Current Accounts With The Best Overdrafts

Current Accounts With The Best Overdrafts

Featured Deal
Account
First Direct 1st Current Account
Switching Incentive
Free Gift
(worth up to £150)
Funding Required
No minimum
Overdraft rate
0% for first £250
Account fee
Free if funding over £1,000 per month

UK Current Accounts With Overdraft Facilities

Most current account providers will offer a overdraft facility with your current account but the fees charged can vary significantly from one bank to the next.

Some banks offer a no fee arrangement up to a set threshold and also may offer a interest free limit as well.

The fees charged for using a authorised overdraft limit can also vary as can the interest rate levied. the same can also be said of unauthorised overdraft use.

In recent years there has been pressure on banks and building societies to reduce their charges for current account banking. If you are looking to change your current account provider it can pay to shop around.

With the Bank of England Base Rate falling to historical lows over the last 5 years, there are not many current account providers who pay what you would call high interest on the account balance.

While the Base Rate increased last month by 0.25% banks are in no hurry to pass this rate rise onto customers.

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.

Currently the highest paying interest current account in the UK presently is the Nationwide Flex Direct Account paying 5% on up to balances of £2,500. After a year the account drops to 1%.

You could also consider their FlexPlus Account which pays a lower 3% on or up to £2,500, but with the rate staying at that level. However to get this deal a monthly fee of £13 is charged for the privilege.

For savers with larger deposits of money Santander 123 Account pay 1.5% on balances up to £20,000 plus you get 3% cashback on household bills paid from your account. This account comes with a monthly £5 fee.

It is in August and September that UK Banks start to bring out their latest student current account offerings. Banks are understandably keen to get your business. Research shows that one you set up a current account you are unlikely to move it.

 

Account
First Direct 1st Current Account
Switching Incentive
Free Gift
(worth up to £150)
Funding Required
No minimum
Overdraft rate
0% for first £250
Account fee
Free if funding over £1,000 per month
Account
Nationwide FlexDirect Current Account
Interest Rate
5.00%
AER fixed on balanced up to £2,500
Funding Required
£1,000 per month
Overdraft rate
0% for 12 months
Account
Nationwide FlexPlus Current Account
Interest Rate
3.00%
AER fixed on balanced up to £2,500
Funding Required
No minimum
Overdraft rate
0% for first £250