Compare High Interest Current Accounts
High Interest Current Accounts
Why we like it: SPECIAL OFFER - Get £175 when you switch to a First Direct 1st Account. You also get access to a 7% AER/gross fixed for 12 months Regular Saver Account if saving between £25 and £300 a month (up to £3,600 per year). £250 interest-free overdraft (subject to status). No minimum monthly funding and no monthly account fee. No first direct fees for when spending abroad, withdrawing cash from the UK or when making a debit card payment in a foreign currency in the UK. Mobile banking app. UK based contact centre. For the £175 switching cash offer you need to open a 1st Account, switch your everyday banking to us using the Current Account Switch Service and pay in at least £1,000 within three months of opening the account. This offer is only available to new First Direct customers, or HSBC customers who haven't opened an account since 1 January 2020
Why we like it: No minimum monthly funding or monthly fee to maintain the account. Get cashback, vouchers, prize draws and other offers personalised to you when you use Santander Boosts (you must have a personal Santander debit or credit card, be 18 years or over and be registered for Online and Mobile Banking). Stress-free account switching in 7 days with the Current Account Switch Service. £300 ATM withdrawal per day, Arranged Overdraft facility (subject to status). Online and Mobile Banking with text and email alerts. Must be 18 or older and live in the UK permanently. 39.94% EAR overdraft charge.
Why we like it: Earn 1% cashback every month on selected household bills paid by Direct Debit, capped at up to £10 each month and 1% cashback every month on supermarket and travel spend when you use your debit card, capped at £10 each month. Access to Santander Edge Saver with 7.00% AER / 6.78% gross (variable) interest up to £4,000 with 2.50% AER / 2.47% gross (variable) bonus rate for the 12 months from opening. Get cashback, vouchers, prize draws and other personalised offers when you use Santander Boosts (must have a personal Santander debit or credit card, be 18 years or over and be registered for Online and Mobile Banking). No fees or charges for international payments or CHAPS payments. Arranged overdraft interest rate of 39.94% APR/EAR (variable). For cashback offer you must pay a minimum of £500 into your account each month, have 2 active Direct Debits, be over 18 and live in the UK permanently. Paper-free account. £3 monthly fee
Why we like it: Free current account. Pays 0.05% AER interest on balances up to £85,000. Get set up in minutes. Which? Banking Brand of the Year 2023
Why we like it: Earn 1% cashback on your everyday debit card including contactless spending. Available for your first 12 months for new customers. Max £15 per month. Cashback exceptions apply. Access to a Chase saver account paying 4.1% AER (4.02% gross) variable. Interest earned daily and paid monthly. Easy access to your money with no minimum opening balance. 5% interest on a round up account- choose to round up your spending to the nearest £1 and you'll get 5% AER (4.89% gross) variable interest on your round up account, paid monthly. Zero fees from Chase when you use your Chase debit card, both at home and away. No ATM fees applied by Chase. Open extra current accounts in seconds, for free. Use them to spend from, pay bills with Direct Debits, budget, and set aside money in the way that works best for you. Must be 18+, be a UK resident and have a smart phone and UK mobile number. No account opening fees and no monthly fee. No minimum monthly funding. In-app card control - you decide how and where your card works. You can stop it from making contactless or gambling payments, from working abroad, or from making cash withdrawals. Numberless card - your card details are stored in the app, so no one can see them but you. 24/7 customer support- either over the phone or by in app messaging
Why we like it: 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 (the bank receiving the payment may still apply charges). There's also no charge for making CHAPS payments from this account. No fees for using Santander Edge Up debit card to withdraw cash and make payments outside the UK in the local currency. Get cashback, vouchers, prize draws and personalised offers with Santander Boosts , free rewards service. Online and Mobile Banking available with text and email alerts. Must be 18 or older and live in the UK permanently. £5 monthly fee for maintaining the account that will automatically be taken from the account each month. Must pay a minimum of £1,500 into the account each month. Must have 2 active Direct Debits. Arranged overdraft facility (subject to status). If you use an arranged overdraft you’ll be charged an interest rate of 39.94% APR / EAR (variable). Online and Mobile Banking available with text and email alerts
Why we like it: Can be opened by or on behalf of any child up to the age of 17. Debit or cash card available for those aged between 13 and 17. Monthly interest. No monthly fee. For children under age 13, the account must be opened in trust and managed by an adult (trustee). If you’re aged between 13 and 17 years old and live permanently in the UK you can apply online by telephone or in branch. No overdraft facility. 1% interest on the entire balance once the balance is £100, 2.00% AER/1.98% gross (variable) on the entire balance once the balance is £1,500, 3.00% AER/2.96% gross (variable) on the entire balance once the balance is £1,500 or over (up to a maximum of £2,000). Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000
Why we like it: A free 4-year Santander 16-25 Railcard worth £100 plus a total average saving of £636 (average saving of £159 per year). An interest-free and fee-free Arranged Overdraft, up to £1,500 in years 1-3, then up to £2,000 if you stay on to year 5. Get cashback, vouchers, prize draws and other offers personalised to you when you use Santander Boosts (you must have a personal Santander debit or credit card, be 18 years or over and be registered for Online and Mobile Banking). No monthly account fee. Must be over 18 and live in the UK permanently Must be studying or are about to begin an undergraduate course that is at least 2 years in length, or level 4 to 7 apprenticeship. If you’re about to begin your course, you must have an ‘unconditional’ or ‘confirmed conditional’ offer (i.e. you have your exam results) before you apply. You must pay in at least £500 every 4 months and must not already have an existing Santander current account. If you do, you’ll need to transfer it
Why we like it: SPECIAL OFFER: 3 months of free Revolut Premium trial instead of a cash award. Open a current account in minutes direct from your phone and receive bank card. Set budgets, get instant spending notifications, and see weekly insights to keep your spending on track. Earn rewards on travel, retail, restaurants and more. Spend abroad in over 150 currencies at the Real (interbank) exchange rates with no hidden fees. Transfer money abroad in 30+ currencies with the interbank exchange rate, with a small 0.5% fee for anything above £1,000 each month. Get paid up to 0.40% AER interest on your GBP funds. No minimum amounts. Deposit and withdraw your money whenever you want. 7x better than the banks at stopping card fraud. 0.5% fee for any international spending or transfers above £5,000 each month. 2% fee for international ATM withdrawals of more than £200 per month. Monthly fee of £0, £2.99, £6.99 or £12.99 depending on account features
Why we like it: Open a GBP and EUR current account using your mobile in minutes, with no credit checks and no proof of address required. Track your account activity in real-time, get an overview of your monthly outgoings, set budgets and set your savings aside from your day-to-day spending. Get instant updates on your mobile whenever you receive or spend money. Add money to your account instantly by debit card or bank transfer. Spend on your Monese card worldwide with no fee and make ATM withdrawals with fee-free limits with money-saving exchange rates. Send money to your contacts and request payments from them. You can also save when you transfer money abroad (from 0.5% fee) at the wholesale currency exchange rate. Transfers between Monese accounts are also free and instant. You can use your Monese app in any one of 12 languages. Accident, sickness, unemployment protection, hospital stay and purchase protection all available
Why we like it: Children’s pre-paid debit card account. Can be opened on behalf of any child from the age of 6 to 18. With the GoHenry prepaid debit card and app, kids learn how to budget—and grow to understand the difference between wants and needs by spending wisely. Parents can help guide their progress with real-time updates, customisable controls and more. Kids and teens can gain skills in the app, learning about investing, credit and more. Then apply their knowledge with their real money. Now with new lessons for kids aged 12+. 92% of parents say their kids are more money confident since joining GoHenry. Choose from 45+ card designs—and personalise it with your child’s first name, too. Covered by your account’s FSCS protection up to £85,000. 30 days free, then £2.99/month. No overdraft facility
Why we like it: Children's pre-paid bank account. Can be opened on behalf of any child 3 years. Debit card available for the child from ages 6 to 17, with Pocket Money app. Set up with real or virtual money. Keep track of spending. Unlock extra features like Chore Manager - teach your kids the importance of earning money. Great for teaching kids good money habits from a young age. Manage all pocket money in one place. Help your kids make spending decisions when out & about. A child friendly interface that empowers and encourages kids to engage with their money. Safe and secure card. You’re still the primary account holder, so you are covered by your account’s FSCS protection up to £85,000. Monthly fee's start from zero to £1.99 per month. No overdraft facility
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?
