The good news is you’ve got plenty of options to choose from.
More of us switching
Recent years have seen the launch of several high-interest paying current accounts which can be funded with less than £1,000 a month, making them accessible to people on lower salaries.
And take-up of these new improved accounts has already been huge.
So if you’ve stuck with the same current account provider for years, why not take the plunge and switch too?
Here’s our rundown of some of the best current accounts which don’t require you to pay in £1,000 or more a month.
Accounts you can open with £500 a month
If you can only fund your current account with £500 a month, then you’ve got two great options to choose from.
Santander 123 current account
The Santander 123 current account pays a generous 3.00% AER (variable) on balances between £3,000 and £20,000.
If you have a smaller balance, you will still earn interest, but at a lower rate. If your account balance is between £2,000 and £2,999.99, you’ll earn 2.00% AER (variable) and if it’s between £1,000 and £1,999.99 you’ll earn 1.00% AER (variable).
To qualify, you’ll need to have at least two active direct debits on the account and pay in £500 or more a month.
However, be aware that from November 1, the amount of interest you can earn will be cut to 1.50% AER (variable) on all balances up to £20,000.
You don’t just earn interest on your balance though. Pay your household bills by direct debit from the account, and you’ll earn cashback of between 1.00% and 3.00% on this spending.
You get 1% cashback on your water, council tax and Santander mortgage bills, 2% on gas and electricity and 3% on phone, internet and TV.
Just be aware the account has a £5 monthly fee.
TSB Classic Plus
The TSB Classic Plus account pays a whopping 5.00% AER (variable) on balances up to £2,000, again with a minimum monthly funding requirement of £500 per month.
To earn the 5.00%, you must also register for internet banking, paperless statements and paperless correspondence.
You'll also earn 5% cashback on your first £100 of contactless or Apple Pay payments every month until the end of September 2017 (or December 31, 2016 if you opened your account before June this year).
However, be aware from January 4, 2017, the interest rate will be cut to 3.00% AER (variable) and this will only be paid on balances up to £1,500.
Accounts you can open with £750 a month
If you can afford to stash a little extra into your current account every month, there is another account to consider.
Halifax Reward Current Account
The Halifax Reward account comes £100 bonus for switching, and the account also pays you a £5 reward every month you pay in £750. You must also pay out two different direct debits each month and stay in credit to qualify. However, from February 2017, the reward will be reduced to £3 a month.
To be eligible for the £100 bonus, you must use the Current Account Switch Service and close the account you have elsewhere.
Accounts with higher monthly funding requirements
Of course, if you are able to fund your account with £1,000 or more, there’s even greater choice. But not all of these accounts beat those with lower funding requirements, so be sure to compare all options carefully.
Nationwide Building Society FlexDirect Current Account
The Nationwide FlexDirect Current Account offers a competitive 5.00% AER fixed for 12 months on balances up to £2,500, so long as you pay in £1,000 or more a month.
After those 12 months are up, the rate reverts to 1.00% AER (variable).
Lloyds Bank Club Lloyds Current Account
If you can afford to pay as much as £1,500 into your current account each month, the Club Lloyds account offers up to 4.00% AER (variable) on balances between £4,000 and £5,000. (You’ll earn 2.00% on balances up to £4,000 and 1.00% on balances up to £2,000).
You will also need to pay out at least two direct debits each month and if you don’t pay in at least £1,500 a month, you’ll pay a £5 monthly fee.
However, be aware from January 8, 2017, the account will pay a flat rate of 2.00% AER (variable) on all balances up to £5,000. The fee will be reduced to £3 a month.
Earn cashback for switching
While interest on a current account balance is attractive, it is also worth thinking about accounts that do not pay interest but which pay cashback when you switch to them.
For example, Co-operative Bank is paying £150 cashback if you switch your current account to them using the Current Account Switch Service. You'll need to switch at least four active direct debits. T&Cs apply.
Switching is simple
Thanks to the Current Account Switch Service, moving your current account to a higher-interest paying account couldn’t be easier.
The bank you want to move to will arrange to transfer all of your payments going out, and those coming in, so all the hard work is done on your behalf.
The move won’t take longer than seven days and there’s a Guarantee, so you won’t have to pay any charges or fees in the event that something goes wrong while the switch is taking place.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.