High Interest Current Accounts

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Compare current accounts with high interest

	Account	Interest (AER) The account's Annual Equivalent Rate: the interest rate that is paid on in-credit balances over a year. Hover over the red asterisks for more details.	Overdraft Rate The interest or fee that is charged for using the account's overdraft facility.Hover over the red asterisks for more details.	Max Overdraft The maximum authorised overdraft amount permitted on the account.	Min Monthly Payment Some accounts require customers to pay in a certain amount each month. Failure to pay in the agreed amount can result in penalties or loss of account benefits.	Monthly Fee The amount that the bank charges customers each month to use the account – usually deducted from the account balance every month.
	Nationwide FlexDirect Earn 5% interest on balances up to £2,500. Conditions apply.	5% 5.00% AER (4.89% gross p.a.) for in-credit balances up to £2,500 (fixed for the first 12 months) if you pay in at least £1,000 per month. After the first 12 months the rate reverts to 1.00% variable. No interest on balances over £2,500.	0% 12 month fee-free overdraft. Any charges on arranged overdrafts after 12 months cost 50p per day. Unarranged overdrafts, cost 50p per day on balances up to £10, £5 per day on balances over £10 and are capped at £60 per month.	Not stated	£1,000	Free	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Age 16 Permanent UK Resident Yes Minimum Monthly credit £1,000 Monthly Fee None
	Representative Example: If you use an arranged overdraft of £1,200 the amount Nationwide will charge you is 50p per day (variable).
	Santander 123 Current Account Includes cashback on monthly bills.	3% AER dependent on balance: £1k+ = 1% £2k+ = 2% £3k+ = 3%	£1 per day A Daily Arranged Overdraft Fee of £1 per day capped at 20 days each monthly statement period applies.	Not stated	£500	£2	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Age 18 Permanent UK Resident yes Minimum Monthly credit £500 Monthly Fee £2
	Representative Example: 0% EAR (variable) Arranged Overdraft. A Daily Arranged Overdraft Fee of £1 per day capped at 20 days each monthly statement period applies. Assumed Arranged Overdraft credit limit: £1,200. Actual amount may differ.

Accounts with an asterisk next to the AER interest have a bonus applied to the interest rate, place your mouse cursor over the asterisk to view the bonus.

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 read about different types of current account with Know Your Money's guide

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