Understand common UK current-account charges, including monthly fees, overdraft costs, foreign transaction fees and cash-withdrawal charges — and what to check before choosing an account.
Not every bank charges every fee. Use this as orientation — then check the account tariff.
Monthly account fee
A recurring charge for some accounts or added benefits.
Overdraft cost
Interest or charges that may apply when you borrow through an overdraft.
Foreign transaction fee
A percentage or charge that may apply when spending in another currency.
Cash withdrawal fee
A charge that may apply when using certain ATMs or withdrawing cash abroad.
Refused / returned payment
Some accounts may charge when a payment cannot be completed, depending on the bank and circumstances.
Other service fees
Charges can apply for specific services such as replacement cards, international transfers or special requests.
Some current accounts charge a regular fee, often in return for additional features or benefits.
Borrowing through an overdraft can be expensive, especially if used regularly.
A fee may apply when your card converts a purchase from another currency.
Your bank or ATM operator may charge for some withdrawals, particularly abroad.
Some providers may charge when a payment is rejected or returned.
International transfers, special statements or replacement services may carry charges depending on the provider.
These apply regularly whether or not you use the feature heavily.
These depend on how you use the account.
A “free” current account is not always free to use
An account with no monthly fee can still cost money through overdraft borrowing, foreign transactions, cash withdrawals or other services.
A paid account is not automatically poor value
The relevant comparison is whether the benefits you actually use are worth more than the fee.
An arranged overdraft is borrowing. Banks typically express the cost using an interest rate such as EAR, and the total cost depends on how much you borrow and how long you remain overdrawn.
Borrowing within an agreed limit.
Going beyond agreed borrowing terms can have different consequences depending on the provider.
A percentage charge may be added when spending in another currency.
Your bank and/or the ATM operator may charge for overseas cash withdrawals.
Paying in pounds abroad can sometimes use a less competitive exchange rate than paying in the local currency.
Some current accounts charge a monthly fee in return for benefits such as insurance, breakdown cover or other services.
The account may be good value if you genuinely use the included services.
Paying for benefits you do not use can make the account unnecessarily expensive.
Compare the annual account fee with the realistic value of the benefits you would otherwise buy separately.
A fee-free account may suit someone who does not use paid extras.
Repeated overdraft use can become costly.
Low-balance alerts can help you spot problems before scheduled payments leave the account.
Stopping unused recurring payments can reduce avoidable outgoings.
If you travel regularly, compare the account’s foreign-usage charges.
Another account may offer lower fees or features better aligned with how you bank.
Switching may help in some situations — it does not guarantee lower costs for everyone.
FAQs
General education only — not personalised financial advice. Always check the provider’s current tariff.
If you spot something that needs correcting or want to contact our editorial team, get in touch.