How to get a great bank account whatever you earn
Picking a current account can be a struggle.
With switching incentives, credit interest, cashback, fee-free overdrafts, access to exclusive products and loyalty points on offer it can be difficult to determine which is the best to go for.
One way to whittle down your options is to look at what accounts you may be eligible for based on what you are likely to deposit each month.
Many of the top deals have caveats that link account benefits to a minimum monthly deposit.
So we've set out the best current accounts on offer right now according to their minimum funding requirements so you can clearly see which you might qualify for and get the most out of.
No minimum
If you're not keen on having to pay in a set amount each month, there are six decent current accounts you could go for that don't require a minimum monthly deposit.
The M&S Bank Current Account is a fee-free account that offers exclusive preferential rates on savings, personal loans and travel money. The account also comes with a £500 overdraft where the first £100 is fee-free, as well as the chance to build up M&S Loyalty points for rewards. You'll get one point for every £1 spent in store or online at M&S. To sweeten the deal those that switch to the account will also get a £100 M&S gift card.
The NatWest Select Current Account and the RBS Select Current Account are two straightforward deals that are also fee-free. There's no bonus for switching but both offer the chance to earn Cashback Plus Rewards using your debit card. You'll get at least 1% of Rewards on qualifying purchases at participating retailers and 1% of Rewards on all contactless transactions.
Though it's only available in certain parts of the UK you might prefer to go for the Post Office Standard Account. It also offers straightforward fee-free banking and comes with a competitive overdraft charging 14.9% EAR.
Alternatively there's the Barclays Bank Account. It also offers fee-free banking with all the basics but comes with access to SmartSpend which allows you to earn cashback and save money with selected brands online. You can also choose to personalise the account with special 'Packs' for a monthly fee. However, to access the new Blue Rewards scheme, which pays £7 a month to current account customers (after a £3 monthly fee), you need to deposit £800 a month, set up two direct debits and sign up to online banking or the Barclays mobile app.
Lastly there's the Metro Bank Current Account, which is fee-free and may suit you if you want to save money on using your debit card abroad as you get fee-free debit card transactions in Europe.
£500 per month
If you're able to deposit at least £500 a month your options open up three more accounts from TSB, Santander and HSBC.
The TSB Classic Plus Current Account pays a market-leading 5% credit interest on balances up to £2,000. In order to receive interest on your balance you will need to deposit a minimum of £500 as well as register for internet banking as well as opt for paperless statements and correspondence.
With the Santander 123 Current Account you get credit interest on balances and cashback on direct debits. You can earn 1% interest on balances from £1,000, 2% on balances from £2,000 and 3% on balances from £3,000 up to £20,000. Each month you can also earn 1% cashback on water and Council Tax bills as well as Santander mortgage repayments, 2% on gas and electricity bills plus 3% on mobile, home phone, broadband and paid for TV packages. In order to receive interest and cashback you'll need to deposit £500 a month, pay a monthly account fee of £5 and set up at least two different Direct Debits.
And then there's the HSBC Bank Account. It doesn't offer credit interest or cashback but it is fee-free and provides access to exclusive rates on loans, savings accounts and mortgages. You need to pay in at least £500 a month otherwise HSBC will downgrade the account to a Current Account or close it down altogether. However, those under the age of 24 aren't subject to these conditions.
£750 per month
If you can deposit at least £750 a month then you are eligible for two more accounts from Tesco and Halifax.
The Tesco Bank Current Account pays 3% credit interest on balances up to £3,000 and also offers the chance to collect Clubcard points on all your debit card spending. You get one Clubcard point for every £4 spent in Tesco and one Clubcard point for every £8 spent elsewhere. The account is fee-free, providing you pay in the minimum £750 a month. Each month you fail to do so you'll have to pay a £5 fee.
Alternatively there's the Halifax Reward Current Account, which comes with an enticing £125 cash bonus offer for switching. Plus as long as you pay in £750 a month, pay two different direct debits and stay in credit you'll get an ongoing £5 monthly reward. Those registered for online banking will also be able to take advantage of Cashback Extras which pays cashback on spending at certain online retailers.
£1,000 per month
Now for the accounts towards the top end of the scale. You'll need to be able to deposit £1,000 a month to qualify for these five from First Direct, Nationwide, Bank of Scotland, Clydesdale Bank and Yorkshire Bank.
First Direct is offering a £100 cash incentive to those that switch to its 1st Account. The online bank is famed for its top levels of customer service, which it backs up with a £100 guarantee. It will pay £100 if you aren't satisfied with the account within the first 12 months and want to leave. You'll also get exclusive access to First Direct mortgages, savings, loans and credit cards as well as a £250 interest-free overdraft. Depositing at least £1,000 a month means you avoid the £10 monthly fee.
Then there's the Nationwide BS FlexDirect Current Account, which like the TSB Classic Plus Current Account, also pays a market-leading 5% credit interest but on balances up to £2,500. If you aren't able to pay in £1,000 a month you won't qualify for interest. It also comes with a 12-month fee-free overdraft and access to 'Flexclusive' rates on savings, loans, credit cards and mortgages.
Elsewhere the Bank of Scotland Classic Account pays tiered interest on credit balances when you add Vantage. You'll get 1.5% on balances from £1, 2% on balances from £1,000 and 3% on balances from £3,000 up to £5,000. Vantage is free but you'll need to pay in at least £1,000 to qualify for the interest it offers. As well as interest you'll be able to earn up to 15% cashback through the Everyday Offers scheme and you'll get the chance to win one of your purchases back up to the value of £500 on a monthly basis with 'It's on Us'.
Alternatively there's the Clydesdale Bank Current Account Direct and the Yorkshire Bank Current Account Direct, which both offer fee-free banking and pay 2% credit interest on balances up to £3,000. You'll need to pay in £1,000 a month to benefit from the interest. Right now you can get a £150 cash bonus if you switch to the account, link two direct debits and pay in £1,000 a month.
£1,500 per month
If you are prepared to deposit at least £1,500 a month, you can go for the Lloyds Bank Club Lloyds Current Account.
The account pays tiered interest on credit balances. You'll get 1% on balances from £1, 2% on balances from £2,000 and 4% on balances from £4,000 up to £5,000. But in order to earn interest you will need to set up at least two different direct debits on the account.
The account also offers exclusive access to Lloyds Bank savings and mortgages products, a £100 fee-free overdraft and the choice of one Lifestyle Benefit each year (Gourmet Society membership, six Vue cinema tickets or an annual magazine subscription).
If you fail to deposit at least £1,500 each month though, you'll have to pay a £5 fee.
