Ditch these current accounts today

More than half the current accounts on the market pay absolutely no interest. If your current account is one of them, it's time to switch...

You’d have to have had your head under a rock for the past couple of years not to know that savers are getting a pretty raw deal right now. Following a significant cut in the Base Rate, banks have been quick off the mark to lower the interest rates on their savings accounts.

However, it’s not just savings accounts that have taken a severe bashing. Current accounts are also being impacted by low interest rates. In fact, according to Moneyfacts, a whopping 63% of current accounts offer absolutely no credit interest at all. That’s right, none, zilch, a big fat zero!

The worst current accounts

According to Moneyfacts, there are 84 current accounts on the market that are currently NOT paying any interest. But no need to rush off to find out whether your current account is one of those, as I've done the hard work for you! The table lists all of the current accounts that pay zero interest at the moment, in alphabetical order by provider:

Lender	Account Name
Bank of Ireland UK	Clear Account Level 2
Bank of Ireland UK	Clear Account Level 1
Bank of Ireland UK	Graduate C/A
Bank of Scotland	Ultimate Reward Current A/c
Bank of Scotland	Current Account
Bank of Scotland	Reward Current Account
Bank of Scotland	Reward Current Account
Barclays Bank	Graduate Additions
Barclays Bank	Additions Active
Barclays Bank	Current Account Plus
Barclays Bank	Bank Account
Barclays Bank	Higher Education Account
Barclays Bank	Student Additions
Barclays Bank	Bank Account
Butterfield Private Bank	Private Bank Account
Cater Allen Private Bank	Sterling Bank Account
Citibank	Citibank Access
Citibank	Citibank Plus
Clydesdale Bank	Signature Current A/c
Clydesdale Bank	Current Account Plus
Clydesdale Bank	Student Account
Clydesdale Bank	C/A Plus Offset
The Co-operative Bank	Privilege Premier
The Co-operative Bank	Privilege
The Co-operative Bank	Privilege Premier
The Co-operative Bank	Privilege
The Co-operative Bank	Student
The Co-operative Bank	Current
The Co-operative Bank	Current Account Plus
Coutts & Co	Current
Cumberland BS	Standard Current A/c
first direct	1st Account
First Trust Bank (NI)	Classic Account
First Trust Bank (NI)	Graduate Account
First Trust Bank (NI)	Student+ Account
HSBC	Bank Account Pay Monthly
HSBC	Graduate Bank Account
HSBC	Bank Account
HSBC	Advance
HSBC	Premier Bank Account
HSBC	Gap Year Bank Account
Halifax	Reward Current Account
Halifax	Current Account
Halifax	Ultimate Reward Current A/c
Halifax	Reward Current Account
Hoare & Co	Current
Marfin Laiki Bank	Current Account
Lloyds TSB	Silver Current
Lloyds TSB	Premier Current A/c
Lloyds TSB	Islamic Student Account
Lloyds TSB	Platinum Current
Lloyds TSB	Graduate
Lloyds TSB	Islamic Graduate Account
Lloyds TSB	Gold
Lloyds TSB	Classic
Lloyds TSB	Student
Lloyds TSB	Classic with Control
Nationwide BS	FlexAccount
Nationwide BS	FlexAccount
NatWest	Current Plus
NatWest	Current Plus - Adv Blue
NatWest	Graduate
NatWest	Advantage Gold
Norwich & Peterborough BS	Gold Current
Norwich & Peterborough BS	Gold Current
Norwich & Peterborough BS	Gold Current
Royal Bank of Scotland	Royalties
Royal Bank of Scotland	Royalties Gold
Royal Bank of Scotland	Graduate Royalties
Royal Bank of Scotland	Current Account
Royal Bank of Scotland	Private Bank Account
Santander	Student Current Account
Santander	Preferred Overdraft Rate A/c
Santander	Graduate Account
Santander	Postgraduate Account
State Bank of India	Current Account
Ulster Bank	Current
Weatherbys Bank Ltd	Current Account
Whiteaway Laidlaw Bank	Personal Current Account
Yorkshire Bank	C/A Plus Offset
Yorkshire Bank	Signature Current A/c
Yorkshire Bank	Current Account Plus
Yorkshire Bank	Student Account

Source: Moneyfacts.co.uk

I'd like to highlight the banks and building societies which crop up more than once because they offer several different current accounts which pay no interest. So boo hiss to Bank of Ireland, Bank of Scotland, Barclays, The Co-operative, First Trust Bank, HSBC, Halifax, Lloyds TSB, Nationwide, Natwest, Norwich & Peterborough, Royal Bank of Scotland, Santander and Yorkshire Bank - shame on you!

If you have a current account with one of these lenders, check the table carefully because there’s a good chance you’re not receiving any interest.

Does it matter?

Of course, you could argue that a current account doesn’t exist to earn you interest. After all, that’s what a savings account is for, so does any of this really matter? However, I would argue that yes, it does. There are still current accounts on the market that DO pay interest. So why put up with one that doesn’t?

What’s more, the interest rates on certain current accounts are BETTER than you’d get on most savings accounts! So if you do have a current account that’s not giving you anything extra, it’s time to switch to one that does. Below, I’ll reveal three of the top current accounts in town.

Super Santander

A good place to start is the Santander Preferred In-Credit Rate Account. This account offers a fabulous interest rate of 5% on balances up to £2,500.

Of course, as you’d expect, there are a few catches. Firstly, to qualify for the 5% you will need to pay £1,000 into the account each month. Fail to do so and you’ll be back to earning nothing. You will also need to transfer over all your direct debits from your existing current account – however, Santander will do the hard work for you with its switching service.

And lastly, the 5% interest rate is only valid for one year – after which point, the rate drops to 1% (although this is still more than a lot of current accounts are paying!).

What's more, some lovemoney.com readers have complained about Santander's customer service in the past, so we always post a warning about this on their accounts.

Still, you may feel that earning 5% for a year offsets any of these drawbacks.

Luscious Lloyds TSB

Another option to consider is the Lloyds TSB Classic Account with Vantage which pays an impressive 4% interest. The drawback to this account is that you will only receive the 4% on balances between £5,000 and £7,000 – so you will need to keep a fairly decent sum of money in your current account. On the plus side, this is a permanent rate of interest, so it’s not going to disappear after a year.

Bear in mind that you will need to pay £1,000 into your account each month.

Heavenly Halifax

Finally, the Halifax Reward Current Account will give you £5 every month you pay in £1,000, whether you’re in credit or overdrawn.

What’s more, if you open this account, you’ll also be able to get an extra 0.20% in interest on theHalifax Web Saver Extra which offers a competitive interest rate of 2.50% - allowing you to earn an even more competitive 2.70%. (Bear in mind you can only make one penalty-free withdrawal per year with this savings account.)

You can find out more about all three of these accounts in Earn 4% on instant access savings.

So if your current account isn’t rewarding you, make sure you get switching today!

Compare current accounts at lovemoney.com