How to find a low-cost bank account

Most banks offer a basic transaction account with a low monthly fee or none at all. Which one is cheapest for you depends on how you use it. We don’t earn anything from any bank, and we don’t recommend one over another.

Start with each bank’s pricing guide

Banks publish the fees for each of their accounts in a pricing guide on their websites. Banks change their fees from time to time, so check the date on the guide and use the current one for the account you’re looking at.

The fees that matter more than the monthly fee

An account with no monthly fee can still cost you more if you pay for every transaction. In the pricing guide, look for what you would pay for:

• cash withdrawals: at the bank’s own ATMs, at other banks’ ATMs and at shop tills,
• cash deposits,
• debit orders and payments to people at other banks,
• real-time payments, including PayShap, the banks’ real-time payment service for small amounts,
• SMS or app notifications,
• a replacement card, and
• fees for an account you stop using.

Add up what an account would cost you

1. Count your transactions in a normal month: cash withdrawals, cash deposits, payments, debit orders and notifications. Your last bank statement shows them.
2. Work out the cost at each bank. Take each count, multiply it by the fee in that bank’s pricing guide, and add the monthly fee.
3. Compare the totals. The account with the lowest total is the cheapest for the way you bank.

If the way you bank changes, add it up again.

Ways to keep your bank fees low

• Choose an account whose free or cheap transactions match how you bank.
• Use the banking app for payments and balance checks if you have one.
• Close accounts you no longer use, so you don’t keep paying for them.

If you get the SRD grant, see how to change your SRD banking details after you open a new account.

Stay safe

Never share your PIN, banking password or a one-time PIN with anyone who contacts you, even if they say they are from your bank. Read our guide to avoiding scams.

If you need to borrow, check a loan’s interest and fees against the limits in the law with our loan cost check before you sign.