Banks and providers have a couple of ways of making money from current accounts.
The first is overdraft fees. If your current account has an overdraft, you'll usually be charged a fee each time you enter it. If you fail to pay back your overdraft, you'll be charged interest on any outstanding amount. This interest can range between 20-40% EAR.
If you don’t set up an arranged overdraft, banks may charge you a daily fee for using one.
Banks also make money off packaged and reward accounts that require a monthly or annual fee to open. This monthly fee ranges from £10-£20.
Some banks will give you a current account in the hope you’ll take out other products with them in the future, like credit cards, loans and mortgages, which is how they’ll make money off you longer term.