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Compare high interest accounts

Some current accounts offer a higher rate of interest than standard accounts depending on your balance or the amount you’re able to pay in every month.

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Most popular Overdraft Interest rate Monthly account fee

Nationwide FlexDirect

Nationwide FlexDirect

  • 5% interest on balances up to £2,500
  • 12 month fee-free overdraft, then £0.50 per day
  • Telephone banking and free text alerts
More info
Overdraft
£0.50
per day
Interest rate
5.0%
AER
Monthly account fee
-
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

TSB Classic Plus Account

TSB Classic Plus Account

  • 5% AER on balances up to £2000
  • 5% cashback available on first £100 spent on qualifying purchases (ends Sept 2017)
  • To earn 5% AER pay in £500 a month and use internet banking paperless statements and paperless correspondence
More info
Overdraft
19.94%
EAR
Interest rate
5.0%
AER
Monthly account fee
-
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

Nationwide FlexPlus

Nationwide FlexPlus

  • 3% interest on balances up to £2,500
  • 3 month interest free overdraft, then £0.50 per day
  • Worldwide travel cover, mobile phone insurance for the family, and commission free cash withdrawals abroad
More info
Overdraft
£0.50
per day
Interest rate
3.0%
AER
Monthly account fee
£10
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

Santander 123 Current Account

Santander 123 Current Account

  • 1.5% interest on balances up to £20,000
  • 1% cashback on water and council tax, 2% cashback on gas and electricity, 3% cashback on mobile and internet, phone and TV
  • No arranged overdraft fee for the first four months, then £1 per day
More info
Overdraft
£1
per day
Interest rate
1.0%
AER
Monthly account fee
£5
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

B current account

B current account

  • 0.5% interest up to £2,000 – 0% thereafter
  • current rates until 30th November 2016
More info
Overdraft
12.5%
EAR
Interest rate
0.5%
AER
Monthly account fee
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

What is a high interest current account?

A high interest current account is much like a standard current account, offering many of the same features for everyday usage, but you will earn higher than normal interest (AER) on the money you have deposited with the account.

What’s high interest?

From 2009 interest rates fell to record lows, which was good news for borrowers, but bad news for savers.

Many current accounts stopped paying interest altogether, so realistically any current account that pays interest at all is a ‘high interest’ current account. But typically high interest rates for current accounts will be 1-5%.

What’s the catch?

Most high interest accounts will only pay interest on certain balances (eg 5% up to £2,000, 0% on everything above this), require a minimum deposit each month, or sometimes even charge an annual or monthly fee to enjoy access to high interest rates. So it’s worth making sure that any high interest account is suitable for you, and that you’ll actually be earning interest on your deposits.

How can I get the highest rates?

It’s as simple as shopping around and comparing different accounts. But be careful if the interest with a current account seems too good to be true.

It’d be very unusual to be paid an interest rate of more than 5%, and if you are being offered over 5% you should carefully read the full terms and conditions and do a background check on the company. Namely checking they are an ‘authorised firm’ with the government’s Financial Services Compensation Scheme (FSCS).

After the financial crash your deposits up to £85,000 (shrinking to £75,000 in 2016) are guaranteed by, in the unlikely event of your bank going bust. However, not all banks offering accounts are authorised with the FSCS.

Some companies may advertise something that looks like a high interest account, but is actually a riskier investment product which won’t enjoy this government guarantee for your money. This is especially something to watch out for with accounts that offer unusually high interest.

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