What is a current account?

What you get will vary between different types of current accounts and lenders.

With NatWest, our current accounts come with:

• A contactless debit card.
• An account number and sort code.
• Access to Online Banking and mobile banking.
• Access to both branch and telephone banking.

A sort code is a number that can be used to identify a bank or bank branch. In the UK, they generally follow the format ‘XX-XX-XX’, where the ‘X’ values are always numeric (e.g. 01-23-45). They’re used alongside account numbers to identify individual bank accounts uniquely.

You can have a current account shared between two people (joint). This can be opened alongside current accounts just for personal use (sole). Learn more about joint bank accounts with our NatWest guide.

We don’t often talk about ‘checking accounts’ in the UK. It tends to be more commonly used in the USA and other countries. However, they are essentially the same as a current account.

Checking accounts may have country-specific features, but the principles are the same as a current account.

You don’t legally need a current account in the UK. But it could help you manage your wages, everyday spending, bills and regular payments from one central place.

Here’s why you might be likely to need a current account:

• Income: These accounts are a handy place to receive wages from an employer each month.
• Payments: Your debit card allows you to make in-person and online payments from your account. You can also make regular bill payments with a standing order or Direct Debit.
• Money management: With a mobile app or online banking, you can quickly track and budget your finances.
• Security: In practical terms, a current account is somewhere to safely store your money.

Yes, it’s possible to have multiple current accounts open at the same time. For example, using different accounts for different purposes. However, there might be limits on the number you can open with one provider.

Benefits of having more than one account

• Separating finances: For example, you could have one account for family budgeting and another for personal spending.
• Spreading your money: Multiple accounts can stop you from putting all your eggs in one basket.
• Offers and incentives: You could benefit from perks and introductory offers when opening accounts with different providers. 

Drawbacks of multiple accounts

• Easy to lose track: It may become harder to monitor your monthly spending.
• Credit checks: Opening too many accounts could hit your credit score, as different providers complete their checks.

Yes, you may be able to open a current account with a bad credit score. However, you might have fewer options available.

Basic bank accounts can be an option for those with low credit scores. For example, the Foundation account from NatWest.

As the name suggests, these offer the basic functions of a current account. However, they lack additional features like overdrafts or rewards.

A current account supports day-to-day spending and budgeting, while a savings account is more about building a lump sum towards future goals.

Here are some of the key differences:

• Goal and purpose: Current accounts allow you to receive wages, pay bills, and buy things with a debit card. Savings accounts are a place to store cash for the longer term and earn interest over time.
• Access: With current accounts, you can instantly access your money via debit card payments and cash machine withdrawals. Some savings accounts, like fixed rate products, may limit access to your cash.
• Interest payments: Savings accounts allow you to earn interest on your money. Current accounts tend to pay lower interest or none at all. 

Learn more about the differences

It all depends on the product and provider you go with, and whether you’re a new or existing customer.

For example, if you’re new to NatWest and applying online, it could take up to 10 days. However, the process can take just one working day for existing customers.

Find out about our processes