How hard does your bank account work for you? Hard enough to give you free travel insurance, cashback on your household bills, or simply standout customer service?
Although it is only natural to have reservations over switching from a well-worn account that has seen you through your financial life - possibly since you were a teenager - this is no reason to stay put if you could be getting a better deal elsewhere.
Here we look at some of the best options available to help you to make your money work harder, cut down on fees, or get free stuff. This is not an exhaustive list of all current accounts around, but as with our Five of the best Cash Isas round-up, we have chosen accounts that we feel stand out for some reason.
Free insurance: Nationwide is offering European travel coverage with its current account Account for...free overall perks: Nationwide FlexAccountWhile many accounts have individual perks that make them stand out over others, Nationwide's FlexAccount' s overall offer is one of the most comprehensive when it comes to little extras.
Travel insurance and cheaper overseas spending
Travellers can take advantage of the free multi-trip European travel insurance. Nationwide's travel cover has been rated five stars by Defaqto and includes perks such as £1,500 personal possessions cover.
Skiers and snowboarders should bear in mind that winter sports cover is an added extra, however.
Nationwide sadly axed the accounts fee-free overseas spending some years ago, however, its charges for taking cash out and spending are a good notch lower than most main rivals - so travellers benefit here too.
Access to better rates on savings, mortgages and loans
The FlexAccount deal also includes access under its Flexclusives to better savings and mortgage rates and discounted home insurance and personal loans deals.
Watch out for
You have to be able to be able to pay in at least £750 into your account monthly or complete an account transfer within the first four months from a non-Nationwide account. You need to keep paying in this £750 every month to ensure your travel insurance cover does not lapse.
However, if you're one of those people who finds themselves hovering between black and red towards the end of the month, it could be worth looking elsewhere. Interest is charged at a fairly high 18.9 per cent for both arranged and unarranged overdrafts. £20 is also added to the monthly bill for unarranged overdrafts.
To soften the blow, cardholders are given three months' interest-free agreed overdrafts as an introductory sweetener after switching existing direct debits and standing orders to the new account.
This is Money verdict
Overall, this account is a good choice, especially if you travel regularly to Europe and can make the most of the free travel insurance offered, want lower charges for spending abroad than most banks and want access to the Flexclusive range of rates on mortgages, savings and loans.
Interested? Check the full details on the Nationwide Flexaccount
Account for free money... Halifax Reward Current AccountHalifax is offering a deal which means you can earn up to £160 in your first year.
£5 reward and £100 to switchThe bank is currently offering new customers £100 when they switch, plus a monthly £5 reward.
The deal applies to its Reward Current Account, Current Account and Ultimate Reward Current Account (although a £15 month fee applies).
Halifax has also thrown a six month fee-free overdraft into the mix.
Every little helps: Halifax offers £100 to switchAccountholders can also buy commission-free foreign currency, which will be delivered to your home or local branch free of charge if you order it on the phone - otherwise it will cost 1.5 per cent.
The small print
The offer ends July 7, so if you are thinking of opening a Halifax account it is worth getting a move on.
To qualify for the £5 rewards offer you will need to switch your main bank account to Halifax using the bank's special service and transfer a minimum of two direct debits. You must also pay st least £750 into the account every month and remain in credit.
If you do not switch your direct debits, Halifax will take back the £100.
If you’re successful in applying for a planned overdraft you will not have to pay any fees for six months - so long as you stay within your agreed overdraft limit.
After the six months, planned overdrafts cost £1 daily up to and including £1,999.99, £2 up to £2,999.99 and £3 for overdrafts of £3,000 or above. Unplanned overdrafts cost £5 daily, regardless of amount. Remember, if you’re slip into your overdraft you will lose your £5 payment the following month.
If you are overdrawn by £50 or less you won't pay any planned or unplanned overdraft fees - and if you are able to pay in enough money to return your bank account back in credit by the end of the day you won't be charged at all.
Finally, the £5 reward is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20 per cent). If you’re a higher-rate taxpayer you may have to pay extra income tax on the reward payment.
This is Money verdict
This is the best free money deal available at the moment if you are thinking of sticking with your new bank for the long-term (First Direct is also offering £100 to switch and £100 if you are not happy and decide to leave) - so long as you stay in credit.
If you often find yourself slipping into the red, it is probably not the best account for you as you won't be reaping the full benefits.
Interested? Check out the full details on the Halifax Reward Current Account
Santander: offers the best current account for cashbackAccount for…cashback and savings interest: Santander 123
The Santander 123 current account is an intriguing proposition, it pays both cashback on spending and interest on balances.
Interest on savings
With savings rates stuck at all-time lows, this account could also be a good alternative to savings accounts - the bigger your balance, the more interest is paid on the account.
To start with, for credit balances of £1,000 or more, the 123 account will pay an AER of 1 per cent on the entire balance.
Once your balance reaches £2,000 or more, you will earn interest of 2 per cent, and if it reaches £3,000, the maximum interest of 3 per cent will kick in. Interest is clocked up on a daily basis and will depend on what you have in your account that day.
Watch out if your balance falls below £1,000 on any day of the month - even by £1 - you will earn no interest at all on the entire balance for that day.
Cashback
As well as the potentially high interest benefits, the 123 account could be a smart choice because it really makes your money work for you, thanks to up to 3 per cent monthly cashback on key services such as mortgage payments, council tax bills, electricity, gas, mobile and home phone, broadband and TV packages.
Household bills exclude your TV licence, maintanance/insurance contracts, commercial use or commercial mortgages.
Both interest and cashback you earn is paid directly back into your 123 account on a monthly basis.
Watch out for
There is a monthly fee of £2, and to be eligible for cashback services you must set up a minimum of two direct debits and pay in at least £500 every month. But to get the most benefit from this account, it's best to retain a credit balance of at least £1,000 - this might be easier if you are a couple sharing the account with two salaries.
This account is really not for you if you often find yourself in the red. Arranged overdrafts are charged at £1 a day, capped at 20 days a month. Unarranged overdrafts shoot up to £5 a day with no cap on unauthorised borrowing.
Santander says that you will not be charged more than £95 in fees for any one month. At the moment they are also offering a free arranged overdraft for four months if you switch to the 123 account using their switcher service. The size of the overdraft will depend on your circumstances.
This is Money verdictSantander's 123 really does offer something different and rewards both saving and spending. If there is any chance of you slipping into your overdraft, there is little point applying for the account as the combined charges and monthly fee are likely to cancel cash benefits.
Prospective account holders can be new customers or already bank with Santander. However, even if you are won over by the range of benefits included in this account, recent negative reports surrounding Santander's customer service could put you off taking the leap.
Interested? Check the full details on the Santander 123 account
Account for in-credit interest: Nationwide's FlexDirect accountNationwide is offering the highest available interest rate on a current account.
Best interest rateNationwide's FlexDirect account pays out 5 per cent in-credit interest on balances up to £2,500 for the first year - not bad considering most easy-access savings rates have slid in recent years to an average 0.77 per cent, according to Moneyfacts.
Every little helps: Nationwide offers the best interest-paying current accountAccount holders are also eligible for a 0 per cent overdraft for the first 12 months, and reduced fees of 50p per day for arranged overdrafts after that.
You must pay in a minimum monthly income of £1,000. On the last day of every month Nationwide will calculate the interest you've earned each day and then pay you this interest on the first day of the next month.
Watch out
If your income drops and you can't pay in £1,000, you won't receive any interest that month.
The 5 per cent interest deal ends after a year, when it drops to just 1 per cent. So it may be worth looking elsewhere after the 12 months for a better return on your money.
You get an interest-free arranged overdraft for that 12 months, but after that a flat rate charge of 50p per day applies, this will be costly for those who regularly go overdrawn compared to a typical interest-charging overdraft.
Unarranged overdrafts cost 50p per day for balances under £10 and £5 per day after that, capped at £60 per month.
If you like to carry out your banking face-to-face, this account might not be good for you because you can only access internet or telephone services as a FlexDirect customer.
This is Money verdictAccounts that are good for both in-credit and overdrawn customers are few and far between. This account is a market-leading option for the first 12 months, but you may want to switch to another account once the introductory offers have gone.
Interested? Check out the full details on the Nationwide FlexDirect account
Account for… free overseas transactions: Norwich and Peterborough Building Society's Gold ClassicNorwich and Peterborough Building Society's Gold Classic account offers numerous free perks and services, helping you to save money when managing your finances.
No overseas chargesThe standout feature on this card is its fee-free foreign transactions. If you travel a lot, it could be a great money saver – although you will have to pay the exchange rate, Norwich and Peterborough Building Society will not charge you for either using your card or withdrawing money from an ATM abroad.
No charges: Metro Bank customers enjoy fee free foreign transactionsBut it is not just the free overseas spending that makes this account so appealing. Other eye-catching deals include a £250 interest-free overdraft for six months when you switch, and free Sentinel Gold cover for your personal belongings.
The final cherry on the cake is an offer which comes free with the account that allows you to trade shares at a discounted flat rate of £8.95 online or £14.95 over the phone.
Current account holders also have exclusive access to a range of savings accounts with preferential rates.
So long as you pay in £500, or maintain a balance of £5000, there is no monthly fee - otherwise you will be charged £5. Interest is not paid on your balance.
Watch out for
If you often find yourself overdrawn, you will need to take care. Agreed and unagreed overdrafts both incur interest at a rate of 17.9 per cent, as well as a monthly £5 fee. Unapproved overdrafts cost £19 a month, and paid and unpaid charges will clock up an additional £15 each. However, Norwich and Peterborough do allow a £10 fee-free buffer, just in case you go slightly over by mistake.
If you use the dedicated N&P switching service to move your direct debits and standing orders across to your new Gold Classic account, then you will benefit from no charges and no interest on your overdraft for the first six months. Charges and interest will apply if the £250 limit is exceeded.
This Is Money verdictThis is a great account for anyone that regularly uses their card abroad. It will make life easier when you are overseas - you don't need to think about going into a bank or taking all your cash out at once to avoid lots of charges.
Possessions insurance is also a nice touch – with handy free services if you find yourself in a fix on holiday or at home.
However, if you do often find yourself overdrawn, fees and interest after the first six months will quickly cancel out any savings you make on foreign transaction fees and possessions insurance.
Interested? Check the full details on Norwich and Peterborough Building Society's Gold Classic account
