charts.

Best bank accounts with an overdraft

One of the best bank accounts that offers an overdraft feature on the market today is Starling Bank’s Current Account – Age 18 and over. This account pays interest at a rate of 0.05% AER on balances and there are no monthly or annual fees. Its overdraft rate is 15.00% APR variable. The account can be managed by post, in post offices, by phone, online, via mobile app and text alerts. Find out more about this account here.

Also offering a competitive bank account is first direct with its 1st Account. This account does not charge a monthly or annual fee. It charges an overdraft rate of 39.90% APR variable and borrowers have a £250 interest-free overdraft buffer before the interest rate is charged. It can be managed in branch, in post offices, by phone, online, via mobile app and text alerts. Find out more about this account here.

Virgin Money’s M Plus Account is also a highly competitive current account, which also includes a switching offer. This account pays an interest rate of 2.02% AER on balances of up to £1,000. It charges an overdraft rate of 19.9% APR and customers must open a linked savings account at the same time. Those switching to this account using CASS will receive £150 Virgin Experience Day Gift Card. It can be managed in branch, by post, in post offices, by phone, online, via mobile app and text alerts.

Compare all bank accounts with an overdraft here.

Best high interest current accounts

Those with high bank balances may want to consider a bank account that offers a high interest rate. Virgin Money’s M Plus Account and Club M Account both have the highest interest rate on accounts available to those over the age of 19. These accounts both pay 2.02% AER on balances of up to £1,000 but no interest is paid on deposits over £1,000. M Plus Account does not charge any fees, meanwhile Club M Account charges £14.50 per month for which customers can get a range of extra benefits including mobile phone insurance and breakdown cover. Both accounts are part of a switching offer that sees customers who switch to the account using CASS receive £150 Virgin Experience Days Gift Card. They also both offer an overdraft for which they charge 19.9% APR variable. It can be managed in branch, by post, in post offices, by phone, online, via mobile app and text alerts.

Nationwide Building Society’s FlexDirect – Funded pays 2.00% on balances of up to £1,500 for the 12 months. A minimum of £1,000 must be paid into the account each month. This account offers an overdraft facility, for which it charges 39.9% APR variable. It can be managed by post, in post offices, online, via mobile app and text alerts. Find out more about this account here

Compare all high interest current accounts here.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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