High interest current accounts

Earn more on your current account. There’s no need to accept a low rate of interest on your current account so switch to a better deal today and get a higher return on your money…

High interest current accounts - Order based on in-credit rate (AER) in descending order

    • Provider/Product name FlexDirect


    • Interest Rate (AER) 5.00% on balances between £1 and £2500
    • Monthly Fee No monthly fee
    • Customer Service Rating
    • Go to site


      More details

    Market leading

    This is the best rate for balances up to £2,500

    Great for
    In credit interest of 5% AER on balances from £1 to £2,500. Conditions apply
    Dedicated switching service to personally manage your account opening
    But be aware that
    Minimum monthly funding of £1,000
    After 12 months the interest rate lowers to 1% AER
  1. 2016 SUPERS

    Winner of the Best Overall Provider

    Great for
    In credit interest of 5% AER for balances from £0 - £2,000. Access to a Monthly Saver Account earning 5%AER (fixed) for 12 months. Deposit from £25 up to a max of £250 a month by standing order
    With 5% Cashback on your first £100 Contactless payments every month (T&Cs apply). Subject to eligibility. End Dec 2016.
    But be aware that
    The Classic Plus Account is subject to application and approval
    To earn 5% AER on the Classic Plus Account credit your account with a minimum of £500 each month, register for internet banking, paperless statements and paperless correspondence
  2. 2016 SUPERS

    Winner of the Best 'Loyalty’ Current Account Provider

    Great for
    Monthly cashback on selected household bills
    Monthly interest of 3% AER (variable) payable on your entire balance up to £20,000, when you have at least £3,000 in your account
    But be aware that
    A £5 account fee will be taken from your account each month
    You must pay in at least £500 each month 
  3. Great for
    Keeping track of all your payments and spending over time – B brings all the important stuff into one place
    You’ll have a grace period of two working days if you do go overdrawn
    But be aware that
    A compatible smartphone and tablet is required to access all of B’s features
    There’s no monthly fee to pay for 12 months. After that, you pay £2 a month

    Representative Example:

    Representative Example (this example is for illustration purposes only). Rate of interest - 11.84% per annum (variable), Total amount of credit - £1200, EAR – 12.50% variable, Monthly Planned Usage Fee £6.00 with a £25.00 buffer and a two Business Day grace period before any fee is charged (maximum 1 fee per month). The rate of interest shown is an Effective Annual Rate (EAR), this is the cost of borrowing on current accounts which takes account of the rate of interest charged, the frequency it is levied to the account and the compounding interest.

High interest current accounts

What is a high-interest account?

Many of us don’t notice the interest we earn on money in our current accounts mainly because they often pay virtually nothing on balances in credit – and some pay zero interest. However, there are a number of high-interest current accounts which are ideal if you always have money in your account and don’t go overdrawn.

Who do they suit?

High-interest bank accounts are great if you tend to keep a high balance in your account and as long as you never slip into the red. Many of the best deals require you to pay in a certain amount each month, often between £1,000 and £1,500 – so you need to be certain you will qualify for the account.


The benefits are fairly clear – if you typically leave a balance in your current account then you could earn a decent rate of interest on it. In fact, some high-interest current accounts actually pay more than many savings accounts.

For example, if you leave an average balance of £1,000 in a high-interest bank account paying 5.00%, you’ll earn £50 a year in interest.

Some high-interest bank accounts will also offer a linked savings account and this may have a more competitive rate than you will find elsewhere, although you should not take that for granted – it’s still worth comparing savings accounts to check you have the best deal.

Other high-interest savings accounts may offer a cash switching incentive.


In many cases the high rate of interest only applies on balances up to a certain level – often £2,500. Above this amount, the rate tends to drop to 0.1%. There are a couple of exceptions so it’s well worth checking all the product details before you apply.

It’s also important to note that the high interest rates are usually introductory offers and the rate is likely to drop after 12 months. With so few people switching their current accounts regularly, banks and building societies know that they will usually keep your custom even once the high introductory rate has ended.

As already mentioned, an increasing number of current accounts require customers to pay in a minimum amount each month and this is usually the case with high-interest current accounts. What’s more, the money you deposit may have to be your salary.

High-interest current accounts are aimed at those who run their accounts in credit. If you have a tendency to go overdrawn, you will probably be better off with a different account as the overdraft rates tend not to be the most competitive.


If you are looking for somewhere more long-term to keep your savings, a high interest current account may not be the best option. An Individual Savings Account (ISA) is always a good place to begin saving as the interest you earn isn’t taxed, so consider investing into a cash ISA first. You can invest up to £15,240 in a cash ISA before the current tax year ends on 5 April 2016.

You can usually secure a high rate of interest by agreeing to lock your money away for a fixed period, or you can use an easy access account if you want to be able to get at your cash immediately.

High interest current accounts


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