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?

NatWest Reward Account
  • 2% back in Rewards on 7 types of household bills if paid by Direct Debit
  • On average NatWest customers earn £83 in Rewards per year. Based on monthly bills of £345 excluding the monthly £2 fee
  • Includes NatWest's mobile app & Emergency Cash
  • TSB logo

    TSB Classic Plus Account

    • 3% AER on balances up to £1,500
    • To earn 3% AER you must credit your account with £500 each month, register for internet banking, paperless statements and paperless correspondence
    • Maximum Interest (AER) [?]
    • Switching Incentive
    • Minimum Monthly Credit
    • Monthly Fee

    Interest details

    • 3% AER/2.96% gross variable interest paid on balances up to £1,500 only. Must pay in £500 a month, register for internet banking and paperless statements and paperless correspondences.
    • £5 cashback every month just for regularly spending with your debit card (minimum 20 debit card payments per month) and £5 cashback every month just for paying two direct debits. Valid from 8th January 2018. Ends 31st December 2018. (Ts&Cs apply).
    • Plus, if you also use an eligible TSB credit card, you can earn up to £60 cashback in a year on that too. Representative 18.9% APR (variable). Subject to status. Must be 18+ and a UK resident. Valid from 8th January 2018. Ends 31st December 2018.

    Overdraft details

    • £10 interest-free overdraft buffer
    • If you go overdrawn by more than £10, TSB's Grace Period means that you have until 10pm (UK Time) to pay in enough money to avoid any overdraft fees you may incur that day
    • 0% interest on planned overdraft up to £25
    • 19.84% AER variable and a Monthly Overdraft Usage Fee of £6 apply to amounts of £25 and over.
    • Borrower must be 18+ and a UK resident.
  • Nationwide logo

    Nationwide FlexPlus

    • 3% on balances up to £2,500
    • 3 month fee-free overdraft
    • Includes worldwide travel insurance, mobile phone insurance, breakdown cover and extended warranty
    • Maximum Interest (AER) [?]
    • Switching Incentive
    • Minimum Monthly Credit
    • Monthly Fee

    Interest details

    • 3% on balances up to £2,500
    • No interest on balances over £2,500

    Overdraft details

    • Arranged overdraft fees: 0% for the first 3 months
    • 50p per day on balances over £100 thereafter (the first £100 of your arranged overdraft is free)
    • Unarranged overdraft fees: 50p per day on balances up to £10
    • £5 per day on balances over £10 and are capped at £50 per month
    • First time fee refund - Nationwide will refund the first overdraft fees you incur
  • Santander logo

    Santander 123 Current Account

    • 1% cashback on water and council tax bills and on your Santander monthly mortgage payments (up to maximum of £1,000)
    • 2% cashback on gas and electricity bills and on Santander home insurance premiums (policies administered and underwritten by Aviva Insurance Limited)
    • 3% cashback on mobile, home phone, broadband and paid for TV packages
    • Maximum Interest (AER) [?]
    • Switching Incentive
    • Minimum Monthly Credit
    • Monthly Fee

    Interest details

    • 1.50% AER/1.49% gross (variable) interest on your entire balance up to £20,000

      Cashback Details
      To get cashback on your household bills and interest on your balance, just follow these steps:
    • · Pay at least £500 into your account each month - any interest paid and payments between Santander personal accounts you're named on won't count towards this
    • · Have at least two active Direct Debits - you'll receive cashback on any qualifying household bills you pay by Direct Debit

    Overdraft details

    • You could get a 4 month fee-free Arranged Overdraft when you switch to us. (Overdrafts are offered depending on your circumstances.)
    • The Arranged Overdraft Usage Fee will depend on the amount you use:
    • Below £2,000 - £1 a day
    • £2,000 to £2,999.99 - £2 a day
    • £3,000 and over - £3 a day
    • Unarranged Overdraft Usage Fee - £6 per day
Please note: 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.

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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.

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