High Interest Current Accounts

Compare Mobile & High Interest Current Accounts

High Interest Current Account Offers

Account
HSBC Advance Bank Account
Special Offer
£125
For Switching
Interest Rate
2.75% AER/Gross on Regular Savings
Funding Required
£1,750 pm or £10,500 over 6 months to qualify
Account Fee
FREE
Account
Santander 1|2|3 Current Account
Interest Rate
0.60%
AER fixed on balances up to £20,000
Funding Required
£500 per month
Minimum Arranged Overdraft
On Application
Account Fee
£5 pm

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.

 

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.
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