Average house prices started the year on an upward trend, raising hopes of a recovery, Nationwide data suggests.

The latest Nationwide House Price Index shows average house prices rose by 1% annually in January 2026, an improvement on the 0.6% recorded a month before.

Average house prices also rose 0.3% on a monthly basis after a decline in December, blamed on the aftermath of the Autumn Budget.

This puts the average UK house price at £270,873, Nationwide said.

Property values could rise further if affordability improves and interest rates are cut further.

Robert Gardner, Nationwide's chief economist, said: “The start of 2026 saw a slight pick-up in annual house price growth.

“Housing market activity also dipped at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.

“Nevertheless, the number of mortgages approved for house purchase remained close to the levels prevailing before the pandemic.

“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained.”

The new year housing market

It’s been a different start to the year compared to 2025.

Homebuyers and sellers entered 2025 with a rush to beat changes to stamp duty thresholds.

The final months of 2025 were dominated by uncertainty about Autumn Budget tax rises. The only major change to property taxes in the end was the announcement of a mansion tax, which will be introduced in April 2028.

With the Budget out of the way, there is less uncertainty this year and more optimism as buyers hope for more interest rate cuts, which should mean cheaper mortgages.

Research suggests affordability constraints have eased over the past year, attributed to earnings growth outpacing house price growth and also a steady decline in mortgage rates. This has helped underpin buyer demand, the building society said.

A prospective first-time buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 32% of their take-home pay – slightly above the long-run average of 30% and well below the recent high of 38% recorded in 2023, Nationwide found.

All parts of the UK, with the exception of Northern Ireland, saw an improvement in affordability over the past year.

For the second year running, London saw the largest improvement in affordability but remains the least affordable region by a significant margin.

Affordability pressures remain pronounced in the South of England, whilst in the North,

Yorkshire & The Humber and Scotland, mortgage payments as a share of take-home pay are slightly below their long-run average, Nationwide said.

Will house prices rise in 2026?

House price growth slowed towards the end of 2025 as the market adapted to higher stamp duty costs and stalled amid Autumn Budget uncertainty.

But there are hopes for more growth in 2026, with more interest rate cuts expected in 2026.

Gardner added: “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained.”

Tom Bill, head of UK residential research at Knight Frank, said: “House prices edged higher as certainty following the Budget triggered a flurry of deals before Christmas.

“However, mortgage approvals in the same month were 9% below the five-year average, showing that demand is still fragile. The chances of two rate cuts this year have faded in recent weeks for reasons that include stronger-than-expected UK economic data, which underlines how prices and transaction levels will remain under pressure.

“The absence of political drama over the next few months would help confidence grow, but that might be wishful thinking.”

Nationwide has been fined £44 million over failings in its anti-money laundering systems between October 2016 and 2021 that allowed millions of pounds of fraudulent payments to be deposited into current accounts.

One of the most serious cases involved a customer who was able to receive £27.3 million in fraudulent Covid furlough payments over 13 months. The criminal deposited £26 million of this into their personal Nationwide current account over just eight days.

The fine is the largest penalty ever issued to Nationwide by the Financial Conduct Authority (FCA).

An investigation by the financial regulator found Nationwide had “ineffective systems” for performing due diligence and risk assessments on its customers and for correctly monitoring their transactions.

The FCA also found the building society was aware that some of its customers were using their personal current accounts for business activity – a breach of its own terms.

At the time, Nationwide did not offer business accounts and so did not have the correct processes in place to manage the financial crime risks that come with business activity.

It was therefore unable to effectively identify and manage money laundering risks among its customers with personal current accounts, while also not having an accurate picture of which of its customers presented a higher risk of financial crime.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Nationwide failed to get a proper grip of the financial crime risks lurking within its customer base. It took too long to address its flawed systems and weak controls, meaning red flags were missed with serious consequences.

“Building societies and banks have a key role in the fight against financial crime. Firms must remain vigilant in this fight.”

Nationwide fine reduced thanks to full cooperation

The watchdog says Nationwide cooperated fully with their investigation and that the building society has invested significantly in its financial crime processes since July 2021.

It added that the building society was initially set to be fined just under £63 million, but qualified for a 30% discount after it agreed to resolve the matter.

Since 2021, the FCA has imposed 13 fines, totalling just under £301 million, on banks for anti-money laundering systems and controls failings.

A spokesperson for Nationwide said: “Nationwide identified these issues, which relate to controls in place before July 2021, through its own reviews, and voluntarily brought them to the attention of the FCA. The Society cooperated fully with the FCA investigation, and we are sorry that our controls during the period fell below the high standards we expect.

“Since 2021, Nationwide has invested significantly in all aspects of its economic crime control framework in order to ensure our systems are robust.

“We do not believe that these controls issues caused financial loss to any of our customers and remain committed to preventing economic crime and protecting our customers and the wider UK economy from fraud.”

Annual house price growth dipped in November but the market remained resilient despite threats of increased taxation in the Autumn Budget, new figures show.

House prices are up 1.8% in the year to November, according to Nationwide’s House Price Index, down 0.6 percentage points from October’s annual price growth figure of 2.4%.

The slower rate of annual growth meant the price of a typical house increased by 0.3% between October and November, bringing the average price of a UK house to £272,998 – a month on month rise of £772.

Robert Gardner, chief economist at Nationwide, said: “The housing market has remained fairly stable in recent months, with house prices rising at a modest pace and the number of mortgages approved for house purchase maintained at similar levels to those prevailing before the pandemic.

“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs.”

Did the Budget affect house prices?

In November, many homeowners and prospective buyers will have been anticipating a shake-up to how property is taxed in the Autumn Budget, which was delivered on 26 November.

In the weeks leading up to it, reports suggested the chancellor was going to hike property taxes, but most owners were spared. Just those with a home valued at £2 million or more face a new ‘mansion tax’.

These rumours had a strong effect on consumer sentiment, which took a hit before the Budget, but this does not seem to have translated into a palpable dip in the market.

Gardner at Nationwide believes the new ‘mansion tax’ is “unlikely to have a significant impact on the housing market” in the long term as the new levy will apply to less than 1% of properties in England and around 3% in London.

Gardner expects the increase to the rate of income tax on property income to have a more profound impact, as it may dampen the supply of new rental properties.

Alice Haine, personal finance analyst at Bestinvest, supports this view, calling the two percentage point tax hike a “sting in the tail” for landlords.

She added: “This could be the tipping point for some landlords, prompting sales after years of rising taxes and tighter regulation, while others may resort to passing increased costs on to tenants – pushing rents even higher.”

Where will house prices go next?

Following a Budget where the worst-case scenarios were avoided, Gardner at Nationwide believes the outlook for some buyers is set to improve.

He said: “Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.

“This should support buyer demand, especially since household balance sheets are strong. Indeed, in aggregate, the ratio of household debt to disposable income is at its lowest for two decades.”

Increased affordability in the market is also expected by Haine at Bestinvest, who said market confidence could return after this Autumn’s pre-Budget dip, as buyer demand and the number of listings could increase.

She said: “While property tax changes may dampen demand at the upper end of the market, and higher taxation could accelerate buy-to-let exits, there could be a resurgence in wider market activity. Buyers who paused moving plans in the run-up to the Budget, in a bid to assess the impact of any new measures, may now make a return.”

Every single branch of Nationwide and Virgin Money will keep its doors open until at least 2030, as they buck the trend of banks and building societies retreating from the high street.

Nationwide had initially committed to keeping its 696 branches (including Virgin Money) open until 2028, but has now extended its ‘Branch Promise’ until the end of the decade.

None of its branches will be closed during this period, with the building society confirming it applies even when both a Nationwide and Virgin Money branch are close to each other.

The commitment comes as 6,626 bank and building society branches have closed since January 2015, according to research from Which?.

Between the start of 2025 and the end of 2026 alone, almost 350 Lloyds, Halifax, and Bank of Scotland branches will close their doors.

Similarly, NatWest closed 53 branches in the first half of the year. Meanwhile, Barclays will close 99 branches, and Santander will close 95 branches before the end of the year.

Amid these closures, Nationwide says demand for physical banking services remains high.

In the 12 months to September 2025, there was an 11% increase in the number of customers using Nationwide branches, as 33% of current accounts and 22% of savings accounts were opened in a branch, according to the building society.

ATM usage rose by 5% in the same period, with a 17% increase of non-Nationwide customers using in-branch cash machines.

The increased demand for Nationwide’s physical banking services is especially high in the 133 towns and villages in the UK where there are no longer any other bank or building society branches.

In these towns, current account openings are up 29% year on year and in-branch ATM usage is up 25% overall, and 96% for non-Nationwide customers, the building society said.

Jessica Sheldon, deputy digital editor at MoneyWeek, said: “It’s so important customers can access face-to-face banking services if they need to.

“Banking is an essential service to many, including the most vulnerable, and while millions of people in the UK use online and mobile banking, IT outages can and do happen. It’s alarming to see how many bank branches have closed in the past decade.”

Why is Nationwide keeping its branches open?

In 2019, Nationwide first pledged to keep its branches open until at least 2026, and then renewed it to last until 2028.

The promise was also extended to include all Virgin Money branches last year after its acquisition of the bank in October 2024.

It has now renewed and extended its branch promise to 2030 as the building society says branch closures have a “disproportionate impact on vulnerable customers”. This can especially be the case for older people who rely on face-to-face services for baking support.

At the same time, the building society says younger people still rely on branches too as over one in ten new Nationwide student accounts were opened in branches this academic year.

Though other banks have justified their closures by arguing that many customers prefer to bank online and have instead diverted funds to digital innovation, Nationwide’s data shows that this is not the case for all people.

Dame Debbie Crosbie, group chief executive of Nationwide, said: “Our customers can be confident that they can bank with us whichever way they choose. Branches are important to our customers, to communities, and to the health of our High Streets. That’s why Nationwide will continue to keep branches open in addition to our investment in online and telephone channels.”

How to access banking services when your local branch is closed

It is becoming more difficult for some to access physical banking services amid the ongoing wave of bank closures.

Research by Which? in January 2024 found 30 parliamentary constituencies have no bank branch anywhere in them, leaving around 3 million people with no access to local face-to-face banking services.

If your local bank branch closes, you might consider moving to another bank or building society with a physical presence nearby. Some may have bank switching offers – for instance Nationwide currently offers £175 as a bonus when you switch.

If you cannot or do not want to switch providers, you can instead look at where your closest banking hub is.

A banking hub is a shared banking facility that lets customers from various banks and building societies carry out banking services like withdrawing or depositing money, making bill payments, or speaking to an adviser.

There are currently around 150 banking hubs in the UK, with plans to increase this to 350 over the next five years.

If there isn’t a banking hub nearby, another alternative is by using one of the 11,635 Post Office branches in the UK – most of these offer ‘everyday banking’ services such as withdrawals and deposits.

Nationwide Building Society is offering customers £175 if they move their current account to the building society.

To claim the bank switching deal, customers must have started their application on or after 18 September, complete a full switch using the Current Account Switch Service (CASS) and not have benefitted from another Nationwide switching offer.

You must transfer at least two Direct Debits as part of your switch. Other automatic payments, like standing orders and recurring card payments do not count.

Once the application is approved and the account is switched, customers must pay in at least £1,000 and make one debit card payment within 31 days of account opening or applying to switch into an existing account.

The eligible accounts to switch to include the FlexPlus, FlexDirect, and FlexAccount current accounts.

Customers will receive the £175 payment within 10 days of meeting all the criteria.

Switching to Nationwide could put you in line for extra payouts if the building society continues distributing its £100 ‘Fairer Share’ payment, as it did in 2023, 2024 and 2025.

The building society says it intends to make its ‘Fairer Share’ payment annually, provided it would not be detrimental to its financial strength and is subject to board approval.

Tom Riley, director of group retail products at Nationwide, said: “It's never been more rewarding to be a Nationwide member and that’s why we want to help more people benefit by offering this switching offer.”

Which Nationwide accounts can you switch to?

To claim the £175 switching offer, customers must move to one of Nationwide's three main current accounts.

• FlexPlus: A packaged account that offers family travel insurance, phone insurance, and breakdown cover for a fee of £18 a month.
• FlexDirect: An online account that pays 5% interest for 12 months and offers 1% cashback on debit card spend up to £60. The account is fee-free.
• FlexAccount: An everyday current account with no monthly fee.

Customers are free to choose to switch to any of the three accounts and will still receive the £175 reward if they meet all other criteria.

The number of “green mortgage” deals available to homeowners is growing – but how do they work, and who qualifies for one?

Most high-street lenders now offer some kind of green mortgage. They are usually focused on the energy efficiency of homes, and there are two main types.

The most common approach is to offer those buying a property with a high energy performance certificate (EPC) rating, typically A or B, a slightly better mortgage deal. For example, a lower mortgage rate, cashback or a cheaper fee.

The other type is an incentive for homeowners who want to improve the efficiency of their property. This could be a preferential interest rate for additional borrowing to fund things like solar panels or heat pumps, or cashback once the improvements are complete.

Last year, Virgin Money launched a retrofit mortgage offering borrowers up to £15,000 cashback to go green. This has now been reduced to £10,000.

Nicholas Mendes, mortgage technical manager at the broker John Charcol, tells MoneyWeek: “Ten years ago, there were hardly any green mortgages. Now more than half of lenders have one.” According to Moneyfacts, there were a total of 765 green mortgages on the market in mid-August.

Research by the Green Finance Institute, which launched the Green Home Finance Roadmap in August to encourage sustainability across the UK mortgage market, found that half of all homeowners would use a green mortgage to help them buy or upgrade to a more energy-efficient home.

With house prices rising, it makes sense to see if you could save money with a green mortgage, particularly if you’re buying an energy-efficient property, or would like to make home improvements like adding insulation, double glazing or solar panels.

About 1.5 million dwellings in England now have solar panels – nearly 6% of dwellings – according to Nationwide.

We look at how green mortgages work, who’s eligible, and whether they represent the best deal on the market.

How do green mortgages work?

A common misconception with green mortgages is that they are more environmentally friendly than conventional mortgages, or that the lender is “green”.

However, the “green” in green mortgages refers to the requirements needed to qualify for the deal.

“It does not mean that your mortgage lender will be investing your payments into green initiatives or schemes,” notes Terry Higgins, managing director of TNHG New Build Mortgages.

About 80% of UK homeowners admit they are not familiar with green mortgages and the benefits they offer, according to a survey by David Wilson Homes.

Higgins gives the following definition: “Green mortgages are designed to reward people living in energy-efficient homes or people carrying out green home improvements, and they can come with various benefits, including cashback, lower interest rates, and potentially the ability to borrow more."

Note that green mortgages have lots of different names, such as Green Reward, Green Living Reward and Retrofit Mortgage.

Who is eligible for a green mortgage?

Green mortgages aimed at home buyers are generally only available for properties with an EPC rating of A or B.

Some lenders will look at the standard assessment procedure (SAP) rating – the methodology behind the EPC – to determine if a property is eligible for its green mortgage.

For example, Nationwide offers a Green Reward for homes depending on their SAP rating. Those rated an SAP of 86-91 will receive £250 cashback and those above 92 receive £500 cashback.

Some green mortgages are restricted to new-build homes that are energy-efficient.

Mendes says that eligibility is a barrier with these products. “Most deals are limited to EPC A or B properties, which means new-builds dominate. Older homes rarely qualify, with fewer than 10% of pre-1900 houses even reaching a C rating,” he says.

In terms of cashback rewards for homeowners making energy-efficiency improvements, you usually have to have your mortgage with that lender to begin with. If you want to install, say, a heat pump or solar panels, you can then look to see if your mortgage provider is offering any cashback.

Some lenders offer lower interest rates or even interest-free borrowing for customers that want to fund green home improvements.

Before applying, you’ll need to check whether your home improvement meets the eligibility criteria, as well as any other terms and conditions.

What green mortgages are available?

Some lenders offer cashback to home buyers taking out their green mortgage.

David Hollingworth, associate director at the broker L&C Mortgages, highlights HSBC, which offers £350 cashback for energy-efficient homes with an A or B rating, while Halifax applies £250 cashback. Nationwide pays out cashback of up to £500.

NatWest offers an improvement to the product pricing, often offering deals with the lowest rates but with reduced fees. For example, it currently offers a two-year fixed rate at 3.88% for purchases up to 60% loan-to-value (LTV) with a £1,495 fee. Those buying a property with an A or B EPC rating can have the same rate but with a lower £995 fee, says Hollingworth.

Barclays offers green mortgages for new-build properties. It has a green deal five-year fix at 3.95% to 60% LTV with £899 fee.

On average, green mortgage rates are lower than standard mortgage rates.

For homeowners making energy efficiency improvements, Nationwide offers interest-free borrowing for two years or five years on a loan worth up to £20,000 for eligible green improvements. This includes a boiler upgrade, solar panels, air source heat pumps, cavity wall insulation, double glazing or replacement windows, electric car charging point and loft insulation. You need to have a Nationwide mortgage to apply.

Meanwhile, Coventry Building Society has preferential further advance rates for eligible improvements.

Halifax offers cashback of up to £2,000 to existing mortgage customers that complete efficiency improvements with its Green Living Reward. The maximum is paid out to those installing a heat pump, £1,000 cashback is paid out for solar panels or a battery, while £500 is awarded for other energy-efficient home improvements.

Virgin Money’s Retrofit Boost Mortgage is slightly different as it involves taking out a mortgage, with a higher interest rate than its standard products, and then getting up to £10,000 cashback that must be spent on eligible improvements to the property being mortgaged.

Is a green mortgage the best deal for me?

A green mortgage deal can look tempting, especially if it undercuts the mortgage rate on the lender’s other products, or perhaps offers a lower fee or some cashback.

However, against the wider market, it might not be the cheapest deal for you.

Mendes comments: “Day to day, we often find that while these products look competitive against a lender’s own range, they aren’t the very cheapest on the wider market. Many high-street lenders will beat competition on price, even without a green badge.”

Hollingworth echoes this: “It’s always important to consider the wider market rather than head straight for a green mortgage. Whilst it could offer a better option, there could still be lenders without a green badged deal that could be more competitive.”

While the Moneyfacts data shows that on average, green mortgages have lower interest rates than non-green deals, Rachel Springall, finance expert at the website, agrees that homeowners and first-time buyers shouldn’t immediately assume that a green mortgage is the best option.

“Green mortgages are a niche part of the mortgage sector and navigating them could be a bit tricky as some might not be the best package for a particular borrower. The incentives offered on green mortgages are mixed, so it would be wise for borrowers to go through the options with a broker,” she notes.

Looking ahead, government targets for net zero housing and lenders’ own pledges, such as NatWest and Nationwide aiming for half their mortgage books to be at EPC C or better by 2030, mean there will be more development in this space, according to Mendes.

“There is genuine momentum, although politics could shift the pace,” he says.

“Right now, green mortgages are more about signalling direction of travel than changing the game on affordability. If incentives strengthen through bigger rate discounts or government support, they could become a much more meaningful part of the market.”

London house prices are forecast to rise by 6.5% next year – beating a prediction of 5% for the national average increase – according to an economics consultancy.

The punchy prediction follows years of underperformance for house prices in the capital. London house prices grew by just 1.4% over the past 12 months, according to Nationwide's Q2 index, giving an average price of £532,449.

In comparison, UK house prices rose by 2.9%, giving a price tag of £272,751 for the average home. The best-performing regions were Northern Ireland (up 9.7%) and the North (up 5.5%).

However, Capital Economics believes that after nine consecutive years of underperformance, the combination of lower mortgage rates and very limited supply in the pipeline suggests there is scope for London house prices to outperform the rest of the country over the next few years.

Ashley Webb, UK economist at the consultancy, comments: “With affordability most stretched in London, our forecast for quoted mortgage rates to fall from 4.2% in July to around 3.7% by 2026 suggests London house prices stand to benefit the most.

“Indeed, when interest rates rise, house prices in the capital tend to be hit much worse than elsewhere. But when interest rates fall, London house prices typically rebound faster.”

The loosening of mortgage lending criteria and the relaxation of long-standing restrictions, which mean lenders can issue more than 15% of new mortgages with a loan-to-income ratio above 4.5, should also give property prices in London locations a boost, says Webb.

“Many homebuyers are now able to borrow more than before. With London’s average house price-to-earnings ratio one-and-a-half times bigger than the UK average, these measures will provide the largest support to house prices in the UK’s most expensive region.”

Webb names low supply of new homes in London as a third reason why property prices will rise.

Despite data showing a glut of supply being a reason behind a faltering property market – which could “temper house price growth in the capital in the near term” – Capital Economics says “housing starts in London as a share of existing dwellings had fallen by a further 68% by Q1 2025 while the rest of the UK recorded an 80% rebound”.

Webb adds: “Granted, as there is less space in London to build new homes relative to other UK regions, London typically has a higher share of new homes that are converted from existing residential and commercial buildings than elsewhere.

“But the recent rate of conversions in London does not adequately compensate for the very low level of new-build homes.”

This all means that house prices in the capital could grow faster than the UK average – although Webb doubts “the London price premium will return to its pre-pandemic level” and points out that some London areas will perform better than others.

Do other experts agree with this forecast?

A 6.5% London house price rise versus 5% for the UK overall is a bold prediction by Capital Economics.

The estate agency Knight Frank does not agree, with a 4% forecast for UK house prices next year, and 3% for Greater London. When drilling down to prime central London, the figure drops to 2.5%.

Looking ahead to 2027, 2028 and 2029, Knight Frank still thinks the capital will lag the national average.

Tom Bill, head of UK residential research at Knight Frank, tells MoneyWeek: “We expect London house prices to underperform the rest of the UK into next year, continuing the pattern of recent years.

“Generally speaking, more affordable parts of the country have seen higher levels of house price growth due to affordability constraints and nowhere is the squeeze tighter than in the capital. The house price gap between the rest of the UK and London will narrow but not to the point that it reignites demand in the capital over the next couple of years.”

He adds that parts of the UK economy, such as tech, biosciences and retail warehousing, are expected to strengthen in the coming years – but these tend to be located away from the capital, so won’t benefit London house prices.

According to Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chairman, any increase in house prices in London over and above the rest of the UK is likely to be “generated by more settled economic conditions and improvements in affordability and buying power”.

He points out that London continues to be desirable to potential buyers despite higher property prices because of its strong employment prospects, and “it is hard to see that changing anytime soon”.

However, Leaf stresses that there’s a lot of variation in the capital, and any house price increases will depend on the actual area, and the type of property.

“We would expect higher price increases in the more popular areas in London, particularly in the suburbs, as in the centre the market is likely to continue to be compromised by the changes to non-dom status.

“Values also differ according to property type – on the ground we are seeing that needs-driven buyers are looking for longer-term single-family houses rather than activity in the flat market, which is so plagued by over-supply at present.”

Why have London house prices underperformed in the past?

London enjoyed a period of outperformance between 2010 and 2016, according to Capital Economics, but since then, house prices in the capital have underperformed the UK average.

This is due to several reasons, such as slowing employment growth in London after the Brexit referendum, higher taxes for buy-to-let landlords (which has encouraged some to sell), and higher mortgage rates.

The freedom of remote work after the pandemic – allowing households to move to cheaper locations with larger homes and outside space – has also kept a lid on London house prices.

Not all banks are equal, so it’s no wonder that Brits are compelled to switch accounts in search for something better.

That could be anything, whether it’s a bank switching offer with a lucrative cash bonus, access to a bank branch, higher interest rates or spending benefits.

The latest Current Account Switch Service (CASS) data shows that more than 12.4 million switches have taken place since the service launched in 2013, with over a million switches made in 2025.

We look at the most popular banks that customers switched their accounts to, what made them move, and whether you should switch banks.

Which were the most popular banks in 2025?

Nationwide again proved to be the most popular banking company that customers switched to between July and September. The building society amassed the highest net switching gains (41,450).

It was followed by Monzo in second place (9,934), and NatWest in third (8,731).

We’ve compiled a list of the top banks and building societies in terms of net gains in a table below.

Customer data from the Current Account Switch Service is published three months in arrears, which is why the data here is from July to September, and not October to December.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Of the banks and building societies listed above, four have had cash bonuses for customers switching their accounts. This includes Nationwide, First Direct, NatWest and TSB.

Nationwide’s lucrative year-round offers, such as the £100 Fairer Share bonus, which it has offered for three consecutive years now, the Thank You bonus, and member-only savings products, may have proved attractive to a large number of customers.

Meanwhile, Monzo paid customers up to £50 to refer a friend, which may have driven its popularity.

Which were the least popular banks in 2025?

While a few banks gained new customers, a lot more lost out.

Santander saw the biggest losses (-19,989), as 42,609 switches were made from the high street bank, while it gained 22,620 new customer accounts.

In second place is Halifax with a net loss of -17,341, while Chase had a net loss of -7,623. Chase lost out on many customer accounts after axing its easy access saver rate.

In the table below, we list the banks that suffered from the highest net losses between July and September.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Access to online or mobile banking was the most frequently cited reason for choosing a new account, mentioned by 44% of respondents. This was followed by better customer service (36%), attractive interest rates (34%), spending benefits (28%) and other benefits or features (28%).

It comes after more than £31 billion was left in savings accounts paying 1% interest or less, with savers being urged to switch to an inflation-beating savings account.

Should you switch your bank account?

Switching has now become easier than ever before. According to the Current Account Switching Service data, 93% of customers in the last three years were happy with the switching process.

If you use CASS, it takes seven days for the switch to complete. It makes sure that your direct debits, standing orders, and any new payments to your old account are transferred automatically, even after you’ve switched.

However, that doesn’t always mean that moving your money to another account will be the best option for you. It’s always best to consider the long-term value of a current account, like whether you’re getting better customer service, how much you’ll incur in fees or charges, and if you have access to physical branches.

Depending on the type of account you hold, your bank may already be offering better savings rates, travel perks, or spending benefits. So if you’re switching for the cash incentive alone, it might not be worth it in the long run.

We look at whether switching banks can affect your credit score in a separate piece.

Nationwide has confirmed eligible customers will receive a £100 Fairer Share payment for the fourth consecutive year this summer.

The building society will issue the payment to around 4.4 million of its members in June after Board approval on 20 May.

Once the 2026 payment has been made, more than £1.5 billion will have been paid to members since Nationwide’s first Fairer Share payment in 2023.

Nationwide is also launching a new £175 current account switching offer as well as a 5% Member Exclusive Bond today (21 May).

Dame Debbie Crosbie, Nationwide’s chief executive, said: “Our growth in mortgages, retail deposits and personal current accounts is leading the market, which means we can again make a Fairer Share payment to eligible members, and offer a new Member Exclusive Bond.”

When and how will the Nationwide 2026 Fairer Share payment be made?

The roughly 4.4 million eligible Nationwide customers will receive their £100 payment between 10 and 30 June 2026.

The payment will be made into open Nationwide current accounts via electronic transfer.

If you have a current account in your sole name, it will be paid into this one, but it will be paid into a joint account if you do not have a current account in your sole name.

The payment will show up in your current account statement as “Nationwide Fairer Share Payment”.

Nationwide said if you don’t have an open current account when it tries to make the payment, you won’t receive it.

There is a full list of reasons why customers may not receive the £100 payment on the Nationwide website.

Who is eligible for the payment?

There are various eligibility rules to meet.

Firstly, to be eligible for the Fairer Share payment in 2026, you must have had either a qualifying current account and qualifying savings account, or a qualifying current account and qualifying mortgage.

A current account will qualify if it was open on 31 March 2026. A current account held with Clydesdale, including a Virgin Money current account, does not meet the qualifying criteria for the 2026 Fairer Share payment, but may in 2027 if Nationwide decides to make one then.

What are the qualifying current accounts?

If you had the FlexPlus account, you needed to have paid the monthly fee for maintaining the account.

For FlexOne, FlexStudent or FlexGraduate, you must have have received at least one payment in or made one payment out of your account during March 2026. Any charges or interest do not count.

You do not need to have met the above requirements if you completed a switch to your FlexOne or FlexStudent account using the Current Account Switch Service between 1 January 2026 and 31 March 2026.

For FlexAccount, FlexDirect or FlexBasic, you needed to have met one of the following requirements:

• In two of the three months of January 2026, February 2026 and March 2026, you must have received at least £500 into your current account (transfers in from other Nationwide accounts do not count), and have made at least two payments out of your current account. For example: you paid in £500 and made two payments out in both February and March 2026.
• Or, in two of the three months of January 2026, February 2026 and March 2026, you must have made at least 10 payments out of your current account. For example: you made 10 payments out in January 2026 and 10 payments out in March 2026.

What are the qualifying savings accounts and mortgages?

A savings account will qualify if there was at least £100 in one or more Nationwide personal savings accounts or cash ISAS at the end of any day in March 2026.

Nationwide Investment accounts, such as stocks and shares ISAs, don’t count as a qualifying savings account, nor do Nationwide Business Savings accounts.

A savings account with Clydesdale, including a Virgin Money savings account, does not count.

To be eligible via a qualifying mortgage, you must have owed at least £100 on a Nationwide residential mortgage on 31 March 2026.

This does not include a mortgage held with Clydesdale (Virgin Money or Yorkshire Bank) or Yorkshire Bank Home Loans Limited, which are Nationwide subsidiaries.

Nationwide commercial and buy-to-let mortgages also don’t meet the mortgage eligibility criteria for the 2026 Fairer Share payment.

What you can do if you think you’re eligible for the payment but don’t receive it

If you think you are owed a payment in June and don’t receive it, you should contact Nationwide either through the chatbot on its website or by phoning the building society on 03457 30 20 11.

You can also visit your nearest branch. In November 2025, Nationwide pledged to keep all its bank branches open until at least 2030.

Nationwide is pulling its market-leading £175 switching bonus at the end of March, after gaining the most current account customers out of any bank or building society.

The bonus is currently the biggest switching offer for customers moving their current account, along with Lloyds Bank and First Direct, which also pay £175.

The incentive has proved popular with switchers, with the latest Current Account Switch Service report showing Nationwide as having the highest net switching gains of all providers.

From July to September 2024 – the latest figures available – Nationwide had the highest net switching gains with 22,622, followed by Barclays (18,053) and TSB (12,282).

The building society says its £175 bonus is an example of how it “invests profit for the benefit of members”. Last year Nationwide returned £385 million to eligible members through a £100 Fairer Share payment.

It has made the payment for two years in a row, and intends to make another Fairer Share payment again this year, “providing it would not be detrimental to the society’s financial strength and subject to board approval”.

Nationwide, which is the world's largest building society with more than 17 million customers, has offered its £175 switching bonus since last September. Prior to that, it offered a more generous £200 switching perk.

Tom Riley, director of retail at Nationwide Building Society, said: “Our switching incentive is a demonstration of how we are making banking more rewarding for customers. We would encourage anyone looking to switch their account to do so now to benefit from the offer as it will be withdrawn later this month.”

How to qualify for Nationwide’s £175 switching bonus

The £175 switching perk will be withdrawn at 23:59pm on Monday, 31 March, so you’ll need to be quick if you want to grab it.

The Nationwide bonus differs to other switching incentives because it is open to both new and existing customers. To qualify, you must complete a full switch using the Current Account Switch Service. A full switch means that the old account is closed and all payments are transferred to the new account.

A minimum of two active Direct Debits must be moved to the new account as part of the switch. Customers must also deposit £1,000 and make one debit card payment within 31 days.

Note that cash withdrawals, gambling or cryptocurrency transactions and mortgage payments do not qualify as eligible debit card transactions.

Also, the £1,000 credit cannot come from another Nationwide account or credit card.

The new current account must be opened via Nationwide’s website, internet bank or mobile banking app. The switch must be requested as part of the application. If you’re a Nationwide customer, you can switch a current account you have with another provider to an existing account you hold with Nationwide. The switch must be completed within 28 days of it being requested.

Customers can switch to one of Nationwide’s three main current accounts: 

• FlexPlus: a packaged account with worldwide family travel insurance, mobile phone insurance, UK and European breakdown cover and commission-free usage abroad for £18 a month
• FlexDirect: a fee-free online account paying 5% AER credit interest and 1% cashback on debit card spend for the first 12 months
• FlexAccount: a fee-free bank account where customers can bank online and in branch

Currently, the best fixed rate cash ISAs can help you grow your tax-free savings and are returning up to 4.72% on your cash.

ISAs are some of the best savings vehicles you can use in the UK, as they allow for up to £20,000 of tax-free savings a year.

If you're seeking the best cash ISA with a fixed rate, we list the top options currently on the market. We look at how many ISAs you can have in another guide.

Best 1 year fixed rate cash ISAs

If you’re willing to lock away your money for one year without withdrawing any of it, you could grow your savings by up to 4.7%.

Best cash ISAs up to 18 months

If you are after an account that keeps your money growing for up to 18 months, you can earn up to 4.32% using one of the following savers.

Best 2 year cash ISAs

Two-year fixed rate ISAs are a good option for people who want to grow their money in the medium term without worrying about micro-managing their savings. Savers can earn up to 4.71%.

Best 3 year fixed rate ISAs

Savers who are willing to lock their cash away for three years can access interest rates of up to 4.66% by using one of the following savings accounts.

Best 4 year fixed rate ISAs

If you’re putting your money away for four years, you can earn up to 4% using one of the following accounts.

However, it is worth bearing in mind that if you are willing to keep your money in savings for an extra year, you can access a higher interest rate of 4.72%.

Best 5 year fixed rate ISAs

A five-year fixed-rate ISA is a good option for long-term savers who are trying to save towards a financial goal in the future.

The following accounts allow for up to 4.72% returns on your savings.

Around 4 million Nationwide customers received a £100 Fairer Share payment today (10 June).

Nationwide plans to send the bonus to a total of 4.4 million customers between 10 June and 30 June, distributing a total of around £440 million of the building society’s profits.

Almost all of 2026’s payments have already been sent straight into eligible Nationwide accounts, but the building society says around 400,000 eligible customers are still yet to receive their bonus.

Nationwide has given itself a deadline of 30 June to complete all remaining payments, so do not be alarmed if you expected to get a bonus and have not received it yet.

The payment has been one of the major benefits of banking with Nationwide since 2023, when it made its first Fairer Share payment.

As a mutual owned by members not shareholders, Nationwide is able to share some of its profits with members rather than paying dividends.

The number of customers eligible for the bonus has climbed massively since Nationwide first started the ‘Fairer Share’ scheme in 2023, when around 3.4 million people qualified.

That number climbed to 3.85 million in 2024, 4 million in 2025, and 4.4 million in 2026.

However, not all Nationwide customers receive the bonus. It is just those who meet a certain set of eligibility criteria.

Who was eligible for the Nationwide Fairer Share payment in 2026?

Nationwide announced the eligibility criteria for this year’s Fairer Share payment when they delivered their 2026 results in May and confirmed the payment would go ahead.

The criteria were broadly the same as in previous years, with the building society saying the payment is designed to reward members who “choose Nationwide for their everyday banking, alongside holding a qualifying savings or mortgage product”.

The full criteria for 2026 is listed below.

2026 Fairer Share eligibility criteria

To get the bonus, you must have either had a qualifying current account and qualifying savings account, or a qualifying current account and qualifying mortgage.

If you had the FlexPlus account, you needed to have paid the monthly fee for maintaining the account to qualify.

For FlexOne, FlexStudent or FlexGraduate, you must have made one payment out of the account, or received one payment into the account in March 2026 to have been eligible. Any account charges or interest did not count.

If you completed a switch to your FlexOne or FlexStudent account using the Current Account Switch Service between 1 January 2026 and 31 March 2026, you did not have to meet the above criteria.

Finally, for FlexAccount, FlexDirect or FlexBasic, you needed to have met one of the following requirements:

• In two of the three months of January 2026, February 2026 and March 2026, you must have received at least £500 into your current account (transfers in from other Nationwide accounts do not count), and have made at least two payments out of your current account. For example: you paid in £500 and made two payments out in both February and March 2026.
• Or, in two of the three months of January 2026, February 2026 and March 2026, you must have made at least 10 payments out of your current account. For example: you made 10 payments out in January 2026 and 10 payments out in March 2026.

What are the qualifying savings accounts and mortgages?

To get the ‘Fairer Share’ payment, you needed to have had a qualifying savings account or mortgage on top of your current account.

You would qualify for the savings account element if you held at least £100 in one or more in Nationwide personal savings accounts or cash ISAS at the end of any day in March 2026.

Nationwide investment accounts (like a stocks and shares ISA), business savings accounts, or accounts with Clydesdale and Virgin Money did not qualify.

As for mortgages, you had to have owed at least £100 on a Nationwide residential mortgage on 31 March 2026 to be eligible.

Commercial and buy-to-let mortgages from Nationwide did not qualify, and neither did mortgages from Nationwide’s subsidiaries.

Will Nationwide's Fairer Share payment be taxed?

In 2025, the £100 Fairer Share payment was treated as interest for UK income tax purposes.

While Nationwide did not deduct any income tax from the payment, it was reported to HM Revenue & Customs (HMRC).

How much tax you pay on the 2026 bonus will depend on how much you’ve already earned from savings interest this tax year.

If you are a basic rate taxpayer, you do not have to pay any tax on savings interest up to £1,000. This is known as the personal savings allowance (PSA). Interest earned above that will be taxed at 20% (rising to 22% from April 2027).

The tax-free PSA falls to £500 for higher rate taxpayers – interest earned above £500 is taxed at 40% (increasing to 42% from April 2027).

Additional rate taxpayers have to pay tax on every penny of interest their cash earns, taxed at 45%.

If you haven't used your personal allowance (£12,570) on wages, pension or other income, then you can also use it on interest on savings.

If your income is less than £17,570 then you'll qualify for the starting rate for savings. This means you can get up to £5,000 of interest without being taxed on it.

Our "savings tax trap" guide explores the rules in more detail.

"Nationwide says I’m not eligible for a Fairer Share payment, but I think I am. What should I do?"

Nationwide said it “will decide whether you are eligible for the Fairer Share payment based on the information we hold about you and the products you have with us”.

If it has incomplete, inaccurate, or out-of-date information, it may incorrectly exclude customers from the payment. The building society says: “We will make the payment if we find out you were wrongly excluded, but we will not be liable for any other loss you may incur if this happens.”

It advises: “If, after checking your eligibility, you think you have been wrongly excluded, please get in touch and if we have got it wrong, we will take steps to put it right.”

Will there be a Nationwide Fairer Share payment in 2027?

Nationwide will likely announce whether it will distribute a Fairer Share payment in 2027 when it releases its next set of full year results. This will probably happen in late spring 2027.

Nationwide has previously said it wants to make a Fairer Share payment every year to give back to its customers – though this is dependent on how well they have performed in a given year to ensure it is not “detrimental” to the strength of its finances.

The first Fairer Share bonus started in 2023 and payments were also made in 2024, 2025 and 2026.

Nationwide is under no legal obligation to make the Fairer Share payment and it can be stopped for any reason whatsoever.

The building society has said the payment is dependent on Nationwide’s financial strength and is subject to board approval.

If Nationwide has a good financial year in 2026/27, we can expect to see one, but if it misses expectations, there may be no payment.

Nationwide launched an 8% regular saver account in September 2023. It was one of the highest-paying savings accounts on the market at the time, and a big step up from the 4.5% interest that the account previously paid.

The regular savings account was wildly popular, and the UK’s biggest building society kept it on sale for almost five months. Nationwide dropped the rate to 6.5% on 8 February last year.

Many savers took advantage of the 12-month account paying 8%. It has now matured, leaving customers wondering what their options are.

The Bank of England base rate has fallen to 4.5% (compared to 5.25% a year ago), and markets are expecting further interest rate cuts this year. Savings rates have understandably tumbled. The best easy-access rate is now 4.75%.

According to Moneyfacts, the average rate on a one-year fix across the savings market has dropped from 5.42% on 1 October 2023 to 4.31% on 1 October 2024. It is currently 4.17%, as at 26 February 2025.

Faced with this different environment, savers will likely be wondering what to do. Should they open another regular saver account, and if so, what’s the best rate at the moment? What about leaving the money with Nationwide? If you remain with the building society, it could make you eligible for Nationwide’s Fairer Share £100 bonus, if it runs the scheme again this year.

Or perhaps you should switch to the best one-year fixed-rate account on the market?

Plus, are there any cash bonuses on offer that could help during this time of falling interest rates?

We delve into all of this to work out what Nationwide customers should do whose 8% regular saver has finished.

What are the best regular saver accounts right now?

You may be surprised to learn that you can still get 8% interest on a regular saver account. However, there is a catch. The length of the term is only six months.

The account in question is offered by Principality Building Society. Savers can pay in up to £200 a month (up to £1,200 during the fixed period), and be paid the 8% fixed interest when the account matures. No withdrawals are allowed during the six-month term.

If you don’t want to tie your money up for a whole year, this could be a good option. However, note that when the account does mature, in say August if you open it today, savings rates could have fallen again. So you may have to accept a lower rate wherever you decide to park your cash when the account matures.

Also, note that some regular savers do allow withdrawals. If you think you may need access, a 12-month account that allows withdrawals could be a better bet, although you will have to accept a lower rate than 8%.

The next-highest interest rate on a regular saver account is 7%. This rate is offered by First Direct and the Co-operative Bank. Both accounts run for 12 months.

With First Direct, you can pay in between £25 and £300 each month. You need to have a current account with the bank, and no withdrawals are allowed.

With the Co-op regular saver, you can pay in between zero and £250 a month. Again, it’s exclusively for current account customers. However, it differs from most other regular savings accounts, because you can make as many withdrawals as you like. The trade-off is that the interest rate is variable so could change during the 12 months.

Deciding between Co-op and First Direct could come down to whether you want withdrawals, whether you prefer a fixed interest rate, and if you want to save a higher amount each month.

Does Nationwide still offer a regular saver? 

Yes, it does. Nationwide’s regular saver now pays 6.5%. The criteria is similar to the 8% one: you’ll need to have a current account with the building society, there is no monthly minimum deposit and you can save up to £200 per month.

The account allows up to three withdrawals. On your fourth withdrawal, the rate will drop to 1.75% (this was previously 2.15%).

The 6.5% interest is only a bit less than the 7% rates offered on the best 12-month regular savings accounts. If you want the quickest, simplest account to open, you may prefer to stick with Nationwide as you know you’re eligible for the account and you’re familiar with it, plus it’s easy to open in your online banking or on the app.

It’s also good to know you can make a few withdrawals without affecting the interest rate.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, tells MoneyWeek: “If customers are satisfied with the service they have had, then this rate is still very competitive in the market.”

She adds while the First Direct 7% account may look appealing, “customers have to open and fund a first direct 1st Account (current account). It is worth pointing out that there are lots of regular savers that are linked to current accounts, but not all of them require regular funding”.

The downside with the Nationwide regular saver is that, like the Co-op account, the rate is variable. Nationwide could choose to reduce the 6.5% rate at any time, especially if the Bank of England base rate gets cut again.

Nationwide v First Direct: how the interest compares

You may be thinking of switching to First Direct to grab its 7% regular saver, rather than settling for Nationwide’s 6.5% deal.

We asked Moneyfactscompare.co.uk to crunch the numbers to see how the interest compares if you saved £200 for a month for one year. With First Direct, you would have a total sum of £2,492.98 at the end of the 12 months.

With Nationwide, you would have £2,486.20. This is a difference of just £6.78.

If you want to save more each month (you can save up to £300 with First Direct), and the peace of mind that it’s a fixed, rather than variable, rate, you may like to move your money to First Direct. But if those things aren’t important to you, for the cost of less than £7 you may prefer to sit tight and stay with Nationwide.

What about moving to a different type of savings account?

Now that your Nationwide regular saver has matured, maybe you don’t need to open another one, and a different sort of account would suit you and your cash better.

The first thing to consider is whether you need access to your cash. If you don’t, a one-year savings account could work well. This guarantees you a set interest rate for the whole year (which could be helpful if savings rates fall elsewhere in the market). But you won’t typically be able to access your money.

We round up the best one-year fixed savings accounts.

If you do want to be able to withdraw money, there are still some decent easy-access savings accounts around, despite the trio of base rate cuts that we’ve seen since last August.

Note that these savings rates can change at any time, so even if you open a 4.5% account, the rate could fall shortly after. This means you’ll need to be ready to switch to a different account to maintain a competitive return.

The best easy access savings rates on offer at the moment are from Monument Bank (4.75%), Principality Building Society (4.7%) and Coventry Building Society (4.66%).

Springall comments: “Picking the right savings account depends on how soon a saver needs access to their cash. There are some short-term deals to consider, such as easy-access accounts, notice accounts or fixed bonds of terms less than a year. If savers are unsure, they could always grab a regular savings account that does not have a fixed term, or a simple easy-access account that offers full flexibility.”

If you’re concerned about paying tax on your interest, don’t forget to maximise your cash ISA. All adults can pay in up to £20,000 across their ISAs each tax year, and the interest is completely tax-free. You can choose an easy-access or fixed-rate cash ISA.

If you like the idea of winning prizes with your money – rather than a regular amount of interest - then you could consider Premium Bonds. Any prizes are tax-free, but note that while some lucky customers will scoop prizes, others won’t win anything at all.

Are there any switching bonuses that could boost my savings? 

Yes, there are a few switching bonuses on offer for customers transferring their current account. You may then qualify for a regular saver with that bank or building society.

For example, Nationwide is paying £175 to customers who switch a non-Nationwide bank account with at least two active Direct Debits, and then close that account.

The interesting thing about this deal is that it’s open to existing Nationwide customers, as well as new customers. So, even if you have a current account with the building society, and perhaps enjoyed the 8% regular saver, if you have an account with a competitor you could move it across and get £175 free cash.

If you’re eyeing up First Direct’s 7% regular saver, you could switch to the bank and also get a £175 bonus. Meanwhile, you could get up to £150 for moving to the Co-op (which also has a 7% regular saver).

Make sure you check the small print and understand the criteria to get the switching bonus, as well as how the current account works that you are opening.

Nationwide has launched a new bank switch offer in a bid to woo customers to its Flex current account range.

The building society is offering £175 to new customers who sign up to one of three current accounts: FlexPlus, FlexDirect and FlexAccount. These come with a regular savings account that offers an above-inflation rate.

It’s the second new switcher offer to have been announced in September after First Direct also unveiled a new incentive. While Nationwide’s latest deal isn’t quite as generous as the £200 it offered earlier in 2024, the building society is popular, meaning the offer could end soon. Nationwide has also scored points with customers over its ‘Fairer Share’ loyalty bonus, which paid out £100 to members this year.

As with any switching bonus, we recommend checking the small print as well as what hoops you need to jump through before deciding to make the move. You should also consider whether the account you’d like to switch to meets your needs. If you’ve got a credit application coming up, it’s worth noting that switching can have an impact on your credit score.

So, how can you get the £175? Here’s everything you need to know about Nationwide’s latest switching deal.

How does the Nationwide bank switch offer work?

Nationwide is offering £175 to any new customers who opt to switch to one of its Flex current accounts. These accounts are:

• FlexAccount: a no-frills account that offers online or in-branch banking with no fees.
• FlexDirect: an interest-paying current account with no fees (but several rules - see more below).
• FlexPlus: a packaged account offering a load of perks - including worldwide travel insurance and no charges for using your card abroad - for a £13 a month (£156 a year) fee. This fee is rising to £18 a month (£216 a year) from 1 December.

To get your hands on the free money, you will need to initiate a switch using the Current Account Switching Service (CASS). You can do this by opening an account with Nationwide via its website or mobile banking app, and requesting a CASS switch. The account you’re switching from must have at least two direct debits that will be transferred with it.

When your new Nationwide account opens, you will need to deposit £1,000 into it (this can’t come from another Nationwide account or through Visa credit), and make one debit card transaction. Cash withdrawals, gambling and mortgage payments do not count. If you do this within 31 days of the account opening, the money will be wired into your account.

The other key bit of eligibility criteria is that it’s not open to those who have received a bonus for switching over a sole or joint account since 18 August 2021, and are trying to do so again for the same type of account. But, if you opened a sole account to get the last switcher incentive, Nationwide will allow you to get the bonus for switching over a joint account, and vice versa.

What is the difference between Nationwide’s Flex current accounts?

As mentioned above, the three accounts Nationwide is trying to get people to switch to come with different benefits and rules. Here’s what you can get.

FlexAccount

Nationwide’s basic offering. This standard account offers no perks and doesn’t charge fees. But it will make you eligible for the Fairer Share loyalty bonus, and you’ll be able to access Nationwide’s range of savings accounts which all currently offer inflation-busting rates.

The building society has also revealed that it will be bringing in changes to its overdrafts from November. With this account, as well as the other two (below), customers will get a £50 interest-free buffer if they dip into the contingency they’ve agreed with Nationwide.

FlexDirect

This fee-free current account pays you interest on your cash on the first day of each month. You will get a rate of 5% (fixed for a year) on balances of up to £1,500. To access this, you have to pay in £1,000 a month from a non-Nationwide account. Once the 12 months is up, the interest rate falls to 1%.

If you haven’t had a FlexDirect incentive before, you will also be able to get 1% cashback on your debit card transactions (capped at £5 a month). This will run for the first year of having the account. Another benefit is that you will get an interest-free arranged overdraft for the first 12 months.

A key thing to note with this account is that Nationwide deems it to be ‘self-service’. What this means is that customers can only bank online or over the phone. So, if you like having the option of in-branch banking, this account may not be suitable for you.

FlexPlus 

For £13 a month, you get lots of bells and whistles with this current account. Benefits include Aviva worldwide travel insurance cover for you and your family, Assurant mobile insurance, AA breakdown cover in the UK and Europe, as well as no charges on spending abroad.

You can also bank in any way you like, be that online, over the phone or in-branch. The rub is that the monthly fee will rise 38% to £18 a month (£216 per year) from 1 December. It means you’ll need to weigh up whether the perks meet your needs before signing up.

How does Nationwide compare with the rest of the market?

Given it offers plenty of ways of boosting the £175 cash bonus (for example, via Fairer Share and cashback), the Nationwide deal compares favourably with the only other incentive currently on market from First Direct. The process of securing the cash is also slightly easier than with First Direct, given you don’t need to log-in to digital banking and you only need to make one debit card transaction.

If you’re someone who wants to bank ethically, be that for environmental or other CSR reasons, Nationwide tends to outrank most other major banks. As a member-focused building society, it also beats shareholder-focused First Direct on this front.

But where First Direct has the measure of Nationwide is with the rate it offers on its regular saver, which is 0.5 percentage points higher at 7%. The HSBC subsidiary also routinely comes out on top in customer satisfaction surveys. The pair are tied when it comes to their online banking scores.

The bottom line is, there is no ‘best’ current account to switch to as it all depends on what you need from a current account. To keep in the loop with new deals and offers, see our guide to banks offering the best switching deals.

Choosing the best bank for your money isn’t always straightforward. From switching incentives and customer service to branch access, spending benefits and the interest rates on offer, there’s a lot to weigh up before deciding where your cash goes.

We look at the most and least popular banks in a separate guide, where Nationwide stood out thanks to its lucrative cash bonus, Fairer Share payments and top savings rates.

New analysis from Which? sheds light on the best and worst UK banks and bank accounts.

We look at the winners and losers, so you can see where your provider sits.

The best UK banks – how they rank

Which? asked thousands of customers how they would rate their banking providers. The data is based on several parameters, including ease of application and service in a bank branch, over the phone, online and app-based, and customer helplines.

In top place is Starling Bank, which is one of Which?’s recommended providers for the seventh consecutive year. The bank ranks highly in customer service and current account users are happy with its online banking service. Starling also launched a new AI banking tool that helps customers learn more about their spending habits.

Monzo is another one of Which?’s recommended providers. The challenger bank impresses customers with fee-free spending abroad, cashback on eligible spending and competitive savings rates, but falls short in customer helpline services.

First Direct is also in the top rankings – it’s one of only two banks which received full five stars for customer service and telephone banking. It also offers fee-free transactions abroad, and has an attractive bank switching deal.

Among more traditional high street staples, Nationwide ranks highly thanks to its extensive branch network. The building society has pledged to protect its branches from closures until at least 2030.

We look at the full results in the table below.

Source: Which? data based on a survey from September 2025. N/A means not enough responses for a star rating.

The best UK bank accounts – how they rank

Which? has analysed different bank accounts offered by bank and building societies. The parameters it has tested include interest paid, fee-free spending, interest-free overdraft and monthly fee.

Source: Which?. N/A means not enough responses for a product rating.

How to choose the best bank account for you

Despite the above findings, banking expert at Which?, Chiara Cavaglieri, says: “For too long, the biggest banks haven’t had to work very hard to keep customers, but challengers such as Monzo and Starling have quickly made their mark. They’ve forced bigger providers to innovate, and the result is a market where different providers shine in different areas. Even if you can’t bear to ditch your longstanding bank, think about what's important to you.”

With so many accounts to choose from, there are several factors to consider before you make a decision.

While a bank switching deal means customers have extra cash to cover the Christmas festivities, Rachel Springall, finance expert at Moneyfactscompare.co.uk, warns against making hasty decisions.

“An upfront free cash injection is a great sweetener, but consumers should only ever switch accounts if the new deal offers them better value,” she said, pointing out that while free cash offers don’t last forever, customers shouldn’t feel pressured to switch.

If you’re after spending perks and travel benefits, it might be worth checking out the best packaged bank accounts.

Springall said: “If customers opt into a packaged account, one that bundles in benefits, then they could find it to be more cost-effective than taking out separate insurance policies elsewhere, like travel insurance or mobile phone insurance.”

We look at whether travel insurance is worth it in a separate guide.

“There is a plethora of different benefits to choose from, such as high interest current accounts, those with a competitive overdraft tariff, as well as packaged accounts with integrated insurance plans or even accounts that reward savers or spenders,” Springall added.

“Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in-store, so they can avoid paying out on transaction fees compared to a more traditional bank account.”

FSCS scheme: Are your savings safe?

The Financial Service Compensation Scheme (FSCS) protects your savings and investments if a financial services firm goes bust.

This includes current accounts, savings accounts, Shariah-compliant accounts, ISAs, and more.

On 1 December 2025, the FSCS limit rose from £85,000 to £120,000. It means that you will be covered for up to £120,000 if your money is with an FSCS-protected institution.

You can check which institutions are covered on the FSCS website.

Nationwide has completed its takeover of Virgin Money, creating the UK's second-largest mortgage and savings group, and affecting one in three people.

The £2.9 billion deal, announced back in March, will see the two brands initially run as separate entities, with the Virgin Money brand phased out over six years.

It marks the biggest UK bank takeover since the 2008 financial crisis - and also a rare one, given this is a building society acquiring a listed bank. 

In an email to customers last week, Nationwide said: "Nationwide is still a mutual and owned by our members. All of the profits generated by Virgin Money will be retained for the benefit of customers and, for the first time in the UK, a full-service business bank will be part of a large mutual."

Nationwide is known for giving its profits back to its members - like the £100 payment it has made two years in a row - while Virgin Money is known for its investment service and reward points scheme.

They have both launched competitive deals in recent months, such as Nationwide's £175 switching offer, and Virgin's 10% interest current account.

We look at the acquisition in more detail. What does it mean for branches, and also access to the Financial Compensation Services Scheme (FSCS)?

What does the takeover mean for customers?

There are no immediate changes for customers of either bank. However, the Virgin Money brand will eventually be phased out.

The brand will be retained for the “medium term”, but will disappear after six years, by which point it will have been rebranded by Nationwide.

The building society has pledged to not make any material changes to Virgin Money's 7,300-strong workforce "in the near term".

In time, there could be changes to products, such as current accounts, savings accounts and cash ISAs. The future of Virgin Money’s investment service, launched last year, is also unclear.

What does it mean for Nationwide and Virgin Money branches?

The acquisition has created a banking group with 696 branches, second only to Lloyds Banking Group.

Customers will understandably be worried about branches closing, given the hundreds of branches that banks like Barclays, HSBC and NatWest have shut over the past few years. Last month, Lloyds Banking Group said it would close another 55 branches next year. 

However, Nationwide chairman Kevin Parry said last week: "I can also confirm that Virgin Money branches are now included in our Branch Promise. This means that everywhere there is a Nationwide or Virgin Money branch, we promise to still be there until at least the start of 2028."

I'm a Nationwide customer - can I do my banking in a Virgin Money branch?

Nationwide customers won't be able to use Virgin Money branches for Nationwide transactions, although the building society said that "over time we expect to broaden the range of services we offer".

Parry said in an email to Nationwide customers: "You will benefit from the Virgin Money expertise in personal lending and credit cards, as well as business banking and accounts for clubs and societies."

How does the takeover affect the FSCS protection?

Customers who have savings with both Nationwide and Virgin Money will continue to benefit from the maximum protection offered by the Financial Services Compensation Scheme (FSCS) on each of their Nationwide and Virgin Money accounts.

The FSCS compensates customers up to £85,000 if the bank or building society they're using goes bust. 

The assurance from Nationwide means that if, say, you have £70,000 with Nationwide and £80,000 in a Virgin Money account, and Nationwide went bust, you would receive all your money back, rather than having the total payout capped at £85,000. 

Why did Nationwide buy Virgin Money? 

Virgin Money struggled last year, with shares trading below levels seen in 2021, and a slump in full-year profit reported in November resulting in a series of downgrades from analysts.

In contrast, Nationwide has enjoyed an earnings boost on the back of stronger net interest margins thanks to higher interest rates. 

In a joint statement to the London Stock Exchange in March, Nationwide said the takeover would “deepen its products and services faster than could be achieved organically”. 

Virgin Money was Britain’s sixth-largest retail bank by total assets with 6.6 million customers. The acquisition will bolster Nationwide’s mortgage, savings, current account and credit card divisions, as well as broaden its business banking offering.

What’s the difference between a building society and a bank? 

The main difference between a bank and a building society is that building societies are owned and run by their members – in other words, the people who bank, save and borrow with them. 

A listed bank is floated on the stock market, so is owned by its shareholders.

Building societies sometimes offer better interest rates than banks. On the other hand, banks may be more digitally-focused and have a larger product range.

The stock market statement back in March acknowledged that Virgin Money had an ambition of becoming the UK's best digital bank.

If you’re a Nationwide customer and wondering if the Fairer Share scheme will continue, which saw eligible members receive a £100 bonus last year, chairman Kevin Parry said the deal would “put us in a stronger position to continue to provide Fairer Share Payments to eligible Nationwide members, and offer rates for mortgages and savings that are, on average, better than the market average."

Average house prices rose between December and January while annual growth is slowing, Nationwide figures have revealed.

The latest Nationwide house price index, based on the building society’s mortgage lending activity, shows average house prices rose 0.7% on a monthly basis during January to £257,656.

Average house prices remain down on a yearly basis, declining 0.2% in January, but that is an improvement on the 1.8% decline reported in December.

It comes as homebuyer confidence has been buoyed by slowing inflation and falling mortgage rates, making people more confidence about the costs of buying a property.

But Robert Gardner, chief economist at Nationwide, warns that a “rapid rebound” is unlikely, and raising a mortgage deposit remains a major issue for buyers.

Other house price indices have reported a strong start to the year, with the Rightmove house price index showing asking prices rose at their fastest rate for two years in January, while Zoopla has recorded a rise in demand.

It comes ahead of the Bank of England’s latest decision on interest rates this week.

“The precarious nature of the economy had left many prospective buyers in ‘wait and see’ mode, reluctant to buy a new home in the hopes of securing lower rates further down the line, but we are now seeing tentative signs that people are making a return to the market,” says Karen Noye, mortgage expert at Quilter.

“Should mortgage rates continue to fall then more may be lured back to the market sooner which would help to buoy prices further.”

Nicky Stevenson, managing director at estate agent group Fine & Country, said the housing market has started the year strongly.

“The housing market has been resilient during a turbulent period for the economy, and although the recent rise in inflation is a reminder that there could be more bumps ahead, there are many reasons to be positive,” she says.

“Mortgage approvals continue to rise month on month, as buyers return to the market at a steady rate. Many of them have been enticed to begin or resume their property search as a result of falling interest rates. 

“Yet the Bank of England has a big decision on its hands when it decides what will happen with the base rate.  

“Another pause in rate hikes, or even a fall, will keep encouraging buyers to the market, but a move in the opposite direction could put a bit of a damper on activity in the early part of 2024.” 

Will house prices recover in 2024?

Many analysts have predicted that prices will drop further this year as affordability pressures remain and mortgage rates are still higher than many borrowers and buyers have been used to in recent years.

“While a rapid rebound in activity or house prices in 2024 appears unlikely, the outlook is looking a little more positive,” adds Gardner.

“The most recent RICS survey suggests the decline in new buyer enquiries has halted, while there are tentative signs of a pickup in the number of properties coming onto the market.”

Much will depend on the direction of mortgage rates.

“At the end of 2023, a borrower earning the average UK income and buying a typical first-time buyer property with a 20% deposit had a monthly mortgage payment equivalent to 38% of take-home pay – well above the long run average of 30%,” says Gardner.

"If average mortgage rates were to trend down to 4%, this would ease the mortgage payments burden to 34% of take-home pay, assuming house prices and earnings are unchanged. 

“However, mortgage rates of 3% would be needed to bring this measure of affordability back towards its long run average.”

Nationwide has previously predicted that average prices will either be flat this year or drop by up to 2% depending on mortgage rates, while others such as Halifax and Zoopla have forecast declines of 2% to 4%.

Others are more positive.

Tom Bill, head of UK residential research at Knight Frank, suggests that UK house price declines are bottoming out as the economic news improves.

“Inflation has fallen faster than predicted, which means financial markets believe rates will drop by a full percentage point in 2024,” he says.

“Whatever the Bank of England decides to do, mortgage lenders set their rates based on these lower expectations, which is increasing demand. Mortgage approvals are creeping up and we expect UK house prices to rise by 3% this year. A general election later rather than sooner would allow more momentum to build.”

Average property prices ended down 1.8% during 2023 as the cost of living crisis and high mortgage rates weighed on the housing market throughout the year, the latest Nationwide House Price Index has revealed.

A housing market slowdown was expected in 2023 as high inflation combined with rising interest rates and increased mortgage pricing weighed on buyer budgets.

Nationwide’s data, based on its own mortgage lending activity, shows the average property price ended the year at £257,443.

The figure was flat on a monthly basis.

Most house price reports showed a drop in average values towards the end of 2023, while Rightmove asking price data shows sellers are listing homes for lower than usual and Zoopla has recorded high levels of discounts on property adverts as homeowners struggle to sell.

Mortgage pricing has started to drop as inflation slowed towards the end of the year, raising hopes of an interest rate cut.

But Nationwide isn’t too optimistic about a housing market recovery.

Robert Gardner, Nationwide's chief economist, said: “A rapid rebound in activity or house prices in 2024 appears unlikely. 

“While cost-of-living pressures are easing, with the rate of inflation now running below the rate of average wage growth, consumer confidence remains weak and surveyors continue to report subdued levels of new buyer enquiries. 

"Moreover, while markets are projecting that the next bank rate move will be down, there are still upward risks to interest rates. Inflation is declining, but measures of domestic price pressures remain far too high.”

How did house prices perform in 2023?

Most parts of the UK saw average prices fall during 2023, according to Nationwide.

Its data shows East Anglia was the weakest performing region with prices down 5.2% over the year.

Scotland and Northern Ireland bucked the trend, with prices up 0.5% and 4.5% respectively during 2023.

The data is based of Nationwide’s mortgage lending activity so will be reflective of the value of transactions and the typical areas in lends in.

Prices were down 1.8% annually across northern England, where Yorkshire & The Humber was the best performing part despite prices dropping by 0.5%.

Southern England saw a 3.4% year-on-year fall. There was a 2.4% annual price drop in London.

The price of semi-detached properties held up best, recording a 1.8% year-on-year fall, according to Nationwide.

Meanwhile, flats and terraced houses both saw a 2.1% annual decline, while detached properties were the weakest performing with prices down 2.7% over the year.

Karen Noye, mortgage expert at Quilter highlights that the market ended 2023 without the crash that some commentators had predicted, but risks remain.

“For some households, however, things will not be quite so rosy and there is still a risk that we could see more people forced to sell their homes if the financial strain proves too much to bear,” she says.

“The Bank of England opted to hold interest rates at its latest monetary policy decision which will heap pressure onto households next year as more fixed rate deals come to an end, and we could see potential buyers hold off in the hopes of securing cheaper deals in the future. House prices have held up relatively well this year, but we are not yet completely out of the woods.”

What will happen to house prices in 2024?

A further slowdown in prices is expected this year.

Nationwide has forecast that prices will either be flat or will drop by 2% during 2024.

“It appears likely that a combination of solid income growth, together with modestly lower house prices and mortgage rates, will gradually improve affordability over time, with housing market activity remaining fairly subdued in the interim,” adds Gardner.

“If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline or remain broadly flat.”

Zoopla is also predicting a 2% decline but Halifax has predicted a more pessimistic fall of between 2% and 4% in 2024 due to economic market conditions and "affordability pressures."

But Tom Bill, head of residential research at property brand Knight Frank is more hopeful, especially with a general election on the horizon.

"There is growing evidence that the worst of this house price correction is behind us," he says.

"As inflation falls, downwards pressure on mortgage rates means demand should strengthen and transaction numbers will move closer to their longer-term norms in 2024. 

"A tight jobs market, the availability of longer mortgages, the fact more homes are owned outright than with a mortgage and the absence of forced selling due to tougher mortgage stress-testing rules since the global financial crisis have all helped avoid steeper price declines as interest rates normalise.

"Pre-election giveaways may boost sentiment further next year although the UK housing market is likely to stutter ahead of the vote itself.”

Nationwide Building Society has launched an easy-access account that aims to help young people develop a savings habit.

Banks and building societies have been improving their savings deals in recent months amid Bank of England interest rate rises.

Children’s savings accounts have in the past paid higher interest than on the mainstream market, particularly for regular saver accounts, as there were usually limits on how much you could contribute.

There hasn’t been as much movement for children’s savings accounts in recent months though.

Nationwide’s new FlexOne Saver account aims to address this and get young people more engaged in their finances by offering 5% interest on balances up to £5,000.

In addition, customers with Nationwide’s off-sale FlexOne Regular Saver account, which allows deposits of up to £100 a month, will also see their rate increase to 5%.

We explain how the FlexOne Saver account works.

Who can open the FlexOne Saver?

The FlexOne Saver is open to customers aged 11 to 17 but you need to have opened a FlexOne current account first.

The current account can be opened in branch for those aged between 11 and 17 or through internet or mobile banking for those between age 13 and 17.

A parent or guardian will need to help open the account in branch if their child is under age 13.

It can be managed through internet or mobile banking and in-branch and there are no withdrawal limits.

The account is fee-free and comes with a choice of either a cash card or Visa debit card. It also pays interest of 2% on balances up to £1,000, separately to the FlexOne Saver.

Up to £5,000 can be paid into the FlexOne Saver but this must be done within 28 days or the account will close.

Based on an interest rate of 5%, a child’s £1,000 deposit would grow to £1,050.00 after a year.

The rate is variable though so it could change.

Once the account holder turns 23, the FlexOne Saver will change to a different instant access savings product with a lower interest rate.

How does the FlexOne Saver compare with the rest of the market?

A 5% rate puts Nationwide's children’s savings account among the best buys for young people.

Coventry Building Society offers a slightly higher easy-access rate of 5.25% with a £5,000 limit but it can be opened from age 7 to 17.

You don’t need to open a current account and it switches to an easy access saver from age 18.

Kent Reliance pays a rate of 5.58% and up to £1m can be saved but you have to be willing to lock your child’s money up for a year.

Putting money into a children’s savings account can be an effective way to build a nest-egg for them while also providing young people with financial independence and the opportunity to learn about money management.

But there are other accounts on the mainstream market where you could earn higher rates on behalf of your child if they don’t have a current account or you want more control of the money.

Nationwide currently has a regular saver that pays 8% to its current account holders, with a £200 monthly contribution limit, while Metro Bank has a market-leading easy-access account at 5.22%.

NatWest-owned Ulster Bank’s top 5.2% easy access saver account has remained on the market even as other rates have dropped.

Ulster Bank boosted the rate on its easy-access account back in October when competition in the savings market hit its peak. Lenders have been dropping their rates since November, but Ulster Bank’s deal is still available.

At the time, Ulster Bank upped its rate from 5% to 5.2% on its easy access account, and the saver went head to head with the likes of NS&I’s 6.2% one-year fixed bond, which was pulled after being on the market for only around five weeks. 

Despite a short life span on the best savings accounts plus falling savings rates, more than 1,000 accounts including this 5.2% saver by Ulster Bank now beat inflation. 

Ulster Bank’s savings account is also just below the base rate of 5.25%, which the Bank of England froze for the third time in December. 

This is among the top easy access accounts and is an attractive product for putting money aside, especially if you want somewhere for your emergency or short-term savings where you can earn a decent interest rate.

There are some restrictions though. We explain how Ulster Bank’s Loyalty Saver rate works.

Who can get Ulster Bank’s 5.2% Loyalty Saver rate?

Ulster Bank is based in Northern Ireland but this account is also open to residents across the UK over age 16.

You have to apply digitally and have a mobile number and email address to open an account but if you live in Northern Ireland you can get help in a branch. Otherwise, you will need to apply online through the Ulster Bank website.

It is open to new and existing Ulster Bank customers. If you already bank with Ulster Bank, you can use its Round Ups savings feature from the current account to put the extra money aside. 

You need at least £5,000 to get the 5.2% rate and anything below that will earn 2.25%. So, this is only a best-buy if you have at least £5,000 to save.

How does Ulster Bank’s Loyalty Saver work?

The Loyalty Saver account is opened and run completely online, so you need to be tech-savvy.

You will need to register for Ulster Bank’s internet banking services to access and manage your account.

It can be funded from any current or savings account in your name.

There are no limits on withdrawals and if you live in Northern Ireland you can also withdraw money in branch in addition to online and mobile.

Interest is paid annually, so you would earn £260 on a £5,000 deposit after 12 months. If you have less to save, take a look at Satander-owned Cahoot - which also pays 5.2% and you only need £1 to get started. But, you can only save up to £3,000.  

How does Ulster Bank’s Loyalty Saver compare with the rest of the market?

As with most easy-access deals, the 5.2% rate is variable so could change at any time. This means Ulster Bank could decide to reduce the rate once it has enough demand or it could even go up again if interest rates rise further. Savers will get 60 days’ notice of any changes.

You only get the 5.2% rate once you have £5,000 in the account so it may not be best for those with small savings pots. But if you have built up a big emergency stash or have large sums to set aside, this product could be attractive and has the added benefit of unlimited withdrawals if you require regular access.

But, Ulster Bank’s easy-access account is not the best rate on the market. 

Currently, Metro Bank is at the top of our best buy table, with its 5.22% Instant Access account which can be opened with £500. 

Yet, a lot of top easy-access accounts come with hidden restrictions, so the rate offered might put the account at the top of our best buy table, but it may not be a feasible option for many. 

For example, Santander’s Edge Saver is offering a whopping 7%, but it is only available to Santander edge customers, and the 7% rate includes a bonus rate of 2.5% which could be dropped at anytime. 

As mentioned, Cahoot’s Sunny Day saver also offers 5.2% like Ulster Bank, but you can only save up to £3,000 a year. 

Better savings rates are on offer if you are willing to lock your money away for a short period. You can earn up to 5.5% if you fix your savings for a year with Al Rayan Bank.  

Are easy access savings rates falling? 

Lenders have been dropping the rates on the best easy-access savings accounts, though they have been a lot more steady than fixed savings, which has seen daily drops since November. 

So far, there has been no rate falls on easy-access accounts in the new year. But in December, MoneyWeek saw four easy access savings deals pulled and three accounts fall in rate. 

Plus, experts believe we have hit the peak of interest rate hikes as inflation has lowered (but not reached the 2% target), and that the base rate could fall which would push savings rates down further. 

Sarah Coles at Hargreaves Lansdown warns: “At the moment the market is pricing in for the Bank of England to cut rates as early as May, and while that consensus holds, we can expect savings rates to keep falling.”

Packaged bank accounts are current accounts that charge a monthly fee in exchange for perks such as insurance benefits, car breakdown cover, cashback, higher savings rates, and monthly freebies.

Similar to a current account, you can receive or send money, make payments and pay your bills. The difference here is that you’ll be charged between £10 and £45 a month, depending on the type of account you choose, so it’s worth shopping around for the deal that best matches your needs.

The best packaged bank accounts

We’ve rounded up some of the top packaged bank accounts on the market right now.

We take a further look at the accounts below.

What to consider before opening a packaged bank account

Before opening a packaged bank account, make sure you consider all the elements to ensure the perks outweigh the costs.

• Take a close look at any insurance policies being offered. If travel insurance is included, make sure that you’re eligible, if your travel insurance covers any activities you intend on doing, and that the policy covers countries you plan on visiting.
• If you have any pre-existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted for the account, but it’s a better outcome than not disclosing a condition, only for something to happen down the line and find out you are not covered. We look at how to get travel insurance for over 70s in a separate guide.

Should I get a packaged bank account?

A packaged bank account might be a good option for you if:

You will use the perks: if an account comes with travel insurance, do you go abroad enough to make it worthwhile?

You don’t already have the benefits: Make sure you don’t already have the insurance coverage elsewhere. For example, have you got breakdown cover included in your car finance package or car insurance?

You will actually save money: if you were to pay for the service separately, it could work out cheaper than the account fees. Double-check before you open an account.

The account suits your needs: Don’t forget to check that the bank account is suitable too. Does it have the overdraft you need? If you need a branch, is there one local to you?

Are packaged bank accounts good value?

Working out if a packaged bank account offers value for money is straightforward: take the monthly charge and multiply it by 12 to get the annual cost. Then shop around to see what the benefits would cost you separately.

For instance, a Santander Edge Explorer account may be worth getting with the bank switching bonus, but it may not end up being worth the cost later. Make sure you repeat those processes each year rather than sticking with a packaged account for years that may no longer offer you good value.

This deal is no longer available. Please see our best offers for switching banks guide for up-to-date deals. 

Nationwide Building Society has brought back its highly anticipated bank switching bonus, giving you £200, plus a market leading 8% regular saver - meaning switchers could earn up to £377 by moving banks. 

Nationwide’s bank switching incentive is one of the highest current account switching bonuses on the market today and if you’re looking for the best savings accounts, then Nationwide’s 8% rate is now the best rate for regular savings accounts available right now.

The last time the high street giant offered a £200 switching incentive was in October 2022 - but these deals are often pulled fast when there is significant demand.

Nationwide's deal follows a string of other banks also launching switching incentives this month, which include TSB and Lloyds. TSB is offering switchers £150 plus up to £60 cashback over six months (a total of £210), and you can bag £175 by switching to a Lloyds Club current account, but the account comes with fees starting from £3.

But Nationwide’s switch £200 deal could prove popular as the bank has been scoring points with savers over the last year with incentives like 5% cashback on grocery shopping and the £100 cash boost it gave to customers as part of a profit sharing scheme, dubbed the Nationwide Fairer Share Scheme; and while not all customers benefited on the last round, Nationwide told MoneyWeek that there may be similar payouts in the future to include a wider range of customers as part of the scheme.

The building society has also consistently increased rates on savings products. 

Tom Riley, director of retail products at Nationwide, said: “We want to give people every reason to join and stay with Nationwide. We’re also rewarding our current account customers with a market-leading rate of 8% AER on our Flex Regular Saver.”

Here are all the details on Nationwide's new switching deal, the  8% regular savings account and how to earn £377 in the first year of opening the account.

Nationwide’s £200 switching deal

You can bag £200 free cash when you switch to either a Nationwide FlexAccount, Nationwide FlexDirect account or a Nationwide FlexPlus account. 

To qualify for the £200, you will need to do the following:

• Switch to a Nationwide current account using the Current Account Switch Service (CASS). The switch means you have to close your old current account and all payments will be transferred to your Nationwide account, including standing orders and direct debits. This is usually done automatically via the switch service within 7 days.
• Have a minimum of two active direct debits coming out of your Nationwide account.
• You can open a Nationwide current account in branch, online on the Nationwide website or via its mobile banking app. When you apply for a new account, request a switch as part of your application. 

Who can get the Nationwide switch bonus? 

If you have already taken advantage of a Nationwide switching incentive with a sole or joint account after 18 August 2021, you will not qualify for this offer.  

• You will qualify if you have a joint account, but want to open a new sole account, or if you already have a sole account and you open a new joint account.
• If you’re an existing Nationwide current account customer who also holds a current account with a different bank provider, you can switch too. To do this, switch your current account with a different provider to your existing Nationwide current account via online banking. You will need to complete the switch within 60 days of it being requested. 

How does Nationwide’s 8% regular saver account work? 

When you open a Nationwide current account, you also get access to the linked, market-leading 8% AER regular savings account.

The 8% rate is fixed for 12 months, after which the account will turn into an instant access account.

• You must deposit money within the first 28 days of opening the account. This can be as little as 1p. 
• You can save up to £200 per month. There is no monthly minimum deposit. 
• The account permits up to three withdrawals. On your fourth withdrawal, the rate on the account will drop to 2.15% AER variable.
• You are eligible to open the regular saver if you hold one of the following current accounts: FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne.
• You must be aged at least 16 years or older to open the saver.

How can I earn £337 by moving to Nationwide? 

Providing you qualify for the switch bonus and maximise the £200 regular saver allowance, you could actually bag a total of £337 by moving to Nationwide in the first year of opening the account depending on which current account you pick.

If you save £200 in the saver on the first day of each month, you will earn £104 over the year. 

But, if you open the Nationwide FlexDirect account, you can also earn 5% AER on bank balances up to £1,500, fixed for 12 months. 

To qualify, you will need to pay in at least £1,000 per month. After 12 months the rate will drop to 1% AER. 

If you take advantage of Nationwide’s switching offer (£200), save £200 per month in the 8% regular saver and keep a balance of £1,500 in the Nationwide FlexDirect account for one year, you could earn £377. 

Nationwide Building Society is set to hike the interest rates on a number of savings products for the fifth time this year following the latest Bank of England base rate rise, which hit 5.25% this month.

Nationwide will up the rates on both on and off sale products by up to 0.75% from 16 August and 1 September. 

Tom Riley, director of retail products at Nationwide, said: “As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on our most popular variable rate accounts. As a result of these changes, the vast majority of savers will see an increase in their rate.”

As well as consistently increasing its rates this year, the bank has also scored points with customers after it launched a cashback scheme earlier this year, giving customers up to 5% back for their grocery shopping for three months to help with the cost of living pressures.

It has also paid out £100 bonus to customers with a current account and a savings account or mortgage product as part of a profit share scheme.

Previously Nationwide has also been a table topper for the best bank switching offers, giving customers a handsome £200 incentive to switch to its current account.

But how do the new savings rates compare? We have all the details.

Nationwide’s new savings rates

Nationwide has boosted the rate on a number of products. This includes:

The rate you receive on the Instant Access Account will vary depending on your balance.

• Earn 2.3% on balances of up to £9,999.99
• Earn 2.35% on balances of £10,000 to £49,999.99
• Earn  2.4% on balances of £50,000 plus

When will the Nationwide’s new rates start?

The one-year Triple Access Online Saver and the Flex Instant Saver 2 rate changes will come into effect on 16 August. 

The new rates on ISA products - the Loyalty Saver plus the Instant Access Saver - will come into effect from 1 September. 

How does Nationwide compare to other savings accounts?

According to MoneyFacts, the average one-year fixed ISA is offering 5% since the base rate hiked to 5.25%. 

Considering the Nationwide One Year Triple Access ISA gives ease of three penalty-free withdrawals, its rate hike to 4.25% sits in a good place amongst its competitors, especially for a large provider. 

Looking at easy-access savings accounts, Shawbrook Bank beats Nationwide’s new rate offering with a top rate of 4.63% interest and unlimited withdrawals. 

The Chip Instant Access Account also offers an attractive rate of 4.51% which beats Nationwide, and you can open the saver with just £1. 

Nationwide’s One Year Triple Access Online Saver sits closest to these rates, offering 4.25% from 6 August. But it is limited to three withdrawals per year. 

Join us at the MoneyWeek Summit on 29.09.2023 at etc.venues St Paul's, London.

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House prices in the UK slumped to -3.8% in July - the greatest fall since July 2009 - as high borrowing costs continue to deter prospective buyers.

The price of a typical home is now 4.5% below the August 2022 peak.

In July alone, house prices fell by 0.2% on a seasonally adjusted basis, with the average home now worth £260,828, down from £262,239.

Nationwide said an average first-time buyer with a 20% deposit would have to fork out 43% of their take-home pay to meet mortgage repayments at their current rates. Only a year ago, a mortgage would have taken up 32% of a buyer’s pay packet.

The lender’s analysis also shows a 10% deposit is now equivalent to 55% of gross annual average income.

“This challenging affordability picture helps to explain why housing market activity has been subdued in recent months,” said Robert Gardner, chief economist at Nationwide. 

“There were 86,000 completed housing transactions in June, 15% below the levels prevailing the same time last year and around 10% below pre-pandemic levels,” he said.

Meanwhile, separate data from the Bank of England (BoE) revealed an uptick in the number of mortgage approvals - now at the highest level since October last year. Suggesting buyers are looking to lock-in mortgage deals earlier ahead of a possible rate rise later this month.

Is now a good time to buy a house?

With a mixed picture emerging from different industry data sources and house price indices, buyers are tentatively waiting in the hope of more favourable economic conditions, said Myron Jobson, senior personal finance analyst at interactive investor.

He added, “Both buyers and sellers will need to thread carefully in the current uncertain period in the housing market. Sellers may have to adjust to the new status quo in the housing market by being flexible on price given the growing challenges posed by high mortgage rates and inflation. Buyers may be forced to adjust their criteria or wait even longer until they can make the numbers work to get on or move up the property ladder.”

Is the housing market at a turning point?

June saw a 6% monthly increase in seasonally adjusted residential transactions and a 5% increase in seasonally adjusted non-residential transactions relative to May, according to HMRC data, but as Nationwide’s findings show, high borrowing costs are weighing on house prices.

June’s HMRC residential market data showed the volume of transactions was 15% lower than in June 2022.

A 6% rise in transactions in June compared to May demonstrates the “remarkable resilience in demand for homes in the face of an acute affordability squeeze,” according to Jobson.

But this does not “necessarily suggest that the property market is turning,” he adds. On a yearly basis, HMRC’s data shows a 15% fall in transactions carried out in June.

Higher mortgage rates have made home ownership and remortgaging less affordable for many. 

“As a result, many potential buyers have placed their plans to buy a home on the backburner until such a time when they can make the numbers work - or decide not to enter the market at all due to the higher expenses. But there is still a cohort of buyers who are able to move up the property ladder despite the harsh market conditions,” Jobson says.

Currently, the average two-year fixed mortgage has eased to 6.81% according to Moneyfacts, while five-year deals have dropped to 6.34%.

Alice Hayne, personal finance analyst at Bestinvest notes, “There may be slightly better mortgage deals on the market than a few weeks ago, but first-time buyers and those refinancing also have difficult decisions around whether to secure a two-year or five-year mortgage and whether to choose a fixed or variable product.”

“While two-year fixes are more expensive than their five-year equivalent, borrowers may be anxious not to lock in a costly long-term deal if rates are about to improve. Many are now taking a gamble on tracker mortgages, even though interest rates are tipped to go higher, in the hope that rates retreat next year,” she says.

What would a rate rise mean for the housing market?

All eyes will be on the BoE and whether it decides to up rates yet again, but a lower-than-expected peak rate of inflation could “be enough to keep the cost of fixed-rate deals on the downward trend, which could help elevated property transactions – but there are no guarantees,” said Jobson.

Those on a fixed-rate mortgages deals that aren’t coming to an end in the near future will be spared from the upcoming rise, but 2.2 million homeowners on variable mortgage rates will “continue to feel the full brunt of the expected increase in interest rates,” Jobson said.

“They are likely to face higher costs for some time to come.”

Variable and tracker mortgages are now more than twice as popular compared to just over six months ago, according to analysis, as higher borrowing costs have switched up borrower behaviour.

Borrowers are increasingly interested in shorter-term fixed deals – such as two year fixes instead of five year fixes – as mortgage rates have risen sharply in recent weeks, search activity on the Moneyfacts website found.

Yet at the same time, more people are thinking about taking a punt on the future path of interest rates with a variable or tracker rate mortgage, in the hope money markets have overblown expectations of rate rises and the Bank of England’s Monetary Policy Committee starts to cut the base rate again.

Adam French, head of consumer finance at Moneyfacts, said: “The economic consequences of the conflict in the Middle East have turned interest rate expectations on their head, pushing up borrowing costs and changing borrower behaviour.

“With fixed mortgage rates rising sharply in a short space of time, more borrowers appear willing to gamble on rates falling sooner than markets currently expect.”

How mortgage rates have risen

Home buyers would have been hoping for a fall in mortgage costs in 2026, but ongoing tensions in the Middle East since the end of February have put pricing into flux.

Borrowers were starting to benefit from falling rates at the start of the year, with interest rates steadily falling as inflation slowed to 3%, but mortgage pricing surged in March following the US-Israeli invasion of Iran.

Peace talks in recent weeks have led to the market cooling somewhat, however rates are still significantly higher than prior to the conflict.

For example, the average two year fixed rate mortgage was 4.85% on 1 February. By 15 May that had risen to 5.75% – an increase of 90 basis points.

For a five year fix, the rise has not been quite as big. On 1 February the average rate was 4.94%. As of 15 May it was 5.67% – a rise of 73 basis points.

By comparison, on 1 February, prior to the US-Israeli attack on Iran and the surrounding Middle East, the average two year variable rate mortgage was 4.41%. On 15 May it was 4.56%, an increase of just 15 basis points.

Interest in variable and tracker mortgages increases

Variable and tracker mortgages remain a minority choice. But the increase in interest in these mortgages points to a view among borrowers that rates could ease in the near term.

“Tracker and discounted variable mortgages can appear more attractive when fixed rates rise quickly, as they typically start lower,” said French.

However, he pointed out, they also pass much more of the risk of future base rate or standard variable rate changes directly onto the borrower, rather than the lender taking on that risk through a fixed-rate product.

Borrowers also seem keen on hedging their bets with shorter-term fixed options. With five-year fixes rising by more than 70 basis points since February, according to Moneyfacts data, many borrowers appear to be favouring two-year deals in the hope the current spike in rates proves temporary.

What is driving mortgage rates?

An interest rate cut in December had helped mortgage pricing fall below 5% and even below 4% in some cases, prompting a drop in mortgage rates in the build up to the new year, as the cost of borrowing was expected to continue falling.

At the start of the year, the Bank of England’s (BoE) Monetary Policy Committee (MPC) had been expected to lower interest rates twice in 2026, but instead it has held rates at its last three meetings in February, March and April.

The base rate has stayed at 3.75% since the start of 2026 and swap rates, which help determine the cost of fixed-rate mortgages, surged after the outbreak of the conflict in Iran. This caused mortgage rates to rise rapidly.

The rate of increase in swap rates has slowed in recent weeks, although they remain significantly higher than prior to tensions in the Middle East.

We reveal how to get the best deal when remortgaging.

What are swap rates?

Swap rates are agreed between financial institutions, like a lender and an insurance company, and refer to the rate of interest one agrees to pay the other in return for funds over a set period of time.

Ultimately, they reflect the wholesale cost of funding for banks that influences how they price credit such as loans and mortgages.

This means that if swap rates go higher, it’s more expensive for the lender to borrow and it will have to hike rates on its mortgage products.

Swap rates are based on what markets believe will happen to interest rates and inflation in the future.

With the ongoing conflict in Iran stoking fears that inflation could spike globally, leading to higher interest rates, this has seen swap rates rise.

In turn, lenders have been pushing up their mortgage rates as it becomes more expensive for them to borrow money.

What is the forecast for interest rates?

What happens with mortgage rates depends on the direction of interest rates. At the start of the year, the BoE had been expected to cut interest rates twice in 2026. However, the US-Israeli attack on Iran on 28 February scuppered these plans.

In its April meeting, the MPC again voted to maintain interest rates at 3.75%. Huw Pill, the Bank's chief economist, was the only member of the Bank's nine-member Monetary Policy Committee to vote for a rate rise.

Predictions about the future direction of interest rates will drive mortgage rates. And what happens with interest rates will largely depend on inflation – the cost of goods and services, which are heavily influenced by energy prices.

At its April meeting, the MPC again pointed to how the war in the Middle East is disrupting the supply of energy, raising its price and pushing up households’ motor fuel costs; “we expect utility bills to increase as well”, it said.

Inflation increased by 3.3% in the 12 months to March – higher than the MPC predicted in February, before the start of the war, and largely driven by increases in transportation costs, especially motor fuels. “It is likely that it will be higher later this year,” the Committee said.

It also expects energy price rises to have knock-on effects. As businesses’ bills go up, it is likely they will increase their own prices to cover the cost and workers may ask for higher wages as their bills also rise.

“The impact on the economy and inflation will depend on how much energy prices go up and how long they stay raised,” the MPC said.

Given the context, some economists now believe the MPC is likely to hold rates in 2026, and perhaps even raise them.

Advisory firm Oxford Economics believes the MPC will hold rates where they are until 2027.

Meanwhile, Pantheon Macroeconomics expects interest rates to be hiked twice in 2026, followed by three cuts in 2027.

The Bank of England appeared to sound its concerns over future interest rates in its most recent Monetary Policy Summary report in April.

In it were three scenarios that could occur due to energy shocks caused by the Iran conflict, with the worst-case scenario suggesting inflation will peak at 6.2% in early 2027, in which case interest rates could rise as high as 5.25%.

However, on 18 May, the International Monetary Fund (IMF) said the Bank of England will not need to raise interest rates this year to combat the effects of rising energy costs.

The IMF has assessed UK monetary policy is already "sufficiently restrictive to ensure that second-round effects from higher energy prices to inflation are contained”, it said in its latest update on the state of the UK economy.

The report also upgraded its forecast for UK economic growth this year to 1%, up from the 0.8% figure it had expected only last month.

Should you fix your mortgage?

If you are one of the estimated 1.8 million people on a fixed-rate mortgage that is expiring this year, according to UK Finance, it could be a good idea to hedge your bets and fix now.

Fixed rates can offer you certainty over what you’ll pay in interest over the course of the deal, even if rates do rise.

Plus, under the Financial Conduct Authority’s (FCA) mortgage charter, you can lock in a new fixed-rate deal six months before your current one is due to end and then shift to another, more competitive one, later on.

Mendes, from John Charcol, said: “In this kind of market, the better approach is often to lock in an affordable option and then switch if pricing improves before completion.”

What about variable mortgage rates?

Standard Variable Rate mortgages – the ones borrowers tend to roll onto once their fixed rate deal comes to an end – are still an expensive option. The average Standard Variable Rate (SVR) was 7.13% as of 1 May, according to Moneyfacts.

Those on a high SVR would be wise to switch onto a fixed rate now. Even if fixed rates fall further, the money saved from getting rid of an expensive SVR earlier could make it worth it.

You could also opt for a tracker mortgage which more directly follows the BoE base rate.

David Hollingworth, associate director at mortgage broker L&C Mortgages, said: “Anyone that is sitting on a standard variable rate because they are hoping for more drops in fixed deals should consider whether a tracker would be a better option.

“The SVR is likely to be substantially higher and even if fixed rates do reduce over time, each month on SVR could be costing a lot more.”

What about buy-to-let mortgage rates?

Buy-to-let fixed mortgage rates have soared due to unrest in the Middle East.

The average two-year rate was at 4.65% on 2 March, but sits at 5.35% as of 18 May, according to Moneyfacts. The five-year rate was at 5.04% on 2 March, but 5.66% as of 18 May.

Overall buy-to-let product choice has fallen sharply since the start of the conflict in the Middle East too. On March 2, there were 5,696 buy-to-let mortgage products available but just 5,052 on 18 May, according to Moneyfacts.

Despite recent buy-to-let mortgage rate increases, they are still considered competitive compared to how high they have been over the past few years – they were pushing 7% in the summer of 2023.

Landlords will have been hoping for a fall in mortgage rates later this year to help offset the 5% stamp duty surcharge, less generous mortgage interest tax relief and higher income tax charges on property introduced in the 2025 Autumn Budget and coming into effect in April 2027.

Landlords have also had to ensure they meet the new Renters’ Rights Act rules, which came into force on 1 May. In addition, they will be expected to invest up to £10,000 to reach an EPC rating of C by October 2030. Growing costs could dampen the profitability of buy-to-let.

What mortgage support is available?

Mortgage rates are much higher than when many people would have last remortgaged. Some homeowners will be coming off rates as low as 1% or 2%.

If you’re struggling to make your mortgage repayments, the good news is that lenders representing 90% of the mortgage market have signed up to the government’s mortgage charter. They include the big banks like Halifax, HSBC and Santander and building societies like Nationwide, Leeds and Skipton.

The charter is a series of support measures intended to help those in difficulty. Borrowers will be able to make a temporary change to their mortgage for six months to give them some breathing space, such as switching to interest-only payments or extending their mortgage term to reduce their monthly payments. Customers have the option to revert to their original term within six months by contacting their lender.

About 1.7 million mortgages have benefitted from the mortgage charter since it was introduced in June 2023, according to the City watchdog.

Meanwhile, there is a 12-month delay before repossession proceedings can start against those who have missed payments. Regardless of whether your lender has signed up to the charter, all lenders also have a range of measures in place for customers experiencing difficulties.

Should I overpay my mortgage?

If you’ve got some spare cash and you're on a low rate, overpaying your mortgage can be a good way to protect yourself before your mortgage deal expires and you have to remortgage at a higher rate.

Our mortgage overpayment calculator shows how your monthly repayments will change and help you decide if it is worth it.

Recent research from finance broker Clifton Private Finance found someone on a £250,000 mortgage paying it off over 25 years at 5% could save £40,000 in interest and shave four years off the term by overpaying by just £150 a month.

“You can’t control the market, but you can control how you respond to it. Rates change, lenders adjust their products, and the wider environment is always shifting,” said George Abouzolof, senior mortgage advisor at Clifton.

“But choosing whether to overpay your mortgage, and by how much, is entirely within your control. It’s one of the few levers homeowners can pull to improve their long-term financial position.”

If you’re unhappy with your current account, switching banks by taking advantage of the best bank switching offers can be a good way to move your money and get ‘free’ cash in the process.

More than a million bank account switches took place last year, according to the Current Account Switch Service (CASS). Nationwide recorded the largest net gain, attracting 41,450 customers. Digital bank Monzo ranked second with 9,934 switches, followed by NatWest with 8,731. We delve into the most and least popular banks among customers in a separate piece.

Kalpana Fitzpatrick, editor of MoneyWeek.com, says: “Bank switching deals are a great incentive for anyone looking to move banks. But, before you switch, make sure the bank you are moving to offers what you need – don’t switch just because there is a cash bonus on offer.”

There are currently six bank switching offers on the market, with incentives of up to £250 in cash, as much as £750 in cashback, or a signature experience worth £600.

We round up the deals available now and explain how to qualify for the bonus.

The best bank switching offers

NatWest – get up to £250

NatWest is offering £250 to new and existing customers who didn’t have a NatWest current or savings account as of 10 March 2026. To qualify for the switching bonus, you must:

• Open a NatWest Premier account and complete a switch using CASS
• Pay in £5,000 within 60 days (either as a single deposit or in multiple instalments)
• Log in to the NatWest mobile app

The £250 will be credited automatically within 30 days of meeting the requirements.

Customers can also earn up to £9 a month through NatWest’s rewards programme. This includes setting up two Direct Debits, 1% cashback at select retailers, and £1 per month for logging in to the app. Once the balance reaches £5, you can redeem the rewards for cash or vouchers.

Get up to £750 in savings interest

Alongside the switching offer, NatWest is offering a savings bonus worth up to £750 to customers who deposit £100,000 into its Flexible Saver account. This means high earners could get up to £1,000 from NatWest.

Here’s how to qualify:

• Deposit £100,000 into the account
• Maintain the balance for at least 30 consecutive days.

You don’t need to wait to receive the £250 switching bonus before opening the Flexible Saver.

In order to be eligible for a NatWest Premier account, you must meet at least one of these criteria:

• Have an income of at least £100,000 or £120,000 in joint income
• At least £100,000 held in savings or investments with NatWest
• A NatWest mortgage of at least £500,000

However, it’s worth noting that NatWest Group is closing 18 more bank branches by 2027, so if your local branch is shutting down and you prefer in-person banking, it may not be suitable for you to switch.

HSBC – get £220

HSBC’s switching offer is offering new customers £220 for switching to an HSBC UK bank account. Here’s how to qualify:

• Complete a full switch with CASS
• Transfer two direct debits
• Deposit at least £2,000
• Spend £500 on your HSBC debit card

Once you meet the requirements, you will receive the bonus within 60 days.

This offer isn’t available for existing HSBC or First Direct customers, or those who have held an account with either of the banks since January 2023. You will need to apply for the switch on the HSBC app.

Barclays – get £200

Barclays is offering £200 to new customers who open a current account with the bank. To qualify, you need to follow these steps:

• Open a Barclays Bank Account through the Barclays app.
• Complete a full switch, including at least two direct debits.
• Deposit a minimum of £2,000 within 30 days of opening the account.

Once you’ve followed these steps, you’ll receive the £200 in your new account within 28 working days. The switching offer ends on 27 August 2026.

Get a premier experience worth up to £600

Barclays is offering an experience-led reward worth up to £600 for customers who switch to its Premier account. You will need to follow these steps to qualify:

• Open a Premier account using the Barclays app
• Complete a full switch, including moving two direct debits
• Pay in at least £4,000 within 30 days

After you open the account, you can choose from four types of high-end experiences:

• Dining: Restaurant experiences at select UK venues, including the Gordon Ramsay Restaurants. Specially curated menus for Barclays customers, wine pairings, welcome drinks and £50 Uber credit.
• Stay: Luxury UK hotel stays with select partners such as De Vere, Dakota Hotels and Harbour Hotels, including champagne on arrival, a three-course meal, spa access and complimentary breakfast.
• Live events: Tickets to stadium concerts at Wembley, sporting fixtures like England cricket at Headingley and exclusive matchday perks.
• Family: Annual passes to Merlin Entertainments’ attractions, tickets, food and drinks at Cineworld and Picturehouse Cinemas.

Moreover, with a Barclays Premier account, you can get free Apple TV, cashback on spending, improved savings rates, rewards like free drinks from GAIL’s, and 5% cashback at Tesco fuel.

However, in order to qualify for the Premier account, you will need:

• An annual income of £75,000
• At least £100,000 in savings or investments with Barclays

You will not be eligible for the switching offer if you opened an account with Barclays before 9 June 2026.

First Direct – get up to £200

First Direct’s switching bonus is offering new customers £200 if they open an account before 15 July. To qualify for the bonus, you will have to complete the following steps within 45 days:

• Deposit a minimum of £1,000 (in single or multiple deposits) in your account.
• Switch at least two direct debits or standing orders into your First Direct account.
• Register and log on to digital banking.
• Use your debit card at least five times.

Once all the steps are completed successfully, the £200 bonus will be paid to your account on the 20th of the following month.

You are not eligible if you've held an HSBC current account on or after 1 January 2018.

The account gives you access to its 7% regular saver. Plus, there are no fees when spending abroad, and the current account comes with a £250 interest-free overdraft, although this depends on your credit history.

Santander – get £180

Santander’s £180 switching deal is for both new and existing customers. To qualify, you must do the following:

• Complete a full switch using the CASS within 60 days of opening your account
• Pay £1,500 into the account either as a one-off payment or in instalments.
• Set up two direct debits in the eligible account.

Eligible accounts include Santander Everyday, Edge (£3 monthly fee), Edge Up (£5 monthly fee) and Edge Explorer (£17 monthly fee).

The bonus will be paid within 90 days of initiating the switch.

Existing customers can get the bonus by transferring £1,500 from an account held with a different provider to their new Santander account using the bank’s switch service. Plus, they will need to set up two direct debits.

Santander is closing 44 bank branches this year, so if your local branch is closing and you prefer in-person banking, it may not be suitable for you to switch to Santander.

Nationwide – get £175

Nationwide is offering a £175 bonus to new customers. You can get the cash by switching a non-Nationwide current account into a new or existing FlexPlus, FlexDirect or FlexAccount.

To qualify, you must complete the following:

• Use the CASS to complete a full switch within 28 days.
• Pay in at least £1,000 and make at least one debit card transaction within 31 days.
• Switch over a minimum of two Direct Debits.

You’ll receive the bonus within ten days of meeting all the requirements.

Alongside the new switching offer, Nationwide has also launched a 5% Member Exclusive Bond and has started paying its £100 Fairer Share bonus to over four million members for the fourth consecutive year.

How to switch bank accounts

The Current Account Switch Service makes it quick and painless to switch banks, as the banks are required to do the legwork and complete the switch within seven working days. All you do is open a new current account and request a switch via CASS. The service will then close your old account and move all your money, direct debits and standing orders to your new account within seven days.

Plus, for three years, any money that is paid into your old bank account or tries to leave that account will automatically be put into your new account. Still, it is important to remember that while these offers might look attractive, you should only switch to an account that suits your needs, as some accounts may also charge a monthly fee.

You should always check the terms and conditions to make sure you qualify for the bonus before you start the switch process. If you're applying for any credit in the next six months, such as a mortgage, it's also worth being aware that switching bank accounts could affect your credit score.

UK house prices unexpectedly bounced back in February, with the latest Halifax data showing a 1.1% increase in February, following a period of flat growth of three months previously.

The price of a typical UK property now stands at £285,476, compared to £282,360 in January.

The February house price rise indicates consumer confidence is returning and potentially a u-turn of house prices declining. Nationwide’s data last month also indicated house prices were not falling as fast as expected.

The annual rate of UK house price growth remained at 2.1% for the third month, but it slowed throughout all nations and regions in February.

The property market has been cooling down following three years of booming growth as buyers retreat from the market due to increased mortgage rates and cost of living pressures.

But mortgage rates have been falling as of late. Two- and five-year fixed rate mortgages sit between 4 to 5%, having climbed down from their September peak of 6.65% following the mini-Budget chaos.

But, they remain high compared to the end of 2021, when lenders were offering rates of around 2%.

“Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December,” said Kim Kinnaird, director at Halifax Mortgages.

“Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.”

How did house prices change per region?

The annual rate of growth slowed in all regions last month. It fell most significantly in the North East, slowing from 3.6% in January to 1.1% in February. The typical home in the region now costs £163,953.

In London the average house price fell by 0.9% to £526,842 from £530,416 the previous month. This could be due to the city’s large proportion of flats, which have seen their prices stagnate.

Homes in London cost £240,000 more than the UK national average.

In Wales annual growth slowed to 1.2% in February from 1.9% in January, meaning the average price tag on a home is now £198,779.

Scotland saw the smallest fall in annual growth – the average price for a home is £198,779 as house prices slowed marginally from 2.3% in January to 2.2% in February.

Buyers in Northern Ireland will now pay £185,009 on average, an annual growth rate of 5.7% from 7% in January.

The buyers’ market returns

There is “mounting evidence that the housing market is seemingly in a pendulum moment — swinging back in a buyer’s market direction”, says Myron Jobson, senior personal finance analyst at interactive investor.

Sellers are having to accept discounts of up to £14,000 – the biggest discount in five years – as they re-price their homes, according to the latest data from Zoopla.

Additionally the stock of homes for sale is increasing – up by 60% from this time last year. The increase in choice allows buyers to drive a harder bargain.

“For those selling, it is essential to be realistic about the current market conditions and adjust pricing expectations accordingly,” says Charlotte Nixon, mortgage expert at Quilter.

“There must be a mental shift away from the years of the pandemic when the market was incredibly hot but for many this will still mean that their house has increased in price particularly if bought over ten years ago.”

Where next for house prices?

Halifax’s data differs vastly from Nationwide’s, released earlier this month. But what most house price indexes seem to agree on is that property prices are falling.

“The conflicting assessments is symptomatic of a hiccupping market that is adjusting to a come down from the blistering pace of house price growth over the past few years,” says Jobson.

House prices grew by 20.4%, or £48,620, over the last three years, according to Halifax, compared to growth of 7.8% over the previous three years.

The explosive growth was fuelled by cheap borrowing costs, stamp duty cuts and built up savings throughout the pandemic.

But now mortgage rates are far higher due to a series of interest rate increases by the Bank of England (BoE).

The base rate is currently sitting at 4%, and it’s widely expected to rise by 0.25%-0.50% when the BoE next meets late March as it attempts to control stubborn inflation.

Mortgage lenders are starting to offer deals below the base rate for the first time since last September as they try to lure buyers back in.

The employment market has also held up – unemployment is near a record low. This combination has likely helped the market. But it’s “far too early to be calling a soft landing”, says Sarah Coles, head of personal finance at Hargreaves Lansdown.

“There are still an awful lot of challenges facing the market, which means it’s likely to decline from here, and we can’t rule out something more substantial.”

Annual house price growth has slowed to its lowest level recorded over the last three years, raising further doubts about where house prices will go in 2023. Indeed, some analysts are even predicting house prices could fall by as much as 30% in 2023.

Halifax’s latest house price index showed prices remained largely unchanged in January, with the average property price coming in at £281,684 compared to £281,713 in December.

But pace of annual growth slowed to 1.9% in January from 2.1% in December. The average house price has now fallen around £12,500 from its August 2022 peak, according to the Halifax data, after falling for four consecutive months.

Meanwhile, according to Nationwide, house prices fell 0.6% in January. That’s the fifth consecutive monthly fall recorded by the building society.

“We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years,” says Kim Kinnaird, director at Halifax Mortgages.

The Bank of England raised interest rates to 4% last week as it struggles to control double-digit inflation, which is placing pressure on household budgets.

And it’s likely the central bank will continue to increase the cost of borrowing as inflationary pressures persist.

“As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand,” says Kinnaird.

The data is already starting to reflect this. Mortgage borrowing fell by £1bn from November to December as borrowers questioned whether now was the right time to buy a house.

How did house prices change per region?

Most regions across the UK experienced a slowdown in annual house price inflation according to Halifax’s figures.

Wales has recorded some of the strongest annual house price inflation over the last few years, but in January the average house price stood at £210,275 compared to £224,210 in August. Year-on-year prices added just 2%. In December the year-on-year growth rate was 6%.

In the South West of England growth also slowed “considerably,” from 6% in December to 2.7% in January.

In Northern Ireland and Scotland prices proved more resilient. Recorded prices were 6.9% higher year-on-year in January across Northern Ireland, according to Halifax. The rate of growth was 7.1% in December.

Across Scotland prices were 2.4% higher in Janaury than the prior year period, compared to growth of 3.3% in December.

The price of a typical property in London is still around a quarter of a million pounds above the UK average. But the cost of the average home did fall, from £541,472 in December to £530,396 in January. Year-on-year prices are unchanged.

Where will house prices go next?

“The housing market is reeling from a major blow to affordability and home sales following the rise in mortgage rates to levels not seen since the financial crisis and the ongoing cost-of-living storm,” said Myron Jobson, senior personal finance analyst at interactive investor.

“While housing affordability is becoming more stretched, the ongoing shortage of stock In the market has slowed the decline in price growth,” continues Jobson.

“Meanwhile, mortgage lenders have seemingly engaged in a mortgage ‘price war’ at the start of the year following a dip in demand for home loans.”

Santander, Barclays, Halifax, Nationwide and Virgin Money are all among the lenders to have made cuts to their mortgage rates as they compete for customers.

“This, combined with growing confidence that an end is in sight for interest rate rises, could mean that house prices could remain stubbornly high for longer.”

“I think we could even be about to see a return to growth as the regular interest rate hikes appear to have peaked and the economic waters start to calm,” says Simon Gerrard, managing director of Martyn Gerrard estate agents.

Stability has returned to the UK’s mortgage market after last year’s turbulence. Rates hit 6.65% in September following the mini-budget, but now sit between 4% and 5%.

The increased cost of borrowing has contributed to the slowdown, but longer term, the housing market will continue to be protected from an all out crash because of the lack of supply, analysts believe.

“The shortage of houses is what will have been preventing a sharper fall in prices for the last few months,” says Gerrard.

“Once inflation is back under control and the economic climate clears, the lack of supply could potentially fuel significant and consistent house price growth.”

If you're looking for the best savings rates, you can earn up to 5% with the top easy-access account, 4.85% with a one-year fixed bond, 8% with a top regular saver or 4.72% with a cash ISA.

While savings rates are lower than they were a few years ago, you can still find inflation-beating deals on the market and make your money work hard for you.

You shouldn’t judge a savings account solely by its top rate, but rather check whether it fulfils your needs – both short-term and in the long run. This includes looking at whether there are any restrictions on withdrawals or bonus rates, which could mean the rate quickly drops when the boost comes to an end.

The Bank of England held interest rates in April, so there's a chance that the top savings deals start to tumble. In that case, if you want a competitive rate on your cash, you may need to act quickly.

Below, we look at the top rates for notice savings, easy-access savings, fixed bonds, regular savings and cash ISAs.

Note:
All the banks we mention in this article are protected by the Financial Services Compensation Scheme, meaning up to £120,000 of your savings are protected should a bank or other financial services company go out of business.

Best notice savings rates

The best easy-access savings rates

Best regular savings accounts

The best one-year fixed rates

The best two-year fixed rates

The best three-year fixed rates

The best easy access cash ISAs

The best one-year fixed rate cash ISAs

The best two-year fixed rate cash ISAs

The best three-year fixed rate cash ISAs

Types of savings accounts

There are several different types of savings accounts to choose from.

• Easy access savings accounts: These allow you to take your money out as and when you please. However, some come with restrictions on withdrawals, which can mean you can’t immediately access all of your money in the account in an emergency. For instance, you may only make same-day withdrawals if done before a particular timeframe, or you may only be permitted a limited number of withdrawals before the rate on your account drops.
• Fixed-rate savings accounts: These come with restrictions, so you can’t access your cash until the account reaches maturity; otherwise, you may face a hefty penalty. You usually earn more interest if you are willing to lock your cash away for a fixed period, but keep in mind that this also takes away flexibility should you need the cash suddenly. Here's how much you should have in emergency savings.
• Regular savings accounts: Regular savers reward customers who are ready to commit to a consistent savings habit. These are usually the top-paying savings rates in the market, but can also come with withdrawal restrictions and are usually fixed for a certain time. We look at whether easy access or regular savings accounts give you the best return in a separate piece.
• Individual savings accounts (ISAs): These are a type of ‘tax wrapper’ into which you can put cash or investments. Currently, you have a £20,000 limit on how much you can set aside into an ISA. We look at how many ISAs you can have in a separate guide.

If you aren’t saving in this type of account, you could be forced to pay tax on interest. We look at ways to shelter your money from the savings tax trap.

If you’re looking to switch your current account, take a look at our guide to the best bank switching offers, where you can earn as much as £250.

What is the maximum amount protected by the Financial Services Compensation Scheme (FSCS) in the UK?

The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of your savings and investments if a financial institution goes bust.

Previously, the limit was £85,000 for sole accounts and £170,000 for joint accounts, but it was raised to £120,000 and £240,000 respectively in December 2025.

All accounts listed above are eligible for FSCS protection. You can check if your account is protected online on the FSCS website.

What is the current Bank of England base rate?

The current Bank of England base rate is 3.75%. Interest rates were held at 3.75% in June. The next decision from the Bank of England will be announced on 30 July 2026.

The central bank’s Monetary Policy Committee meets eight times a year to set rates.

This article is updated regularly to bring you the latest on the best savings rates. Sign up for our newsletter to stay up-to-date on all the latest deals for cash savings.

All the banks we mention are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £120,000 of your savings are protected should a bank go bust.

Cash savers looking for the best regular savings accounts could access rates of up to 8%.

Regular savers, though they typically come with higher interest rates compared to other savings accounts, can also have more restrictions, such as how much you can deposit and access to withdrawals.

On top of that, you'll need to be an existing current account customer to take advantage – but that's not the case for all of the banks and building societies.

We round up the top regular savings accounts to help you pick one that suits your needs. If you're looking for the best easy access savings accounts and fixed-term savings accounts, we explore them in separate guides.

Meanwhile, if you want to make the most of your tax-free savings, the best cash ISAs can help you grow your money.

The best regular savings accounts

Zopa Regular Saver – 7.1% AER

What’s the deal?

With Zopa Biscuit, customers can unlock an attractive savings rate of 7.1% if they deposit up to £300 per month. It's currently the top deal on the market. Savers can also earn 2% on all balances and 2% cashback on direct debit bills worth up to £1,500 per year. Plus, there are no fees on overseas spending.

Eligibility

You will need to open Zopa’s Biscuit current account to access the exclusive regular saver rate of 7.1%. The account can be opened by downloading the Zopa Bank app.

We explore whether the Zopa Regular Saver is worth getting.

The Co-operative Bank Regular Saver – 7% AER

What’s the deal?

The Co-operative Bank is offering a rate of 7% AER. The account will mature after one year, but the rate is variable, which means it could change throughout this period. You can save up to £250 a month. You have the freedom to withdraw money when you like.

Eligibility

There are no eligibility restrictions. This account can be opened either online or in branch. Read more about whether the Co-op regular saver is worth it.

First Direct Regular Saver – 7% AER

What’s the deal?

First Direct pays 7% if you deposit between £25 and £300 per month into the account.

Eligibility

To benefit from the 7% rate, you must be a First Direct current account holder. The rate will only be available for 12 months, after which it may drop.

Tipton & Coseley BS 125 Anniversary Regular Saver to 31 July 2027 – 7% AER

What’s the deal?

Tipton & Coseley is offering a limited-edition saver to celebrate 125 years of the bank. You can earn a variable rate of 7% on your savings if you deposit up to £125 per month. The balance must be sent within 14 days of opening the account, and interest is paid at maturity and on 31 July 2027. The account can be opened in a branch and managed either in person or via post.

Eligibility

The variable rate is only for new customers and those with a B, DY, WS or WV postcode.

Nationwide Building Society Flex Regular Saver – 6.5% AER

What’s the deal?

There is no monthly minimum deposit, and you can save up to £200 per month. The account allows up to three withdrawals. On your fourth withdrawal, the rate on the account will drop to 1.05% (variable) for the rest of the term. You can get access to Nationwide’s 6.5% AER regular savings account when you open a current account with the bank. Read more on what to do if your 6.5% Nationwide regular saver is maturing.

Eligibility

There are no eligibility restrictions.

Virgin Money Regular Saver Exclusive – 6.5% AER

What's the deal?

You can save up to £250 a month and earn a fixed rate of 6.50%. The rate is fixed until 30 June 2027. Interest is paid annually. The account can be opened online or at a branch.

Eligibility

There are no eligibility restrictions.

Hanley Economic BS 1 Year Branch Smart Saver – 6.3% AER

What's the deal?

This variable regular saver is returning 6.3%. You need to pay in between £25 to £300 per month. You can withdraw penalty-free twice per tax year. You can open the account in a branch and it can also be managed via post.

Eligibility

There are no eligibility restrictions.

Lloyds Bank Club Monthly Saver – 6.25% AER

What’s the deal?

Lloyds Bank is offering 6.25% on a maximum deposit of £400 per month. To give some certainty, the rate is fixed for one year. If you want flexibility with your cash, this account has no restrictions on withdrawals. After one year, your account will become a standard saver.

Eligibility:

This account is only for Club Lloyds or Lloyds Premier current account holders who haven't already opened a Club Lloyds Monthly Saver in the last 12 months.

Earl Shilton BS Monthly Saver – 6% AER

What's the deal?

You can deposit up to £500 per month – more than once – in this monthly saver from Earl Shilton Building Society. Note that this account can only be opened in a branch. Interest is calculated daily and compounded annually on the last day of February. Only two withdrawals are permitted per calendar year.

Eligibility:

There are no eligibility restrictions.

Harpenden BS 18-30 Regular Saver – 6% AER

What's the deal?

You can earn 6% with Harpenden’s new 18-30 Regular Saver if you deposit between £10 and £200 each month. You can make unlimited withdrawals. The account can be opened online. Interest is paid on maturity.

Eligibility:

As the name suggests, you need to be between the ages of 18 and 30 years old at the time of application.

Mansfield BS My Milestone Saver – 6% AER

What's the deal?

You can save up to £500 per month in Mansfield's My Milestone Saver. The interest rate includes a variable 2.75% bonus for the first 12 months, after which the rate reverts to 3.25%. You can only make one penalty-free withdrawal per calendar year. The account can be managed in a branch or via post. Interest is payable annually.

Eligibility:

There are no eligibility restrictions.

Monmouthshire Building Society Regular Saver – 6% AER

What’s the deal?

Monmouthshire Building Society is offering a variable 6% on a maximum deposit of £500 per month. It can either be a sole or a joint account. You can open it online or in a branch. Interest is calculated daily and paid when the 12-month term ends.

Eligibility:

This account is not available if you live in Northern Ireland.

Market Harborough Building Society Fixed Term Regular Saver – 5.75% AER

What’s the deal?

With monthly deposits of between £10 and £250, this account will allow you to earn interest of 5.75% on your savings. Even with a penalty, you cannot make early withdrawals. The account matures on 31 March 2027. You can open the account in a branch.

Eligibility

There are no eligibility restrictions.

Vernon Building Society Online Regular Saver – 5.75% AER

What’s the deal?

Vernon Building Society offers 5.75% variable for those who save between £25 and £250 per month. The rate is variable, and no withdrawals are permitted. If you need to access your account urgently, you can close the account without notice or penalty. The account can be opened online via the website.

Eligibility

The account is only available for those who live in the following postcodes: BL, CH, CW, M, OL, SK, WA or WN.

How does a regular savings account work?

Compared to other types of savings accounts, there are more caveats to consider when opening a regular savings account. Here's what you should look out for.

• Existing customers – Most regular savers offer the best rates to their existing customers, so you may need to have a current account to get the rate.
• Monthly payments – To receive the best rates, a lot of regular savers ask for a minimum payment, which can be as low as £10 per month. There is also an upper limit, so the amount you can save is restricted.
• Your cash is protected – The Financial Services Compensation Scheme (FSCS) protects all of the banks mentioned in our best regular savers on balances up to £85,000. It’s a good idea to spread your money across your current accounts and savings to ensure you don’t have more than the higher limit in any one account.

Wondering what to do with old £20 notes and £50 notes? While paper notes ceased to be legal tender in 2022 and can no longer be used for everyday transactions, you can still exchange them for the same value in polymer notes.

It’s worth checking any unused bags, wallets and even your children’s money boxes for old notes that are no longer in circulation.

We look at what to do with old £20 and £50 paper notes and where to exchange them.

Are paper notes still legal tender in the UK?

No, paper notes stopped being legal tender in October 2022 when they were withdrawn from circulation and replaced with polymer notes.

A spokeswoman from the Bank of England told the BBC that “all genuine Bank of England banknotes that have been withdrawn from circulation retain their face value” and there is “no expiry on the period in which we will exchange banknotes”.

What is legal tender?

According to the Bank of England, the term ‘legal tender’ means that if you offer to fully pay off a debt to someone in a form considered to be legal tender – without any contract specifying another form of payment – you cannot be sued by anyone for failing to repay the debt.

In simple terms, it’s the officially recognised money by law that works as a means to settle a debt or meet a financial obligation. It tends to be the national currency of a country, per Investopedia.

What counts as legal tender in the UK?

If you live in England and Wales, then Royal Mint coins and Bank of England notes are considered legal tender.

In Scotland and Northern Ireland, Royal Mint coins are accepted as legal tender – but not the English banknotes. Both Celtic nations have their own banknotes, issued in the two countries by authorised banks.

As for coins, it’s slightly complicated. For instance, 1p and 2p coins count as legal tender for any amount up to 20p, while 5p and 10p coins are for any amount up to £5. £1 and £2 coins are acceptable for any amount.

You will also find that most of the common payment methods, like debit or credit cards, contactless payments, or paying by cheque, are not legal tender. We look at how to pay with a cheque in a separate guide.

Where can I exchange old banknotes?

There are various places you can take old £20 and £50 paper notes. Depending on where you live, some locations may be easier to access than others.

It’s also worth noting that you won’t receive the next series of banknotes featuring British wildlife just yet – replacing historical figures like Winston Churchill and Jane Austen for the first time in over half a century.

Instead, you’ll receive current polymer banknotes featuring King Charles III or the late Queen Elizabeth II, as they remain legal tender.

At the Bank of England

One option is to take the old paper notes to the central bank.

There is currently no time limit when it comes to exchanging your old UK banknotes at the Bank of England. However, you may need to present an original photo ID and proof of address when exchanging notes.

You can do this in two ways:

• In-person: You can swap your old notes at The Bank of England Counter, on Threadneedle Street, London. The counter is open between 9:30am and 3pm on weekdays (excluding bank holidays). Do be aware – even though the last entry is at 2:45pm, you may not be served if it has reached capacity after midday.
• By post: This is done at your own risk, and you may want to insure yourself against loss before sending banknotes in the post. The Bank of England website states that they are currently taking up to 90 working days to process postal banknote exchanges – so this method is only suitable if you don’t need the cash in a hurry. You’ll need to fill in a postal exchange form and send photocopies of your proof of ID and proof of address if you’re exchanging more than £700. It’s also worth tracking your post as the bank states that it cannot confirm receipt of postal exchanges.

At the Post Office

There are 53 Post Office branches across the UK that will let you swap your old banknotes for new polymer ones – even if you don’t have a bank account.

These are the notes you can exchange at a Post Office:

• £5 note – ceased to be legal tender on 5 May 2017
• £20 note – ceased to be legal tender on 30 September 2022
• £10 note – ceased to be legal tender on 1 March 2018
• £50 note – ceased to be legal tender on 30 September 2022

You can exchange up to the value of £300 every two years. You will need to show a form of photo ID so that the Post Office can keep track of how much you exchange and that you do not exceed the limit.

Valid forms of photo ID include your passport, driving license or a national identity card.

Find all the participating Post Office branches where you can exchange old notes.

At a bank or building society

Different banks have their own rules in place covering how they will handle paper banknotes. While some are happy to exchange them for new polymer notes, others are not so understanding.

Banks and building societies happy to exchange the old notes include Halifax, Lloyds Bank, Nationwide, Barclays, NatWest and Santander.

Banks that let you exchange paper notes will generally allow you to deposit the money into your account with them.

In some cases, you can still exchange the paper notes even if you don’t have an account with that particular bank, for example, with the Bank of Scotland and Virgin Money.

Can I exchange old coins for new ones?

Old £1 coins were demonetised in 2017, but you are still able to exchange them for new ones. We look at what to do with old £1 coins in a separate guide.

You can do this at your local high street bank, though it is entirely up to the bank whether they choose to accept the old tender. Retail banks which say they accept old coins include: Barclays, Lloyds, HSBC, Nationwide, Santander, and Virgin Money.

You cannot exchange old coins at the Bank of England. You can exchange your old coins at the Post Office, so long as they are in good condition.

Can I sell old notes and coins online?

You may find that some of your old notes and coins sell for more than their face value if they are part of special limited runs.

The Royal Mint issues gold coins, primarily for investment purposes, which you can also buy.

If you have a collectable coin, then you might decide to list it online on e-commerce platforms like eBay or Facebook Marketplace, or by selling it to a dedicated reseller. You could find that your old coins could be worth far more than you expect – here’s how to spot valuable coins.

However, just because coins are listed as rare on online marketplaces doesn’t mean they are worth that much money. The price of rare coins is determined entirely by the market, and a sale is contingent on finding a willing buyer.

It is entirely legal for you to sell your old coins online or to a reseller, but make sure you do your due diligence to ensure you are not scammed. It is a good rule of thumb to use reputable platforms and insure your items.