Best current accounts

Having a bank account is part and parcel of everyday life and most people will have had a basic account or savings account since they were children. You need a bank account when you are a student for paying tuition fees, receiving grants and loans, paying for accommodation, etc. It is essential if you are applying for benefits whether in or out of work, applying for a mortgage or renting. A current account opens a lot more doors for you than a basic bank account but with so many on the market with different criteria and fee structures its important you do your homework. You do need to be over 16 (18 in most cases) and required to pay in a minimum amount either from wages, tax credits, employment benefits or pension, be able to supply proof of address and have a reasonable or good credit history if you are planning to apply for an overdraft. When shopping around for the best current accounts it is important to consider the fee structures for authorised and unauthorised transactions, interest earned on balances, rejected direct debits and standing orders as these can add up to a substantial amount if there is a charge per overdrawn transaction. Some current accounts attract a monthly fee and often come with benefits such as breakdown cover, travel insurance or cashback on purchases, as always do some quick calculations to make sure you’re not paying for features you are unlikely to use.  At Smart with Cash we have been looking at the best current accounts for rewards hopefully saving you a bit of time.

Best Current Accounts for rewards

Natwest Reward Account

  • Earn 3% in Rewards on selected household bills paid by Direct Debit
  • Only £3 a month
  • Earn reward points when you spend money on your debit card or pay for household bills from your current account when you spend at BP, Kiddicare, Jamie’s Italian, New Look, American Golf and many more retailers.

Barclays Blue Rewards

  • Pay in at least £800 each month
  • Pay out at least 2 Direct Debits each month
  • Pay your £3 monthly fee
  • Earn £7 per month
  • Earn cashback from online retails with SmartSpend
  • Overdraft available

Co-operative Bank Standard Current Account

  • Claim £150 for switching accounts
  • Pay in at least £800 each month
  • Earn up to £5.50 per month
  • Get £4 and an additional 5p per debit card transaction
  • Overdraft available

Best current accounts for interest

TSB Classic Plus Account : Get 5% AER current account interest on balances up to £2,000

  • You need to pay in £500 per month and register for online banking and paperless statements
  • No need to set up any direct debits
  • 5% cashback on your first £100 of contactless payments every month
  • £25, 0% buffer overdraft

Bank of Scotland Classic Account :

  • 3% variable interest on your balance of £3,000 – £5,000 (you have to use a free Add-on called Vantage
  • Maximum balance of £5000

Tesco Bank :

  • Earn 5 points for every £4 spent in Tesco and 1 point for every £8 everywhere else
  • 3% interest on your balance up to £3,000
  • Up to overdraft limit – 18.90% EAR interest

*Switching is a lot easier than it used to be but it is worth keeping printed statements from your old bank or download statements from your online banking before you make the switch as banks can impose charges for this following closure.