How to find the top UK bank accounts

	Rate (AER)	Minimum Balance
A & L	8.50%	£1
Barclays	3.00%	£1
Barclays	3.00%	£1
A & L	1.00%	£1
Citibank	0.10%	£1
* Based on £500 Credit and is a limited guide to the market

The big four banks Barclays, HSBC, Lloyds TSB and NatWest - just don't offer the top UK bank accounts. They provide two-star service yet make five star profits, according to a recent survey by consumer group Which? among 4,600 of its members.

This isn't exactly a revelation but Which? also found that their banking terms wanting. The big four are low payers as well and struggle to make the best buy tables. This isn't surprising either as many of the current accounts from the big four only pay 0.1% on credits.

Let's get the facts straight - poor banking terms, poor on service, rarely in the current account best buy tables but why do 61% of Which? members and a large percentage of the rest of us continue to entrust our hard earned cash with these banks?

It's a real puzzle, when we could doing so much better elsewhere? If you look at the profits the large high street banks make, you can see where your money is going. HSBC turned in a profit of £6.97 billion in the first six months of this year, up 13% on the same period in 2006, while Lloyds TSB made £2 billion, up 12%.

Is your current account the best one for you? "Cheque out" the competition with Moneyextra's comparison services to find out.

Banks like to make big profits to keep their shareholders and the City happy but why not make money for yourself with a top paying current account that provides you with better banking terms and a decent service as well.

Online and phone banking best

Which? found the top UK bank accounts exist mostly in cyberspace. Internet and telephone banking offers better value and better service. On the internet Smile from Co-op Bank, Intelligent Finance from Halifax and Cahoot from Abbey got five stars for service as did telephone bank First Direct from HSBC.

Which? Money Editor Martyn Hocking said, "If you're still with one of the big four high street banks, then now's the time to move."

Want to stay current with what's happening in banking? Learn more about your account's competitors.

There is a lot of choice in the market and you have to base your decision on your needs. Could you really survive on telephone or internet banking terms? Are you a saver or a borrower? You also have to realise that while the interest rate on credits might look great, you might not get the rate advertised. There are terms and conditions attached and often you have to pay in a minimum balance a month or the high interest rate on offer may be paid on a limited sum for a certain period.

Sainsbury's Bank says that around £13.6 billion of our cash is sitting around earning a pittance in low paying current accounts whereas, by moving to better banking terms, it could be earning £801 million plus in extra interest, presuming an interest rate of 6% AER.

15 July 2008 © Moneyextra.com

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