This comparison simply includes all savings accounts.
Interest Rates On Current Accounts
Why we like it: 5.00% interest for 12 months on balances up to £2,500 for the first year. You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else). 12 month fee-free arranged overdraft available. No monthly fee. Access to Flexclusives - Select Credit Card and low personal loan rate. 3.0% APR Representative. Must be aged 18 or older
Why we like it: Earn 1.50% AER (variable) interest on balances 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: 0.50% AER (variable) payable on your entire balance up to £2,000. Linked to instant access savings account currently paying 1.00% AER, paid quarterly. Zero transaction fees wherever you spend worldwide (arranged and un-arranged lending, other providers & other fees and interest may still apply). Apple Pay & Google Pay enabled contactless debit card. Rated ‘outstanding’ by Moneyfacts. Must be 18 or older and a UK resident. No account fee. No minimum funding required to open account or requirement to pay in regularly
Why we like it: UK & Europe Breakdown Cover, Worldwide family travel and mobile phone insurance, and commission-free cash withdrawals and card payments abroad. Free mobile banking app, text alerts and secure online banking. Access to Flexclusives - Select Credit Card and low personal loan rate. £13 monthly account fee
Why we like it: Everyday current accout. No monthly account fee. Access to Flexclusives - Select Credit Card and low personal loan rate. 3.0% APR Representative (terms and conditions apply)
Switching current accounts to get a better interest rate
Different current accounts can pay significantly different rates of interest, so it is worth checking to see if the account you have right now compares favourably to the market leaders. It is also sensible to compare other features and benefits, such as cashback as these can add up.
If you do decide to switch, it is good to know that you will most likely be able to take advantage of the Current Account Switch Service. This is a free service which will transfer any money in your account, plus all of your existing payments in and out of your old account to your new account.
This means it is fast, simple and hassle-free to move your current account to a new provider in order to benefit from better interest rates and other benefits.
What current account interest rates mean
When comparing current accounts, you should look at both the interest rate they pay when you are in credit and the interest rate they charge when you go into your overdraft. Which current account will be best for you is likely to depend on whether you tend to be in credit or in your overdraft on a regular basis.
When comparing interest rates that current accounts pay, you will normally see them quoted as a certain percentage “AER”. AER stands for Annual Equivalent Rate and is the amount of interest you would earn if the interest was taken annually. However, in reality most current accounts pay interest monthly.
Find the best interest rates on current accounts
When looking at changing your current account to find a better rate of interest, you need to compare what’s on offer from the widest range of banks and building societies possible. The free current account comparison tool at the top of the page makes this quick and easy to do.
The following three accounts offer some of the most attractive interest rates available right now:
Interest rate: 1.50% AER/1.49% gross (variable) on balances up to £20,000.
Account fee: £5 per month.
Other benefits: 1-3% cashback on various household bills, including payments on a Santander mortgage or insurance policy. You must deposit at least £500 a month into the account and have two active Direct Debits to qualify.
Interest rate: 3% AER paid monthly on a balance of up to £1,500.
Account fee: None, but you must pay in at least £500 a month to earn interest.
Other benefits: Earn £5 per month cashback when you have at least two Direct Debits from the account, plus another £5 in any month where you use your debit card at least 20 times.
Interest rate: 5% AER (4.89% gross p.a.) interest on balances up to £2,500 for the first 12 months with this account. After this the interest drops to 1% gross p.a./AER (variable).
Account fee: No account fee, but you must deposit a minimum of £1,000 a month to earn interest.
Other benefits: Fee-free overdraft for 12 months (for customers over 18 and subject to approval).