The best high-interest current accounts

The best high-interest current accounts

Looking for a decent interest rate for your current account? We look at the best options for earning interest on your in-credit balances.

lovemoney staff

Banking and Borrowing

lovemoney staff
Updated on 11 November 2022

If you’re looking for a place to stash your savings that offers a decent interest rate, one savvy option could be a high-interest current account.

While the vast majority of bank accounts pay little to no interest whatsoever, there are a few that actually offer even more generous rates than the best savings accounts.

But it’s worth stressing that the best high-interest current accounts are mostly ideal for small pots of cash and the headline rate is often reduced after a year, so you might need to switch again after 12 months to keep earning a top rate.

We'll now reveal which banks will pay you a generous rate on in-credit balances.

For those who spend more of the month in the red, see our top accounts for cheap overdrafts.

Barclays – 5.12%

If you have a Barclays current account and are part of the Blue Rewards scheme, you can get access to the linked Rainy Day Saver account, which offers 5.12% AER on balances of up to £5,000 (0.25% on balances over this amount).

The Barclays Blue Rewards scheme costs £5 a month but you can get £5 back when you pay out at least two Direct Debits every month.

To qualify for the scheme, you need to make sure £800 is paid into your linked account every month and register for online banking or the Barclays app.

You’ll also get cash rewards for having certain Barclays products with Blue Rewards – you can find out more here.  

Nationwide - 5%

Earlier this year, Nationwide dramatically hiked the rate on its FlexDirect current account for new customers from 2% to 5% AER.

Sadly, the rate is only available on the first £1,500 in the account and is fixed for the first 12 months (falling to 0.25% thereafter), meaning you can only earn a maximum of £75 interest in that time using this account.

However, we should point out that Nationwide does allow you to hold one account in a sole name and one in a joint name.That means a couple could hold three accounts between them and triple the amount earning 5% to £4,500.

To qualify for the rate, you will need to deposit at least £1,000 a month into the account.

As an added incentive, you can currently get £200 when you switch – find out more here.

If you're an existing FlexDirect customer, the bad news is Nationwide won't pass the rate hike on to you, meaning you'll still get just 2%. 

The best bank accounts for switching bonuses

Chase – 2.1%

Chase offers 2.1% interest on balances of up to £250,000 via its savings account, which is only available to those with a Chase current account.

You can also get 1% cashback for a year when you spend with your debit card and 5% interest on rounded-up savings.

There are also no fees when you use the Chase debit card overseas.

You can check out loveMONEY’s review of the Chase current account here.

Virgin Money - 2.02% 

The Virgin Money M Plus current account offers a decent rate of 2.02% but this is limited to the first £1,000 held in the account.

There's no minimum amount you have to pay in each month to qualify for the account.

On top of this, you also get access to a linked account offering 2.02% on balances of up to £25,000 and 1.51% on balances above this amount.

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