Everything you need to know about current accounts

To put it simply, a current account is a bank account you use to store your money and use it to pay for things. That’s it! Just joking, there’s a bit more to it than that.

A current account is usually the first step you’ll take into a relationship with a new bank, as they can be a launchpad to access other products and services. But they’re not all made equal, so it’s worth getting familiar with the key things to look out for before you open one.

What’s a current account?

A current account is an instantly accessible account that holds your money. It’s used for things like day-to-day transactions, paying bills, and to transfer money. It’s different to a savings account, which also holds your money but isn’t meant for the same everyday activities. You can learn more about the differences between current accounts and savings accounts in our guide.

Current accounts come in different shapes and sizes. These are the main ones you’ll see:

• Kids’ accounts: designed for young people to learn about money management, often with parental controls to keep an eye on where the pocket money’s going.

• Teen accounts: offer more independence than kids’ accounts, with close to full current account features.

• Adult accounts: standard accounts for everyday banking needs. This might be called a ‘personal account’ too.

• Joint accounts: shared between two people, like roommates or partners. Useful for managing household expenses.

• Business accounts: tailored for managing business finances. 

• Packaged accounts: include benefits like insurance or breakdown cover for a monthly fee. These aren’t strictly a different kind of account, but are a type of paid-for account, with extras on top.

What are the main features of current accounts?

Current accounts can be quite varied, but they’ll mostly come with these features:

• Instant access: you can access your money as you need it, either through a debit card, online banking, or a branch.

• Overdrafts: many accounts offer an arranged overdraft, allowing you to borrow money up to an agreed limit.

• Direct debits and standing orders: these allow you to set up regular payments for bills, ensuring you don't miss a payment.

• Mobile banking: most banks offer a mobile app to manage your account, check balances, and make transfers.

How does a Monzo current account work?

Monzo offers different types of current accounts depending on what you’re after:

• Monzo for Under 16s: a free account for under 16s to learn about money.

• Monzo 16-17s account: gives young adults more financial independence.

• Monzo personal account: our standard account for everyday banking.

• Monzo joint account: perfect for managing shared expenses with a partner.

• Monzo Business: designed to help you manage your business banking.

• Monzo plans: our various packaged account options.

A Monzo personal account comes with features like Salary Sorter, which lets you divide your pay between spending, savings, and bills. You can also get paid early (if you’re paid via BACs, Ts&Cs apply), access 24/7 customer support, and spend abroad with no extra fees. 

You’ll need a Monzo personal account first before you can create the other types of account, except for Monzo Business – which you can sign up for directly. And to sign up for a Monzo joint account, you’ll both need a personal account first.

Getting the most out of your current account

Whatever your banking needs, there’s probably a type of current account that’s right for you. And if your situation changes, it’s worth having another look to see what’s out there, in case you can benefit from something different.

You can also switch between current accounts using the Current Account Switch Service. This is a free service which takes the hassle out of moving over all your payments, including Direct Debits. Plus you’re covered if something goes wrong and you end up being incorrectly charged by either your old or new bank.

To sign up for a Monzo current account, you need to be over 16 and a UK resident. Ts&Cs apply.

Questions? Answers.

Can you have multiple current accounts?

Yes. There’s usually no limit to the number of providers you can have a current account with.

Does Monzo offer a current account?

Yes, Monzo offers a fully-regulated UK current account.

Does opening a current account affect credit?

Just having a current account won't have a major impact on your credit score. But opening accounts frequently might cause a temporary dip. And using any borrowing products like loans or overdrafts definitely will.

Is a debit card a current account?

No, but your current account will come with a debit card that allows you to spend the money in it.