Current Accounts that pay Interest

Historically interest paid on current accounts has been nothing to shout about with many account providers paying no interest at all. With increased competition for new business many current account providers are offering above average rates to try and tempt you to move your account although it is important to be wary of clever marketing in this area as often there may be a catch. Things to be aware of include interest that is paid up to a ceiling e.g. £500, or where a monthly fee is charged justified by a greater level of customer service which effectively nullifies any benefit you get from the higher rate of interest.

If you have a current account and have surplus cash you could also consider opening a linked savings account where money can be transferred into your savings account  to benefit from a higher level of interest. 

We have listed the interest that will be paid on certain current accounts in our easy to use comparison table below.

While it is true that most current accounts will pay a low level of interest on customer current accounts, there are still some banks that may offer customers higher interest rates if certain terms and conditions are met.

Here are some examples of common restrictions that may apply to a high interest current account.

• Customers may be expected to pay a set minimum amount of money into their account every month
• The account may have no overdraft facilities, or charges in place for using them
• Customers only be allowed to make a certain number of withdrawals and transactions over a set period of time

If you are considering switching to a current account that pays interest, it is worth remembering that switching to a new provider has never been easier.

In order to find the best deal on interest related current accounts, is well worth comparing current account offers from several different providers before making a decision.