Choosing a current account
Lesson 1 of 14 in our free Banking & Payments guide: a 5-minute money game with the key points below.
Reading is cool. Playing is cooler.
This lesson is a 5-minute game. Free, no sign-up needed.
The story so far
Mo: I picked my bank account because the card was a nice colour. Was that… wrong?
Dex: Bro, I picked mine for the metal card. Weighs as much as a phone. Status.
Nana: A heavy card doesn't pay your rent, Dex. Look at fees, overdraft terms and whether the app actually helps you.
Chip: A current account is where money lands and bills leave. Judge it on features, not freebies.
Questions you'll answer
How much of your money is protected by the Financial Services Compensation Scheme (FSCS) if a UK-authorised bank fails?
Up to £120,000 per person, per authorised firm. Yes. Since December 2025 the limit is £120,000. Check the bank is UK-authorised — and note some brands share one licence.
Quick facts
- Clear overdraft terms and fees → Really matters. This is where accounts cost real money. Check it first.
- Spending alerts and a decent app → Really matters. Seeing your money in real time is a superpower.
- Savings pots inside the app → Nice to have. Handy for budgeting, but not a dealbreaker.
- Card comes in rose gold → Ignore. It's giving… nothing. Aesthetic isn't a feature.
- Fee-free spending abroad → Nice to have. Great if you travel or study abroad; irrelevant if you don't.
- A one-off freebie that's worth less than a month of fees → Ignore. Freebies are the bait. Read the terms behind them.
- Fact: “You can have more than one current account.” — Totally allowed. Some people use one for bills and one for spending.
- Myth: “All current accounts charge a monthly fee.” — Many standard accounts are free to run. Packaged accounts with a fee bundle extras — only worth it if you'd use them.
- Fact: “Some app-only banks are covered by the FSCS too.” — If they're UK-authorised banks, yes. Check — e-money accounts work differently and aren't FSCS protected in the same way.