Your current account is usually central to your day-to-day money management, so you need one that reflects the way you like to bank and also gives you something back, whether in interest, cashback or a free overdraft.

And by managing your everyday cash sensibly you can free up money to save and invest.

There’s a wide world of options out there so, to help you narrow down the choices, here are a few tips from the experts.

HOW WILL YOU USE YOUR ACCOUNT?

To find your perfect match, think about how you plan to use your current account and what your typical balance will be. Are you someone who travels a lot and would benefit from an account that doesn’t charge you to use your card overseas? Are you a big spender who would like to earn rewards or cashback on your spending?

‘Current accounts vary from plain vanilla offerings with no perks or interest, to those paying interest and others with perks in exchange for a monthly fee,’ says Justin Modray, founder of Candid Money. ‘The best choice will depend on your likely average account balance, and if you’ll likely stray into overdraft territory each month then overdraft charges are likely to be your key consideration.’

In fact, the rules on overdrafts are about to change so banks are reviewing their fees, making it even more important for customers to shop around, says John Crossley, director of money at Comparethemarket.com. ‘Many banks have opted to set their new overdraft interest rate at 39.9% Effective Annual Rate (EAR), but this is not universal, with one high street bank opting for a comparatively cheaper 35% EAR and others opting for a 49.9% EAR,’ he explains.

‘Interestingly, two of the challenger banks offer overdraft interest rates dependent on your credit rating, likely resulting in those with a poorer credit rating paying more in interest than those with better credit scores.’

HOW CAN YOU FIND THE BEST DEALS?

Rates change quickly and the best-buy tables are never static, so use comparison sites and shop around once you’re ready to switch. Interest rates have plummeted on current accounts as well as savings accounts, with just eight out of 58 standard current accounts paying more than 0.5% interest, says Katie Brain, consumer banking expert at Defaqto. ‘Nationwide FlexDirect is the highest paying with a rate of 5% but it comes with restrictions as you can only earn this rate on £2,500, so it does depend on what you will be holding in the account,’ she says.

For reward accounts, Modray points to Santander 123 Lite which offers cashback on some household bills, and First Direct for a good ‘plain vanilla’ account if you’re unlikely to ever have a high balance but also won’t run a large overdraft. ‘There are no bells and whistles, but First Direct has reputation for good service and tends not to charge interest when overdrawn up to £250,’ he says. As an added bonus, it also has a linked regular saver paying 2.75%.

SWITCHING BONUSES

There used to be a lot of switching incentives on offer as banks battled for your custom, but currently there are only two to choose from. First Direct is consistently one of the top-rated banks for customer service, and it is offering £100 if you switch to it, while parent company HSBC is offering £175. It’s now easy to switch thanks to the Current Account Switch Service which should automatically transfer all your incoming payments, direct debits and standing orders within a week. ‘A current account is not for life,’ says Modray. ‘If you receive poor service or spot a better deal, then don’t be afraid to switch.’ But you’ll usually need to pass a credit check to open a new bank account so bear this in mind.

TRADITIONAL BANKS VS FINTECHS

Aside from the traditional high street banks and building societies, challenger banks are now also offering current accounts with a more fintech feel. Bank with the award-winning Starling, for example, and you’ll do everything via its app.

But while there are perks to digital accounts, such as real-time transactions and tools for budgeting, money management and spending analysis, they won’t be suitable for everyone, says Brain. A drawback for some people could be a lack a physical presence on the high street and the facility to pay in cash or cheques over the counter.

‘If you are somebody who likes to pay cash or cheques into your account, Monzo charges you to pay in cash, and both Starling and Monzo will only accept cheques by post. These can take up to a week to be credited, whereas with other banks you can take a photo on your phone and it is in there the next day, so those are things to consider,’ she adds.

ARE PACKAGED EXTRAS WORTH THE COST?

If you go for a packaged current account you will usually pay a monthly fee for an account which includes benefits like breakdown cover and various types of insurance. Good if you’ll use them all, but they may come with restrictions and high excesses, and you could end up paying for things you don’t actually need.

‘Accounts with perks such as travel and mobile phone insurance tend to offer poor value, with monthly account fees often outweighing the true value of the perks,” says Modray. ‘One of the better options tends to be Nationwide FlexPlus, which offers comprehensive family travel insurance, family smartphone cover and UK and European breakdown insurance for £13 per month, potentially good value if you require all these insurances.’

If you’re not sure you’ll use all the extras, you’re probably better going for a free current account and shopping around for cheap standalone insurance that’s more tailored to your needs.

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