High interest current accounts

Compare high interest 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

 

TSB

Classic Plus Account

Interest rate (AER)

 

on balances between and

on balances up to 

Monthly fee

annual fee No monthly fee

Customer service rating

Great (63%) Ok (30%) Poor (7%)

Customer service ratings provided by users of

  • Cashback
  • Direct Debits
  • Mobile App
  • Online Banking
Great for:
  • 3% AER on balances up to £1,500
  • £5 cashback for 20 debit card payments per month and £5 cashback for two different direct debit payments per month. Valid from 1st March 2017. T&Cs apply, ends 30th June 2018
  • If you have a Plus account, earn up to £5 a month cashback with selected TSB credit cards (Representative 18.9% APR variable) . T&Cs apply. Ends 30th June 2018
But be aware that:
  • To earn 3% AER (variable) on the Classic Plus Account, credit your account with a min of £500 each month, register for internet banking, paperless statements and correspondence
  • You can only get the monthly cashback if you opened your account on or after 1st March 2017, and if you register for internet banking. T&Cs apply. Offer ends 30th June 2018
  • To earn up to £5 per month credit card Cashback, you need an eligible credit card and the Cashback ends June 2018. Subject to Status and Lending Criteria. Must be 18+ and a UK resident
2016 SUPERS

Winner of the Best Overall Provider

Santander

123 Current Account

Interest rate (AER)

 

on balances between and

on balances up to 

Monthly fee

annual fee No monthly fee

Customer service rating

Great (65%) Ok (29%) Poor (6%)

Customer service ratings provided by users of

  • Mobile App
  • Switching Service
  • Overdraft Facility
  • Cashback
Great for:
  • Earn interest of 1.5% AER (variable) on your balance up to £20,000
  • Earn cashback on selected household bills, as long as you pay by direct debit
But be aware that:
  • You'll have to pay a £5 monthly fee
  • You must pay in at least £500 every month
  • You must have at least two active direct debits from this account
2016 SUPERS

Winner of the Best 'Loyalty’ Current Account Provider

B

Current Account

Interest rate (AER)

 

on balances between and

on balances up to 

Monthly fee

annual fee No monthly fee

Customer service rating

Currently unrated

  • Mobile App
  • Switching Service
  • Online Banking
  • Overdraft Facility
Great for:
  • If you go overdrawn you'll have 2 working days to bring your balance within the limit before being charged any fees
  • Earn interest of 0.50% AER with the linked B Instant Savings Account
But be aware that:
  • You need to have a compatible smartphone or tablet to manage this account
  • You must open a B Instant Savings Account when you open this account
  • You must be at least 16 years old to open this account, and at least 18 years old to apply online

 

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Current accounts. Trust us to explain them simply

Guides

  

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.

Benefits

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.

Negatives

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.

Alternatives

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 £20,000 in a cash ISA before the current tax year ends on 5 April 2018.

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.