Finding the right bank account Five steps to finding the best bank account
If you want to bank online, there are plenty of good accounts
Step 1: Always in credit or often overdrawn?
The best current account for you depends on how you like to use your account. Whether you're always in credit and would like to get some interest on your money, or tend to dip into the red and don’t want to be hit with big charges, there’s a Best Rate account for you.
Although fewer banks now pay interest when you’re in credit, there are still some that do – so if you maintain a healthy bank balance, it’s worth shopping around.
And if you tend to run an overdraft, look for an account that doesn’t cost a bundle when you are in the red.
Step 2: Is customer service important?
If good customer service is important to you, check out our Which? Recommended Providers (WRPs). These banks have the best service ratings, and although their current accounts may not be Best Rate accounts, they are competitive.
To be a WRP, not only must a bank get the best scores in our customer satisfaction surveys but it must also have a current account that is in the top 10 for credit interest, overdrafts or current account mortgages.
Step 3: Online banking or in the branch
Are you happy to bank entirely online, or do you prefer to see someone face-to-face in the branch? Internet and phone banking mean that the proximity of the nearest branch need no longer be the deciding factor in which bank you choose, although if the human face of banking is important to you, there’s still plenty of choice.
Our Best Rate accounts offer a choice of ways of accessing your account, but you need to decide before you apply.
Most branch-based accounts also offer online and telephone banking, but banks such as Smile and First Direct do not have their own branch network and are aimed primarily at people who want to use the internet or telephone for their day-to-day banking.
Step 4: Don’t pay a fee for services you won’t use
Packaged accounts charge a fee in exchange for a range of additional ‘benefits’ such as annual travel insurance, breakdown cover and preferential rates on other products.
However, Which? research shows that few people who have a packaged account make use of many of these added extras, and few of the extras are worth paying for.
The main benefits that may be worth paying for are annual travel insurance and breakdown cover, although for them to be worthwhile, you have to make use of them. See Should I pay a monthly fee for my bank account? for more on this.
Step 5: Switch to the best bank account
If you're still unsure which account to choose, use our current account tool to help you decide. Once you’ve decided which is the best account for you, all that remains is to open the new account and switch your banking to it.
Pick a date for moving your money from your old account to your new one. Ask your new bank to contact your old bank for a list of your direct debits and standing orders – your old bank has to send over this list within three days of it being requested. You'll need to confirm which payments you want to be moved.
All you have to do now is give your new account details to your employer, pension provider and anyone else who regularly pays money into your account. Your new bank will provide standard forms for this, so there shouldn't be any hiccups.
Once the switching process has started, it can take up to four weeks to move all of your standing orders and direct debits, so it’s wise to keep some money in both accounts until the transfer is complete. Alternatively, some banks offer a special overdraft facility to cover this intervening period.
Once all your regular payments have been switched, your new bank will ask the old bank to cancel obsolete direct debits and standing orders.
Your new bank will then tell you when the switch has been completed.
If anything goes wrong with the switch and you end up out of pocket as a result, you will get your money back from whichever bank was at fault.
- Take a look at our Which? Recommended Provider bank accounts
- See which banks we rated best for customer satisfaction
- Call the Which? Money Helpline for further guidance on the banking best options for you
