Best Current Account UK (Free with Overdraft Facility)
Some banks field several accounts, but our focus shifted to free current accounts with an overdraft facility. We skipped any Basic Bank Account since these don’t commonly allow you to borrow. When there was no suitable selection, we went with any package with a monthly fee, so long as you could waiver this when paying a certain level of cash in. On this page we will present our findings listed alphabetically. Rankings will be composed in follow up posts when we will score each based on the charges for planned (Here) and Unplanned Overdrafts. We will also look at the best switching bonuses and those that pay interest on your balances.
Note: The percentages = AER.
Once comparisons have been made we can pick out the UK’s best current account.
1) Bank of Scotland Classic Account = (First £25 at 0%)
Planned: £6 usage fee and 19.94%
Unplanned: £10 buffer | £6 usage | Daily: £5 (>£24.99) and £10 (£25+) | 19.94%
Transactions: £10 (unpaid)
Caps: No more than 8 daily fees
(Notes: Same features as Lloyds below).
2) Barclays Bank Account = (Buffer for first £15)
Planned: Daily: £0.75 (>£1000), £1.50 (>£2000), £3 (£2000+)
Unplanned: £15 buffer | £5 daily (Emergency Borrowing)
Transactions: £8 (unpaid)
Cap: Emergency Borrowing is capped at £35
Notes: This facility was only available for amounts of £700 and above on their overdraft calculator. Without this facility, the items will just be returned.
3) CitiBank Citi Plus Current Account = (Free or £8 monthly*) (First £500 at 0%)
Planned: 16.9%
Unplanned: £10 buffer | 29.8%
Transactions: £25 (paid and unpaid)
Cap: No more than 4 charges
(Notes: Pay in £1800 per month to avoid the £8 fee*. There is a setup and annual renewal fee of 0.5% of the limit for amounts above £500).
4) Clydesdale Bank Current Account Direct
Planned: 9.9%
Unplanned: £25 buffer (see notes) | £25 usage fee and £25 daily | 29.99%
Transactions: £15 (unpaid)
Cap: not disclosed
(Notes: The buffer is assumed to protect you from the £25 usage and the following £25 fees that are charged each day you make another payment in the red. However, they do not clarify this on any of their pages. You need to pay £1000 in each month here. You receive 2% on your balances up to £3000).
5) Coventry Building Society Coventry First = (First £250 at 0%)
Planned: £5 usage fee
Unplanned: £25
Transactions: £8 (unpaid)
Cap: Transaction capping unknown
(Notes: Interest is paid on your balance. This covers 1.1% in the first year and 0.25% in the second. This assumes that you pay £1000 in each month. Otherwise you earn 0.95% and then 0.1%).
6) First Direct 1st Account = (Free or £10 monthly*) (First £250 at 0%)
Planned: 15.9%
Unplanned: £10 buffer | 15.9%
Transactions: £25 (paid)
Cap: No more than £150
(Notes: Pay in £1000 per month to avoid the £10 fee*. The first informal request (£25) in 6 months is free. There is a setup and annual renewal fee of 0.5% of the limit for amounts above £500. Bonus £100 when you switch).
7) Halifax Reward Current Account = (Buffer for first £50)
Planned: Daily: £1 (>£1999.99), £2 (>£2999.99), £3 (+£3000)
Unplanned: £5 daily
Transactions: NA
Cap: No confirmed cap (estimated at £100)
(Notes: The Reward package earns you £5 each month so long as you pay in £750, pay out two direct debits and stay in credit. Bonus £100 handed when you switch).
8) HSBC Bank Account
Planned: 19.9%
Unplanned: £10 buffer | 19.9%
Transactions: £25 (paid)
Cap: No more than £150
(Notes: The first informal request (£25) in 6 months is free. The HSBC Premier is an improved offering that includes the first £500 at 0% on overdrafts. However, a £100,000 income is required here alongside holding another product such as life insurance or a mortgage).
9) Lloyds Bank Classic Account = (First £25 at 0%)
Planned: £6 usage fee and 19.94%
Unplanned: £10 buffer | £6 usage | Daily: £5 (>£24.99) and £10 (£25+) | 19.94%
Transactions: £10 (unpaid)
Caps: No more than 8 daily fees
(Notes: Same features as Bank of Scotland).
10) M&S Current Account = (First £100 at 0%)
Planned: 15.9%
Unplanned: £50 buffer | 15.9%
Transactions: NA
(Notes: You are provided with an automatic £500 overdraft when you join).
11) Nationwide FlexDirect = (First 12 months at 0%)
Planned: £0.50 daily
Unplanned: £10 buffer | £5 daily
Transactions: £5 (unpaid)
Caps: No more than £60 (fees) and £35 (unpaid)
(Notes: The £0.50 charge is still paid within the buffer. FlexDirect offers 5% on your balances up to £2500 in the first 12 months that later drops to 1%).
12) NatWest Select Account = (Buffer for first £10)
Planned: £6 usage fee and 19.89%
Unplanned: £6 daily
Transactions: £6 (unpaid)
Cap: No more than £90 (fees) and £60 (unpaid)
(Notes: This product mirrors the featured RBS account below. The RBS Group of course owns both).
13) Post Office Standard Account
Planned: 14.9%
Unplanned: 14.9%
Transactions: £15 (unpaid)
Cap: Transaction capping unknown
Notes: NA.
14) RBS Select Account = (Buffer for first £10)
Planned: £6 usage fee and 19.89%
Unplanned: £6 daily
Transactions: £6 (unpaid)
Cap: No more than £90 (fees) and £60 (unpaid)
(Notes: The unauthorised fees are triggered when you surpass £6. This isn’t really a buffer though since you can still be hit with an unpaid fee).
15) Santander Everyday Current Account
Planned: £1 daily
Unplanned: £6 daily
Transactions: £10 (paid and unpaid)
Cap: No more than £150
(Notes: Both planned/unplanned essentially have a £12 buffer, but you are still charged for unpaid transactions throughout. You may wish to consider their 123 package that pays cashback and interest at 3% on balances between £3000 and £20,000. We didn’t feature this as there is a £2 monthly price tag. A switch is available that hands you with a 0% overdraft for the first 4 months).
16) Smile Current Account
Planned: 18.9%
Unplanned: £20 usage fee and subsequent £20 fees | 18.9%
Transactions: £15 (unpaid)
Cap: No more than £150 per quarter
(Notes: Most of the features here match the Co-operative product below. This offering differs by not having any minimum income requirements and you are also handed with a larger £500 overdraft. This means that the £20 charges are not imposed until you surpass the £500 limit.
17) Tesco Bank Current Account = (Free or £5 monthly*)
Planned: 18.9%
Unplanned: 18.9%
Transactions: £5 (paid and unpaid)
Cap: No more than £50
(Notes: Pay in £750 per month to avoid the £5 fee*. You earn 3% on your balances up to £3000).
18) The Co-operative Bank Current Account Plus
Planned: 18.9%
Unplanned: £20 usage fee and subsequent £20 fees | 18.9%
Transactions: £15 (unpaid)
Cap: No more than £150 per quarter
(Notes: If you surpass the £200 starting limit, overdrafts will cost £20 every 12 months. Any requests for changes incurs a further £20 charge. This is the same amount that they take for the usage and subsequent increases when you are in the unauthorised zone. There is a waiver if your borrowing lasts 6 consecutive days or less and you haven’t requested an informal overdraft within 366 days. You must pay in £800 per month. You receive £100 and £25 is sent to charity when switching).
19) TSB Classic Plus = (First £25 at 0%)
Planned: £6 usage fee and 19.94%
Unplanned: £10 buffer | £6 usage | Daily: £5 (>£24.99) and £10 (£25+) | 19.94%
Transactions: £10 (unpaid)
Caps: No more than 8 daily fees
(Notes: The TSB Classic Plus also comes with 5% on balances up to £2000 so long as you pay £500 in each month. This is all that differentiates this product to the featured Bank of Scotland and Lloyds listings. Lloyds still part owns TSB).
20) Yorkshire Bank Current Account Direct
Planned: 9.9%
Unplanned: £25 buffer (see notes) | £25 usage fee and £25 daily | 29.99%
Transactions: £15 (unpaid)
Cap: Not disclosed
(Notes: The product details are matched to the Clydesdale Bank above).
Data Correct at August 2014.
