High Interest Current Accounts
Compare Mobile & High Interest Current Accounts
Nationwide FlexDirect Current Account
Earn 5% AER Fixed Interest for 12 Months
- On balances up to £2,500
- Interest paid for first 12 months
- No current account fees
- Easy online account management
- Can be setup as an extra account
Our view: With this current account you get 5% AER on the first £2,500 of your cash which is fixed for 12 months. To qualify you will need to pay in £1,000 pm (Equates to a £12,500 pa salary) . Please note the interest rate drops to 1% after 12 months. Unusually you do not have to set up any direct debits with this account, so you can just open it as an extra account. The account has full savings FSCS protection.
High Interest Current Account Offers
AER fixed on balanced up to £2,500
- 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
- Manage your account online, by phone or in branch
- No fees on arranged overdrafts for the first 12 months
- Access to Flexclusives – Select Credit Card 15.9% APR Representative and low personal loan rate 3.0% APR Representative
- Recommend a friend – If you’re a Nationwide member you can earn up to £500 per tax year by recommending five friends (£100 each)
- 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)
AER fixed on balances up to £20,000
- 1.50% AER (variable) payable on your entire balance up to £20,000
- 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
- Must be 18 or older and a UK resident Interest
- Cashback only 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
AER fixed on balances up to £2,000
- 0.50% AER (variable) payable on your entire balance up to £2,000
- Linked to instant access savings account currently paying 1.00% AER, paid quarterly
- Apple Pay & Google Pay enabled contactless debit card
- Use with Virgin Money app
- Rated ‘outstanding’ by Moneyfacts
- Must be 18 or older and a UK resident
- No account fee
- No minimum funding required to open account or requirement to pay in regularly
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 Nationwide offer 5% AER fixed (4.89% gross pa) in credit interest on balances up to £2,500 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.