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Compare high-interest current accounts

Earn interest on your current account balance

Some current accounts pay interest on your balance or the amount you pay in every month. Find one that makes your money work for you.

Find high interest current accounts

We compare high interest accounts from leading providers
Fact checker
Last updated
January 10th, 2024

High interest current account deals

2 results found, sorted by interest rate.

Santander Edge Up

Overdraft interest rate
39.94%EAR
AER
3.50%
Monthly fee
£5
Joint account
Yes
Representative example:
If you use an arranged overdraft of £1,200 you will be charged 39.94% APR Representative/EAR variable. Subject to financial status. How does this overdraft compare? Representative APRs help you compare the cost of different credit products.
More Information
Additional information
  • Limited offer: existing Santander Edge Up current account customers could get £18 when they open a Santander Edge credit card between 21 May and 2 July 2024. T&Cs apply.
  • 1% cashback (up to £15 a month) at supermarkets and on travel costs when you use your debit card (exclusions apply).
  • You can make international payments with no extra fees (the bank receiving the payment may still apply charges). There’s also no charge for making CHAPS payments from this account.
  • Get cashback, vouchers, prize draws and other offers personalised to you when you use Santander Boosts. To be eligible for Santander Boosts, you must have a personal Santander debit or credit card, be 18 years or over and be registered for Online and Mobile Banking.
  • 1% cashback (up to £15 a month) on selected household bills when you pay by Direct Debit.
  • It’s free to use your Santander Edge Up debit card outside the UK – learn more in the ‘Travel’ section below.
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Minimum Monthly Credit£1,500
Permanent UK Resident

Chase Current Account

Overdraft interest rate
-
AER
1.00%
Monthly fee
No
Joint account
No
Representative example:
N/A - no credit facility offered.
More Information
Additional information
  • 1% cashback on everyday debit card spending. Available for your first 12 months as a new customer. Max £15 per month. Cashback exceptions apply.
  • No fees at home or abroad from Chase.
  • Linked to an instant access saving account (£25,000 daily external transfer limit)
  • Access to round-up account with 5% AER (4.89% gross) variable interest rate, paid monthly. Round-up balance transfers to elected Chase account on anniversary of account opening. T&Cs apply.
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
Uswitch Limited is a credit broker, not a lender, for consumer credit.
Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

How high-interest current accounts work

High-interest bank accounts are exactly what the name implies: current accounts that offer relatively high interest rates on your balance.

These accounts gained popularity in recent years because of historically low interest on savings accounts so banks and other providers used them as an incentive to attract new customers.

However, many savings rates have now overtaken those offered by current accounts.

High-interest bank accounts often come with a catch. They may have certain requirements for you to be eligible to earn interest, such as a minimum monthly deposit amount, a time limit on the interest deal, or an upper limit on how much of your balance will earn interest.

For example, if the bank offers 5% interest on up to £1,500 this means you could have £5,000 in the account but only earn interest on the first £1,500.

That said, they can be a good option if you meet those requirements, but bear in mind that you could earn more in a savings account.

Pros and Cons

Pros

Interest rates may be higher than on some savings accounts or ISAs
You have the added convenience of a current account, so have easy access to your money
You don't need to have a good credit score to apply

Cons

There are typically limits on how much of your balance interest will be paid on
The interest offered may be time limited
You may have to deposit a monthly minimum sum into your account

How to find the best high-interest current account

Compare high-interest accounts

Compare deals from different providers to find which bank offers the highest interest rate.

Check eligibility criteria

Make sure you meet all the requirements to get the highest interest rate offer.

Apply

Fill out the application for your chosen bank and provide the required proof of ID documents.

High interest current accounts can offer higher interest rates than some ISAs, helping you make your money work for you as you carry out day-to-day banking. It's a good idea to check you're happy with any potential minimum monthly deposits that could be required though.

How do bank interest rates work?

Interest rates are linked to the Bank of England base rate. The higher the base rate, the higher the interest rates on savings, but also on debt products like credit cards and mortgages.

Banks use the Bank of England base rate as a guide to how much interest they charge or reward you with on their products. They don't just have one set rate, but have different rates for different products.

The interest rate you’ll be paid by your bank on your deposits is known as the Annual Equivalent Rate (AER). Getting the high interest rate on a particular account may depend on:

  • How long you’ve had the account

  • How much money you have in your account

  • The amount you pay in every month

When you’re looking for the best current account interest rates, make sure you’ll meet the bank’s criteria to secure the high interest rate. Some offer you a higher interest rate for an introductory period then a much lower rate after that. 

There are also current accounts that let you open a linked high-interest savings account rather than getting the interest from the current account itself.

FAQs

What does high interest mean?

What constitutes high interest depends on the state of the market at the time. Interest rates can change, going either up or down. 

By using our comparison tool, you'll be able to view current interest rates and find an account that best suits your needs.

Is the interest rate fixed?

Not necessarily – it could go up or down. Some banks may also only offer the higher interest rate up to a certain balance.

For example, if you have £5,000 in your account, a provider may offer 5% on the first £1,500 but 0% on anything more.

Can I access my money any time?

Yes. While it may offer interest, it’s still a current account, offering all the features and services that a regular current account would. You can access your money as you see fit, like you would with any current account.

Will I have to pay a fee?

Possibly. Some high-interest accounts do charge a monthly fee but, in some cases, it’s refunded if you meet certain requirements set by the provider.

How often is the interest paid?

Typically, high-interest current accounts pay you interest monthly.

Do I need a good credit score?

You don't necessarily need a good credit score in order to open a high interest current account. Banks will run a credit check on you if you apply, but this type of account rewards deposits and a cash balance and so may be considered as less of a risk than an account with a large overdraft for example.

Is a high interest account better than a savings account?

Whether a high interest current account is better than a savings account depends on your personal circumstances and what you're looking to do. A high interest current account offers all the features of a typical current account alongside higher interest rates. But the rates may be capped or a fee may be charged each month for having the account. Savings accounts don't work like current accounts, but they may not come with limits on how much you can make in interest. If you're considering one or the other then it might be a good idea to read up the full details for both types of account first.

About the author

Salman Haqqi
Salman Haqqi has over a decade of experience as a journalist in several countries around the world. In recent years, he has turned his focus to helping people make confident financial decisions and regularly comments in the media about personal finance.

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