Compare High Interest Current Accounts
High Interest Current Accounts
Why we like it: Unlimited payments and withdrawals. Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older
Why we like it: Instant access to your savings. Unlimited deposits and withdrawals. Interest paid monthly, either to a linked current account, or adding it to your Online Flexi Saver account. Easy application process, you just need a UK mobile phone and UK driving licence or passport. Manage account online. Maximum balance £250,000. Must be aged 18 or older and have a UK address. Must have a linked UK current account. Your eligible deposits with Investec Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Which? Recommended Savings Provider. No notice period. Deposit from £100. Interest paid monthly or annually. Apply in minutes. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services. Compensation Scheme (FSCS)
Why we like it: Save from £1. Unlimited payments and withdrawals. Interest paid annually. Open in a single or a joint name. Maximum deposit £500,000. Open and manage account online. FSCS Protected. Must be UK resident. Must be aged 16 or older
Why we like it: Choose monthly or annual interest payments. Unlimited deposits and withdrawals. 24/7 access to your savings. Open and manage online. After 12 months the rate will revert to the underlying rate, currently 1.45% gross/AER variable. Post Office Online Saver is provided by Bank of Ireland UK. Must be UK resident. Must be aged 18 or older. FSCS protected
Why we like it: The Home Deposit Saver lets you earn a competitive rate of interest whilst building up the deposit needed for your first or next home. £500 bonus to boost your savings if you receive a residential purchase mortgage offer from Leeds Building Society. Interest paid annually. Open and manage online. FSCS Protected. You can only pay in up to £500 in a single month. Withdrawals are limited to 1 each year. You can deposit up to £30,000 in total. Bonus eligibility criteria apply. Must be UK resident and be aged 18 or older
Why we like it: All funds deposited into the RCI Bank E-Volve Savings 14 Day Notice Account will be used to fund pure electric vehicles and charging facilities. Interest paid monthly or annually. Manage account online. UK-based support, seven days a week. Which? Recommended Savings Provider. Unlimited withdrawals subject to 14 days notice. Must be UK resident. Must be aged 18 or older. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Unlimited deposits and withdrawals. Interest paid monthly: can be added to your Notice Saver or paid to your linked account. Easy application process, you just need a UK mobile phone and UK driving licence or passport. Manage account online. Maximum balance £250,000. Withdrawals subject to 90 days notice. Must be aged 18 or older and have a UK address. Must have a linked UK current account
Why we like it: The interest rate tracks the Bank of England (BoE) Base Rate. Interest is calculated on the minimum daily balance and applied to the account on the first day of every subsequent month. Open and manage account online. Your eligible deposits are protected up to £85,000 by the Financial Services Compensation Scheme. The maximum deposit you may pay into any one OakNorth Account is £500,000. The maximum amount (excluding the interest) that you will be allowed to hold on deposit with OakNorth Bank across multiple accounts is also £500,000. Unlimited withdrawals, subject to 95 days notice. Available to individuals, aged 18 or over, who are UK residents
Why we like it: Interest paid at maturty. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: 9 month term, minimum deposit £1,000, no withdrawals permitted. FSCS Protected
Why we like it: Interest paid on maturity. Automatic repayment to your linked account. Maximum deposit £250,000. FSCS Protected. Must have a UK residential address and be aged 18 or older. No withdrawals permitted
Finding the best high interest current accounts
Banks & building societies are offering customers higher than average savings account interest rates if you can be tempted to switch your banking.
With a number of banks keen to attract new customers some high-interest current accounts are paying competitive interest. These accounts have different criteria and we have summarised below some of the most attractive accounts currently on offer:
first direct 1st Account »
Get £175 for switching, and then earn 7% AER/gross on linked regular savings account.
- £175 when switching to first direct as a new customer
- 7% AER/gross for 12 months, available to first direct 1st Account customers who open a new Regular Saver account, saving between £25 and £300 per month
- No minimum monthly funding
- No monthly fee
- £250 interest free overdraft (subject to status)
- Money banking app
- UK based contact centre
- FSCS Protected
For more information and to apply for first direct 1st Account
Santander Everyday Account »
Fee free account for everyday needs.
- No minimum monthly funding
- No monthly fee
- Get cashback, vouchers, prize draws and other offers personalised to you when you use Santander Boosts
- Mobile banking app
- Arrange overdraft facility available (subject to status)
- FSCS Protected
For more information and to apply for Santander Everyday Account
Santander Edge Up Account »
3.50% AER interest on balances up to £25,000 and cashback available.
- 3.50% AER/3.45% gross (variable) on balances up to £25,000
- 1% cashback (up to £15 a month) on selected household bills when you pay by Direct Debit
- 1% cashback (up to £15 a month) at supermarkets and on travel costs when you use your debit card (exclusions apply)
- Make international payments with no extra fees
- £5 monthly fee
- Must pay a minimum of £1,500 into the account each month
- Arranged overdraft facility (subject to status)
- FSCS Protected
For more information and to apply for Santander Edge Up Account
HSBC Advance Account »
Earn 5% AER/gross on linked regular savings account.
- 5% AER/gross for 12 months, available to HSBC customers who open a new Regular Saver account, saving between £25 and £250 per month
- No minimum monthly funding
- No monthly fee
- £1,000 overdraft (subject to status)
- Money banking app
- Must deposit at least £1,500 into account
- FSCS Protected
For more information and to apply for HSBC Advance Account
High Interest Current Accounts
Traditionally, savings accounts have had higher rates of interest than current accounts.
However, in this era of ultra-low base interest rates, most savings accounts offer very low rates of interest, and some of the best credit interest rates are actually offered on current accounts at present.
As of February 2021, some of the accounts that pay interest at the highest levels were offering rates of around 2%, better than for many savings interest accounts.
Criteria applying to the higher interest rate
Before signing up to a high-interest bank account, you also need to read the small print carefully and examine just how good the ‘higher interest rate’ promise really is. For example:
- You might need to make a minimum monthly level of payment into the account and/or a specified number of payments during the month to get the advertised interest rate
- The advertised higher rate might only last for 12 months or so, after which the rate might drop dramatically. This means that if you still want an account paying a higher rate, then you might have to repeat the account switching process every year
- The higher rate might only apply to the first £1,000 or £2,000 of your balance
- You may have to pay a monthly fee to maintain the account
- There may be a requirement to open a savings account with the bank at the same time
- Some of the higher interest accounts don’t allow you to have an interest-free overdraft
The application process
Most major banks have signed up for the Current Account Switch Guarantee, under which they promise to take care of the entire process and to transfer all of your direct debits and standing orders to the new account within seven days.
They should give you a refund if anything goes wrong and you are left out of pocket as a result.
Your new bank account should give you access to a debit card, an online banking account and a mobile banking app.
Current accounts require you to provide proof of identity and proof of address at the application stage. For example, you might provide a passport or driving licence as proof of identity and a utility or council tax bill as proof of address.
The bank will consider your credit score and other factors when deciding whether to accept your current account application.
They will run a credit check, and your credit file will show that this check has been carried out.
Other things to consider
The prospect of earning some interest on your money is undoubtedly attractive, but it’s not the only thing you should consider when choosing a current account provider.
Before you automatically apply to the bank offering the highest current account interest rate, consider:
- You might want a bank that has a local branch
- It might be important for you to find an account with favourable overdraft rates
- You might be interested in whether cashback is available
- Do you travel regularly – are there foreign transaction fees?
- Would you prefer a packaged account, where you get insurance and other benefits in exchange for a larger monthly fee?
