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This comparison simply includes all savings accounts.

Santander
Everyday Current Account Santander
Open With £1
Account Type Current Account
Features Fee FREE Account Earn up to 15% cashback

Why we like it: No minimum monthly funding or monthly fee to maintain the account. Earn up to 15% cashback with Retailer Offers. 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. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Nationwide
FlexAccount Current Account Nationwide
Open With £1
Account Type Current Account
Features Fee FREE Account

Why we like it: Everyday current accout. No monthly account fee. Access to Flexclusives - Select Credit Card and low personal loan rate. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Starling Bank
Mobile App Bank Account Starling Bank
Open With £0
Account Type Mobile Bank Account
Features Fee FREE Account Pays 0.05% AER

Why we like it: Free current account. Pays 0.05% AER interest on balances up to £85,000. Get set up in minutes. Send money abroad: Fast and secure money transfers to bank accounts in 38 countries worldwide. No fees when you pay with your card abroad or withdraw money. Get a spotlight on your spending: See what you’ve spent instantly with real-time payment notifications. 3 month interest holiday on the first £500 of an arranged overdraft. Best British Bank and Best Current Account in 2020 at the British Bank Awards. Awarded 5 stars by Defaqto. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Santander
123 Current Account Santander
Open With £500
Account Type Childrens Current Account
Features 0.30% AER Interest Up To £20,000 £5 pm Account Fee

Why we like it: Earn 0.60% AER (variable) interest on balances up to a maximum of £20,000. Up to 3% CASHBACK on various household bills. Monthly fee of £5. Cashback capped at £5 for each cashback tier each month. Must pay in £500 pm. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Nationwide
FlexDirect Current Account Nationwide
Open With £1000
Account Type Current Account
Features 2% AER Interest (T&Cs)* Fee Free Account

Why we like it: *2.00% interest for 12 months on balances up to £1,500 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. Must be aged 18 or older. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Nationwide
FlexPlus Current Account Nationwide
Open With £1
Account Type Current Account
Features Free insurance £13 pm Account Fee

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. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000

Santander
123 Mini Current Account Santander
Open With £0
Account Type Childrens Current Account
Features Children 18 or under 3% AER Interest (T&Cs)

Why we like it: Can be opened by or on behalf of any child up to the age of 18. Debit or cash card available for those aged between 13 and 18. 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 18 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

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:

Santander 123 Current Account

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.

TSB Classic Plus Account

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.

Nationwide FlexDirect Current Account

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).

Latest news

Top 3 picks for current accounts in 2021

Over 5.1 million UK bank and building society customers have switched their bank accounts using the free (and guaranteed) current account switching service which simplifies the process for customers. Read More »

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Simplysavingsaccounts.co.uk is a trading style of Fair Investment Company Ltd.

We've been comparing savings and current accounts for many years so you can trust you're in good hands.