High Interest Current Accounts

  • Some current accounts pay interest on in-credit balances.
  • Many accounts offer high interest rates, making them a good alternative to traditional savings accounts.
  • Below you can compare rates on interest-paying accounts currently available in the UK.

What type of current account are you looking for?

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Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

More about high interest current accounts

Most current accounts offer really low interest rates on the cash you hold in them. So low, in fact, they are often a fraction of the inflation rate - the amount the things we pay for day-by-day go up in price by throughout the year.

But some accounts break the mould. These can pay you a very respectable rate of interest - in some cases better even than what you can get with an open access saving account. Other than the interest, the account works just like any other current account.

There are usually caveats though. Sometimes the high interest is used to lure you in and it will run out after a set period of time. Elsewhere, the interest may work on a staggered system where it starts out low and increases according to the amount of money that's held in the account. These are great for people who often have to keep large amounts of money in their account to pay off big bills.

It won't usually be worth keeping any cash in these accounts permanently, though. Even if you can't tie the money up because you'll need it at some point, you'll usually be able to find an open access savings account with a better return somewhere.

Depending on your circumstances, you might be able to earn a better return with another type of account which offers you cash-back every time you use your card in the shops.

Click here to find out more about current account types with our handy FAQ guide.

Helpful links for current account issues

Financial Conduct Authority (FCA) - The UK financial regulator's website features lots of useful information for banking customers covering everything from knowing your rights to how to stop unauthorised payments.

Financial Service Compensation Scheme (FSCS) - The FSCS is the best place to find out if your bank is covered by the compensation scheme and for advice on making a claim.

Financial Ombudsman Service - If you've complained to your bank and are still having ongoing problems then the Financial Ombudsman is the next step - their website covers everything you need to know about making a complaint.

Money Advice Service - The government's Money Advice Service provides unbiased advice on choosing, opening and managing a current account.