Choosing the right bank accounts gives you the opportunity to make your money work harder for you, whether that’s earning extra interest on your balances, benefiting from cashback on everyday spending, or taking advantage of switching bonuses.
Andrew Hagger of MoneyComms says: “Not all current accounts are the same and if you’re someone who doesn’t use an overdraft then it makes sense to try to find an account offering rewards, cash back or a decent return on in credit balances.”
Look for in-credit interest
Most current accounts pay little or no interest on positive balances, but a handful of high-interest current accounts do. It’s worth checking these out, but be aware that they usually come with caps or conditions.
Current accounts paying in-credit interest include:
- Nationwide FlexDirect
Offers 5% AER on credit balances up to £1,500 for 12 months for new customers meeting qualifying criteria.
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- Kroo Current Account
Pays a tracker rate at 1.10% below the Bank of England base rate, meaning it pays 2.9% as of 29 September 2025. This is paid on balances up to £500,000.
- Santander Edge Up
Monthly interest of 2.50% AER (variable) on balances up to £25,000.
- Zopa Biscuit
The new Zopa current account pays 2% AER interest on the whole balance, with the rate fixed for 12 months.
Open a linked savings accounts
Several UK banks offer competitive interest rates on regular savings accounts ‘linked’ to current accounts. This means you need to have the bank’s current account to be eligible. Regular savers are designed for monthly deposits of between £25 and £300.
Here are some of best linked regular savers currently on the market:
- Zopa Regular Saver
Pays 7.10% for 12 months, with a maximum monthly deposit of £300. You need to have a Zopa current account to be eligible.
- First Direct Regular Saver account
Pays 7% for 12 months, with a maximum monthly deposit of £300. You need to have a First Direct 1st account to be eligible.
- Co-operative Bank Regular Saver Issue 1
Pays 7% for 12 months, with a maximum monthly deposit of £250. You need to have a Co-op current account to be eligible.
Earn cashback on shopping and household bills
Many banks offer cashback on current accounts in various ways. Some pay cashback on debit card spending, usually in specific categories such as groceries, travel or fuel, and typically with a monthly cap on the amount you can earn.
Others reward you for paying household bills like electricity, broadband or council tax by direct debit. A few combine both types of reward, offering cashback on everyday card spending as well as on bill payments.
These accounts usually come with conditions. You may need to pay a monthly fee, deposit a minimum amount each month, or keep a set number of active direct debits to qualify.
Current accounts paying cashback include:
- Chase
Offers 1% cashback on eligible categories (supermarkets, everyday transport and fuel) during your first year, up to £15 a month. Chase was rated the Best Everyday Current Account Provider at the 2025 Your Money Personal Finance Awards.
- Santander Edge Explorer
This new account offers 1% cashback up to £10 per month on eligible debit card spending plus up to £10 per month on eligible household bills paid by direct debit.
The account comes with a monthly fee of £17 but includes a package of perks.
- TSB Spend & Save
Offers £5 cashback per month for the first six months if you make 20 or more debit card payments.
- Zopa Biscuit
Accountholders can earn 2% cashback on up to £1,500 of Direct Debits per year (equating to a maximum of £30), with the rate guaranteed for 12 months.
Shopping discounts
Some banks have a ‘rewards marketplace’ or ‘partner discounts’ feature in their app, offering cashback or voucher codes with selected retailers during certain periods. For example:
- Santander’s “Boosts” program gives cashback, vouchers, and entry to prize draws to account holders.
- Monzo’s Partner Cashback lets you earn rewards when you spend with selected retailers. It works by activating offers in the Monzo app, then shopping (online or in person) with your Monzo card at those partner merchants. You’ll get between 2% and 10% cashback for most offers.
- MyRewards is NatWest’s rewards programme tied to certain current accounts and credit cards. It lets eligible customers earn ‘Rewards’ by having direct debits, logging into the NatWest mobile banking app at least once a month, and spending with their debit or credit card at partner retailers. Natwest was voted Best Reward Current Account Provider at the 2025 Your Money Personal Finance Awards.
Current account switching incentives
Switching your current account ahead of the Christmas season can net you a one-off cash reward. Several banks pay up to £200 or more for new customers who switch via the Current Account Switch Service (CASS). The switch service ensures your existing direct debits, standing orders, and incoming payments move over, and your old account is closed automatically.
Switching incentives currently on the market include £200 from Lloyds and £175 from Nationwide, First Direct and Natwest.
Natwest was voted the Best Switching Current Account Provider in the 2025 Your Money Personal Finance Awards.
Banks offering switching incentives usually require you to pay in a minimum amount within a set period and to use the account actively, such as making card transactions or setting up direct debits. Some also charge a monthly fee or require you to keep a certain balance. You normally only qualify if you’re a new customer who hasn’t claimed a bonus from that bank before, and the switch must be completed through the Current Account Switch Service (CASS).
Hagger says: “The market is always changing with new providers such as Zopa and Kroo coming to the fore, so it’s a sensible strategy to shop around every couple of years to ensure your bank account delivers the best deal for the way you run your day-to-day finances.”
