Compare personal bank accounts in the UK

Personal bank accounts at a glance

A personal bank account (also called a current account) is the account your salary is paid into and your bills are paid from. Here are the key facts for UK accounts in 2026:

• Most have no monthly fee. Costs usually come from spending abroad, cash withdrawals above an allowance and overdrafts.

• Protection: eligible deposits with a UK bank are protected by the FSCS up to £120,000 per person, per banking licence.

• Overdrafts: since April 2020, banks must charge a single annual interest rate with no fixed fees. Many charge around 39.9% EAR.

• Fraud: if you're tricked into sending money to a scammer, your bank must usually refund you up to £85,000 per claim.

• Switching: the Current Account Switch Service moves your account in 7 working days, for free. It completed 288,999 switches between April and June 2026.

• Everyone has a right to a basic bank account with the UK's nine largest current account providers, even with a poor credit history.

What is a personal bank account?

A personal bank account is an account held by an individual, not a business, for everyday money: receiving income, paying by debit card, setting up Direct Debits and withdrawing cash. In the UK it is usually called a current account.

It differs from a savings account in two ways. It is built for frequent payments rather than for earning interest, and it can come with an overdraft. Most pay little or no interest on your balance.

Not every account that looks like a bank account is one. Some apps are run by electronic money institutions (e-money firms) rather than banks. They can offer cards, payments and transfers, but your money isn't a bank deposit, which changes how it is protected (see "Is my money safe" below).

Which type of personal bank account is right for you?

The right type of personal bank account depends on how you use your money and what you need from your bank. Most people only need a standard or digital account with no monthly fee.

How much does a "free" bank account really cost?

A personal bank account with no monthly fee can still cost you money. The charges that matter most are fees on spending abroad, cash withdrawals and overdrafts, so the right account depends on how you use it.

Here is what typical charges cost in four common situations:

Fee-free allowances have limits. Some accounts let you withdraw cash or exchange currency for free only up to a monthly amount. Above that, a fee applies, often 1% to 2%. Check the allowance against how much you actually use.

Paid plans and packaged accounts. Add up what you would pay for the included benefits on their own. If that total is lower than the yearly fee, or you already have the cover, the account costs you more than it saves.

How do overdrafts work and what do they cost?

An overdraft lets you spend more than you have in your personal bank account, and you pay interest on the amount you borrow. An arranged overdraft has a limit agreed with your bank in advance; an unarranged overdraft happens when you go below zero without one, or past your limit.

FCA rules introduced on 6 April 2020 changed how overdrafts are priced:

• Banks must charge a single, simple annual interest rate, shown as an EAR (Equivalent Annual Rate).

• Fixed daily or monthly overdraft fees are banned.

• An unarranged overdraft can't cost more than an arranged one.

Many banks now charge around 39.9% EAR, which is higher than most credit cards. Some app-based banks set a personal rate based on your credit history, and student accounts often include an interest-free overdraft.

What an overdraft costs at 39.9% EAR:

Interest compounded daily at an EAR of 39.9%. Banks calculate interest in slightly different ways, so check your own bank's figures.

An overdraft suits short gaps of a few days. For borrowing over several months, a 0% credit card or a personal loan usually costs less. Regular overdraft use also shows on your credit file.

What is the best way to use your bank account abroad?

The cheapest way to spend abroad is to pay with a card that has no non-sterling transaction fee, always choose to pay in the local currency, and keep cash withdrawals to a minimum. Three costs apply when you use a personal bank account outside the UK:

1. Non-sterling transaction fee: a percentage added to every card payment in a foreign currency, often around 3% on high-street accounts. Many app-based accounts charge none.

2. Cash withdrawal fee: a percentage, a fixed fee, or both, charged by your bank on ATM withdrawals abroad. The ATM owner may add its own fee on top.

3. The exchange rate: most cards use the Visa or Mastercard rate. Some apps add a markup when you exceed a monthly allowance or exchange at weekends.

Always pay in the local currency. If a shop or ATM offers to charge you in pounds, say no. This is called dynamic currency conversion, and the rate offered usually includes a markup set by the merchant or ATM operator.

If you're paid in another currency or travel often, a multi-currency account lets you hold and exchange balances in several currencies within one app.

Is my money safe in a personal bank account?

Yes, if it's held by a UK-authorised bank: the FSCS protects eligible deposits up to £120,000 per person, per banking licence, and aims to pay most people back within seven days if the bank fails.

• Per licence, not per brand. Some banks run several brands under one licence, and money across those brands shares a single £120,000 limit.

• Joint accounts: each holder is protected up to £120,000, so up to £240,000 in total.

• Temporary high balances: money from events such as a house sale or an inheritance can be protected up to £1.4 million for six months.

E-money accounts are protected differently. An electronic money institution must keep your money separate from its own ("safeguarding"), but it isn't covered by the FSCS. If the firm fails, getting your money back can take longer and may cost something. You can check whether a provider is a bank or an e-money firm on the FCA Financial Services Register.

Protection against fraud. Since 7 October 2024, if you're tricked into sending money to a scammer by bank transfer (an authorised push payment, or APP, scam), your bank must usually refund you up to £85,000 per claim. The rules cover payments made by Faster Payments and CHAPS:

• Report the scam within 13 months of the last payment.

• Refunds are usually due within five business days.

• Your bank can deduct an excess of up to £100.

• You may not be refunded if you acted with gross negligence or were part of the fraud.

If someone uses your card or account without your permission, that is unauthorised fraud, and your bank must usually refund you.

How to open a personal bank account

Most personal bank accounts can be opened online or in an app in 10 to 15 minutes, with photo ID and a few personal details. Before you apply, check you have:

1. Eligibility: usually 18 or over and a UK resident. Teen accounts are available from 16, and children's accounts from younger ages.

2. Photo ID: a passport or driving licence. App-based banks usually also ask for a selfie or short video.

3. Your address history: many banks check it electronically, so you may not need a paper bill.

4. A credit check: most banks run one when you apply. Applying for an overdraft usually means a full (hard) search, which appears on your credit file.

No proof of address, or new to the UK? Digital banks often verify you through your phone, ID and a selfie rather than utility bills. If you've just moved here, you'll usually need your passport and proof of your right to live in the UK.

Poor or no credit history? You have a legal right to a basic bank account. Under the Payment Accounts Regulations 2015, the UK's nine largest current account providers must offer one to eligible people who don't already have a usable UK bank account. Basic accounts include a debit card, Direct Debits and cash withdrawals, have no overdraft and charge no fees for standard services, including failed payments.

How to switch your bank account

You can move your personal bank account to a new provider in 7 working days, for free, using the Current Account Switch Service (CASS). Your new bank handles the switch, and you choose the date.

• Everything moves: your balance, Direct Debits and standing orders.

• Payments follow you: anything sent to your old account is redirected for at least three years.

• Your old account closes on the switch date.

• The Switch Guarantee: if anything goes wrong, you're refunded any interest or charges caused by the error.

Switching is more common than many people think. CASS completed 608,528 switches between January and June 2026, 39% more than in the same period of 2025, and 12.9 million since it launched in 2013. More than 50 banks and building societies take part; look for the CASS logo on a provider's website.

Keeping your old account open? You can move payments without closing it, but then the Switch Guarantee and automatic redirection don't apply.

Switching bonuses usually require you to switch through CASS, move a set number of Direct Debits and pay in a minimum amount each month. Read the conditions before you apply, as missing one can mean losing the bonus.

How we compare personal bank accounts

We list personal bank accounts from providers we work with commercially. Our panel changes over time and doesn't cover the whole market, so other accounts may suit you better.

For every account we check monthly fees, charges for spending and withdrawing cash abroad, overdraft availability and rates, eligibility, and whether your money is held by a bank covered by the FSCS. We check details against each provider's own terms and price lists every week, and whenever a provider changes its prices. Partner products are shown first by default; you can sort by monthly fee instead. For more: How we rank.

Sources

• FCA – PS19/16: Overdraft policy statement (new overdraft pricing rules)

• PSR – PS24/7: APP scams reimbursement, maximum level of £85,000

• UK Government – Designation of the nine banks required to offer basic bank accounts

• FCA – Financial Services Register

• FSCS – Deposit protection

• PayUK – CASS reports 39% rise in H1 2026 switching

• Current Account Switch Service

• MoneyHelper – Basic bank accounts