This comparison simply includes all savings accounts.
Current Account Interest Rates
Why we like it: Discounts available when you shop at certain major high street stores and supermarkets, as well as some holidays, cinema, concert tickets and events. All year round family travel insurance, UK breakdown cover, mobile phone and gadget insurance
Why we like it: All year round travel insurance , UK breakdown cover, mobile phone and gadget insurance, and certain discounts available to account holders for some major stores and supermarkets, cinema tickets, holidays, events and concerts.
Why we like it: INNOVATIVE NEW BANKING SERVICE powered by Clydesdale and Yorkshire Banks. Get your current account and instant access savings account working together. Earn 0.50% AER on ALL instant access credit balances and 0.25% AER on current account balances up to £2,000. Fee free
Why we like it: BEST SELLING CASHBACK CURRENT ACCOUNT. Earn 3.00% AER (variable) interest on balances from £3,000 up to a maximum of £20,000. Up to 3% CASHBACK on various household bills. Monthly fee of £5. Must pay in £500 pm.
Why we like it: £100 for switching into account. £250 interest free overdraft. Free banking if paying over £1,000 per month. £100 if not satisfied after 6 months
Why we like it: Top 20% of Reward Customers earn on average £217 - You can earn Rewards on Direct Debits from your current account for: • Council tax • Gas, electricity and water supply • Home and mobile phone, TV package and broadband fees
Disclaimer: To apply for this account you must be aged 18 or over. UK resident. Not been declared bankrupt in last 6 years.
Why we like it: Earn rewards of up to £180 a year when you bank with Barclays - Get an annual loyalty reward of £84 plus £60 on your Barclays residential mortgage and £36 on your Barclays home and contents insurance. Start earning rewards with a monthly £3 fee based on £800 paid into your account and 2 direct debits paid out every month
Understanding current account interest rates
Current accounts interest rates vary considerably, but some current accounts pay highly attractive rates of interest – often better than many dedicated savings account.
The drawback is that current accounts tend to have relatively low deposit limits above which you will earn no interest. It is therefore usually sensible to keep as much of your savings as possible in a high-interest current account, then put the rest in a different current account or other type of savings account.
Current account generally have two different interest rates – the one they charge you when you are in credit and the one you pay when you are overdrawn. Different current accounts are likely to be more appealing that others depending on whether you tend to be in credit or not most of them time.
AER versus APR
When people talk about interest rates, they will usually refer to an interest rate that is a certain percentage AER or APR.
APR stands for Annual Percentage Rate and is usually quoted for the interest you will pay on loans and credit cards.
AER means Annual Equivalent Rate and is used for the interest you earn on your savings. AER is the amount you would earn if your interest was only paid once a year, whereas in reality current accounts usually pay interest monthly.
Compare current account interest rates
To find the best current account interest rates, you need to compare current accounts from all the top providers on the market. The current account comparison table at the top of this page makes this process quick and simple, allowing you to find a great deal with minimal hassle.
Below are three of the top current accounts available right now:
Santander 123 current account
This account offers 1.50% AER/1.49% gross (variable) on balances up to £20,000. You can also earn cashback of 1-3% on a variety of household bills. This includes payments on a Santander mortgage or insurance policy.
This account has a £5 per month account fee. You must make minimum monthly deposit of £500 and have two active Direct Debits to qualify for cashback.
TSB Classic Plus account
You can earn 3% AER interest paid monthly on balances up to £1,500 with a TSB Classic Plus account. You can also get £5 per month cashback if you have at least two direct debits from the account and another £5 per month when you use your debit card at least 20 times in that month.
There is no monthly account fee, but to earn interest you must pay in a minimum of £500 each month.
Nationwide FlexDirect current account
You get a market-leading 5% AER (4.89% gross p.a.) interest on balances up to £2,500 for the first 12 months with this account. However, the interest then drops to 1% gross p.a./AER (variable), so it may be worth switching to a different account after the first year.
There is no monthly account fee, but you won’t earn any cashback and you have to pay in at least £1,000 a month to earn interest.
