High Interest Current Accounts
Compare Mobile & High Interest Current Accounts
High Interest Current Account Offers
- Access to Regular Saver Account paying 1.00% AER/Gross fixed for 12 months if saving between £25 and £300 a month (up to £3,600 per year)
- £250 interest-free overdraft (subject to status)
- No minimum monthly funding
- No monthly account fee
- Mobile banking app
- UK based contact centre
- Easy switching with the Current Account Switch Service
- Must be 18 or older
- Must be UK resident
- Get the £100 when switching as a new customer and paying in at least £1,000 within three months of the account opening
AER fixed on balances up to £20,000
- 0.30% AER (variable) payable on your entire balance up to £20,000
- Up to 3% cashback on household bills – 1% on council tax bills, Mobile and home phone bills, broadband and paid-for TV packages, and Santander monthly mortgage payments. 2% on Gas and electricity bills, Santander Home Insurance premiums and Santander Life Insurance premiums, and 3% on water bills
- Visa Debit Card
- Mobile app
- Must be 18 or older and a UK resident Interest
- Cashback only available when you set up at least two eligible Direct Debits
- Cashback capped at £5 for each cashback tier each month
- Monthly fee of £4
- Must pay a minimum of £500 into the account each month
- Arranged overdraft interest rate of 39.94% APR / EAR (variable)
What current accounts pay high interest?
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.
What is the best student current account?
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.
Some of the best rates of interest you will get on cash currently are on current accounts. E.g Santander offer 0.60% AER fixed in credit interest on balances up to £20,000 for the first 12 months.
You can also benefit from switching your account. A number of banks now offer switch incentives.
The good news is that switching is a lot easier than it used to be – basically the new bank account provider will do all the work in setting up your direct debits and standing orders etc.
Things to consider:
- Do you need an overdraft facility? High interest current accounts rarely offer attractive overdraft facilities, so if this is a priority then you may be better looking for a current account with competitive overdraft fees.
- Are you looking to use your debit card on a regular basis abroad? If this is important then you should look at a options provided by some of the new mobile bank current account providers such as N26 and Monese.
- Monthly account fees. Make sure the fees you pay outweigh the benefits of the account.