High Interest Current Accounts

How much does your a/c pay?

There are not many current account providers who pay what you would call high interest on the account balance. Typically most banks and building societies pay either a nominal amount of interest or no interest at all. Some providers will pay higher interest on the first say £1,000 held on the account, and then pay a much lower rate on money held over this amount.

 

The comparison tables below should make the job of comparing different deals easier.

Interest Paying Current Accounts
 AccountInterest (AER)Overdraft RateFunding Required*Fee pmFeaturesApply
5.0%*0% for 12 months£1,000 per monthN/A5.0% IN-CREDIT INTEREST on balances up to £2,500 for the first year.More Info >

Nationwide FlexDirect Current Account

  • *5.0% AER fixed (4.89% gross pa) in-credit interest on balances up to £2,500 for the first 12 months
  • No monthly account fee
  • Paperless statements 
  • Visa Debit card and option chequebook 
  • Manage your account online, by phone or in branch
  • Mobile app
  • No fees on arranged overdrafts for the first 12 months 
  • Must be 18 or older
  • Overdraft charge of 50p per day after the first 12 months
  • Must pay a minimum of £1,000 into the account each month, from an external source (i.e. not another Nationwide account)

 

5% AER**£25 interest and fee free overdraft plus £10 buffer£500 per monthN/A5% AER variable in-credit interest on balances up to £2,000More Info >
TSB Classic Plus Current Account

  • 5% AER on balances up to £2,000. Must pay in £500 a month, register for internet banking and paperless statements and paperless correspondence 
  • Plus 5% Cashback on your first £100 Contactless payments every month. Contactless Subject to eligibility. End Sept 2017. (T&Cs apply).
  • If you have a Plus account, earn up to £5 a month cashback with our selected TSB credit cards. T&C’s apply. Ends Sept 2017
  • Must be 18 or older
  • Representative example: If you use an overdraft limit of £1,200 the interest rate charged will be 19.94% EAR (Variable) 
1.50%*Fee free for 4 months, then £1 per day£500 pm£5 pmEarn cashback on household bills. 3% AER on balances over £3000 More Info >

Santander 123 Current Account

  • *1.50% AER (variable) payable on your entire balance up to £20,000 (3.0% AER until 1st November 2016).
  • Up to 3% cashback on household bills - 1% on water, council tax bills and Santander mortgage payments, 2% on gas and electricity bills, and 3% on mobile phone, home phone, broadband and paid-for TV packages
  • Visa Debit Card
  • Mobile app
  • Withdraw up to £300 a day from any Santander or Link cash machine
  • Must be 18 or older and a UK resident
  • Cashback available when you set up at least two eligible Direct Debits 
  • Monthly fee of £5
  • Must pay a minimum of £500 into the account each month
N/a*First £250 interest free, £6 pm thereafterNo minimum£18*Instead of interest you receive 3% rewards on selected household bills, plus extra benefits including free Worldwide travel insurance, UK breakdown cover and mobile phone insuranceMore Info >
NatWest Reward Platinum  Current Account

  • Instead of interest you receive 3% off selected household bills
  • Also earn at least 1% on qualifying purchases at Reward partners
  • Extra benefits included: free Worldwide insurance (up to 31 days), free UK Breakdown cover, free mobile phone insurance, 10% discount on travels services (such as holdays, airport parking and baggage upgrades), preferential foreign currency rates, National Trust family day passes, 2 for 1 or 50% off selected restaurants
  • Access account anytime with 24-hour UK call centres, Online Banking and Mobile Banking app
  • Emergency Cash Service - access money from ATMs (limits apply) if debit card lost or stolen
  • No specific minimum funding required

  • Must be 18 or older
  • £18 monthly fee
  • £250 interest free Overdraft threshold. £6 per month thereafter

 

N/a*First £10 interest free, £6 pm thereafterNo minimum£12*Instead of interest you receive 3% rewards on selected household bills, plus extra benefits including free European travel insurance and mobile phone insuranceMore Info >
NatWest Reward Silver Current Account

  • Instead of interest you receive 3% off selected household bills
  • Also earn at least 1% on qualifying purchases at Reward partners
  • Extra benefits included: free European travel insurance (up to 22 days), free mobile phone insurance, preferential foreign currency rates, 25% cashback on selected ticket bookings, 2 for 1 or 50% off selected restaurants
  • Access account anytime with 24-hour UK call centres, Online Banking and Mobile Banking app
  • Emergency Cash Service - access money from ATMs (limits apply) if debit card lost or stolen
  • No specific minimum funding required

  • Must be 18 or older
  • £12 monthly fee
  • £10 interest free Overdraft threshold. £6 per month thereafter

 

N/a*First £10 interest free, £6 pm thereafterNo minimum£3*Instead of interest you receive 3% rewards on selected household billsMore Info >
NatWest Reward Current Account

  • Instead of interest you receive 3% off selected household bills
  • Also earn at least 1% on qualifying purchases at Reward partners
  • Access account anytime with 24-hour UK call centres, Online Banking and Mobile Banking app
  • Emergency Cash Service - access money from ATMs (limits apply) if debit card lost or stolen
  • No specific minimum funding required

  • Must be 18 or older
  • £3 monthly fee
  • £10 interest free Overdraft threshold. £6 per month thereafter

 

There are current accounts with high interest rates available from certain UK banking organisations. If you open one of these current accounts you may be subject to certain terms and conditions, such as:

  • You may have to pay a minimum amount into your current account each month to receive the high rate of interest.
  • The interest rate may drop considerably after a set period, so it is wise to open the account with a substantial initial deposit to gain as much interest as possible in order to make the most of the high interest current account.


 

Switch Bank or Building Society


It is becoming easier to switch current accounts between banks and building societies because of electronic banking and employees who specialise in the switching process. In September 2013, most banks will be able to switch your current account in seven days, whether it is a high interest current account or an instant access current account with low interest.