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 28 September 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.

Nationwide - 5%

Nationwide has recently 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 up to £125 when you switch – find out more here.

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

The best bank accounts for switching bonuses

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, and you can get 25% cashback on UK supermarket and fuel spend (up to £160) when you switch.

It’s worth stressing that you can only get 25% cashback for 60 days from the date you’re eligible to start earning cashback when you switch.

On top of this, you also get access to a linked account offering 1.71% on balances of up to £25,000 and 1% on balances above this amount.

Chase – 1.5%

Chase offers 1.5% 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.

Lloyds/Bank of Scotland - up to 1.5%

With the Club Lloyds and Bank of Scotland Vantage accounts, you can earn up to 1.5% AER on larger savings pots than the Nationwide and Virgin Money current accounts and up to 15% cashback with Everyday Offers.

Both accounts feature a tiered rate, paying 0.60% on balances between £1 and £3,999, and 1.5% variable on balances between £4,000 and £5,000.

To qualify, you need to pay in at least £1,000 into your account (or at least £1,500 for the Club Lloyds account), keep your balance above £0 and set up at least two different monthly Direct Debits.

If you pay in less than £1,500 a month into the Club Lloyds account, you’ll have to pay a £3 monthly fee.

With this account, you can choose an annual reward. You can choose either six cinema tickets, 12 digital movie rentals, an annual magazine subscription or an annual Gourmet Society membership.

At the time of writing, you'll get £150 when you switch to the Club Lloyds account – find out more here

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