High Interest Bank Accounts

Some of the UK's top banks offer current accounts that pay interest at rates that beat the best savings. Look at the rates on offer, the limits on balances and other account requirements to get the best deal for your money.

Use the table below to compare high interest bank accounts and find the top one for you.


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SORT RESULTS
All Accounts
High Interest
Cashback
Packaged
Overdrafts
Basic Accounts
Monthly balance:
£1,000
£0
£750
£2,000
Monthly overdraft:
£0
£0
£500
£1,000
Days overdrawn:
0 days
0 days
15 days
31 days

Based on your input
SORT DEALS BY: Annual Earnings Annual Overdraft Cost Monthly Fee Total Earnings/Costs (annually)
HSBC Advance
advance
  • 6 month interest and fee free overdraft
  • To be eligible for HSBC Advance, you will need to pay in a minimum of £1,750 per month
  • Earn credit interest with a Regular Saver account
  • Get £200 when you switch and stay with HSBC Advance
1st year:
£200
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£200
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: Preferential Overdraft Interest Rate. 17.9% EAR.
Clydesdale Bank B
b
  • Current Account and Instant Savings account combined
  • Overdraft available (subject to status)
  • Mobile, Internet and Telephone banking
  • Grace period of 2 working days per calendar month if you go overdrawn
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: Planned borrowing: 12.50% EAR. Grace period of 2 working days if you go overdrawn
Yorkshire Bank B Current Account
b current account
  • Earn 0.25% AER (0.25% gross p.a variable) on credit balances up to £2,000 in the B current account
  • 0.50% AER, (0.50% gross p.a. variable) paid quarterly on all credit balances in the B Instant Savings account
  • Overdraft available subject to status
  • Grace period of 2 working days per calendar month if you go overdrawn
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: Planned borrowing: 12.50% EAR. Grace period of 2 working days if you go overdrawn.
TSB Classic Plus Account
classic plus account
  • 3% AER variable interest on balances up to £1,500
  • No monthly fees
  • Earn £5 cashback for having two direct debits per month, plus another £5 cashback if you spend with your debit card 20 times a month
  • £25 interest and fee-free planned overdraft (subject to application and approval)
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

APPLY ONLINE
Representative example: Overdraft interest rate on the first £25: 0% EAR* variable. The overdraft interest rate on the next £1,175 will be 19.84% EAR* variable and a Monthly Overdraft Usage Fee of £6 will apply.
Virgin Money Essential Current Account
essential current account
  • No charge for unpaid Direct Debits or standing orders
  • Earn 0.75% Gross AER (variable) interest on balances up to £100,000
  • No overdraft option
1st year:
£0
2nd year:
£0
N/aNone1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Nationwide FlexDirect
flexdirect
  • 5.00% AER in-credit interest on balances up to £2,500 (fixed for the first 12 months)
  • No arranged overdraft fees for the first 12 months
  • No monthly fee
  • Visa debit card
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

APPLY ONLINE
Representative example: If you use an arranged overdraft of £1,200 the amount you will be charged is 50p per day (variable).
Cumberland Plus
plus
  • Internet and Mobile banking
  • Overdraft available (subject to status)
  • Use your card for free worldwide
  • Minimum monthly deposit of £750, otherwise a charge of £2 per month will be applied
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: If you are overdrawn by £550 for 15 days you will pay interest at 9.99% variable. The total charge for this credit would be £2.75.
First Trust Bank Plus Account
plus account
  • Credit interest if you pay in at least £1,200 per month
  • Up to £100 interest-free on arranged overdrafts
  • Free daily banking if your account is in credit or if you make two qualifying debit transactions each month
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: Interest free overdraft up to £100. Debit balances charged at base rate + 5.00%.
Bank of Scotland Vantage Account
vantage account
  • Vantage accounts pay 2% AER (2.96% Gross) variable on balances of £3,000 - £5,000, interest is paid monthly
  • Vantage is a free add-on for current accounts, requiring the account have at least £1000 paid in each calendar month, the account stays in credit, and at least two direct debits are paid from the account each month
  • If you have a Classic, Silver, Platinum, Gold or Premier Account, you can add Vantage to it.
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
None1st year:
£0
2nd year:
£0
Account requirements

Not available
via Choose
Representative example: If you use a Planned Overdraft of £1,200 on our Classic Account the overdraft interest rate we charge on the first £25 will be 0% EAR variable. The overdraft interest rate on the next £1,175 will be 19.89% EAR variable and a Monthly Overdraft Usage Fee of £6 will apply.
Lloyds Bank Club Lloyds
club lloyds
  • No monthly account fee if you pay in £1,500 per month, otherwise it costs £3 per month
  • Earn 2% AER variable credit interest on balances between £1 - £5,000
  • Exclusive access to banking offers
  • Choose your 'lifestyle benefit' - from cinema tickets, to annual magazine subscriptions or an annual Gourmet Society membership.
1st year:
£0
2nd year:
£0
1st year:
£0
2nd year:
£0
£3.001st year:
£-36
2nd year:
£-36
Account requirements

Not available
via Choose
Representative example: For a Planned Overdraft of £1,200, the interest rate on the first £100 is 0% EAR variable. On the next £1,100 the interest rate is 19.89% EAR variable, with a monthly overdraft usage fee of £6.

Choose Ltd is a credit broker. We do not charge any fees in relation to credit broking activities.
Choose is provided to you as a completely free service, however we may receive a commission from some of the companies we list.
Any calculations provided are intended as a general guide only for comparison purposes and should not be considered as an exact representation of what you will have to pay.

How to find the highest interest paying bank account

Which current accounts pay interest?

Most current accounts pay little or no interest on in-credit balances, but some, like those listed in the table above, advertise rates that put some of the best savings accounts to shame. These reward people for staying in credit by calculating the interest owed on each day's balance, then crediting the account once a month with the interest earned.

It's simple to see if an account pays interest or not, and if so, what the rate is - just check the figures in the column headed, "Interest rate (AER variable)" above. This gives the rate we could expect to earn over a year on an initial deposit, with interest being paid monthly on both the deposit and the interest it's earned so far (known as compound interest).

How can I get the highest rates?

Note that the accounts in the table above offer "x% up to" a particular amount. Almost all current accounts that pay interest only do so on certain amounts, and generally the higher the rate of interest the lower the cap on the balance that will earn that rate: any extra money in our account will earn nothing.

Most accounts that pay interest are considered "premium" accounts, and may therefore charge a monthly fee. In some cases this fee is waived for those who pay in at least a certain amount each month - the amount varies from bank to bank - while others charge no matter how much money we deposit each month. In the latter case, the account is only a good deal if we know we can earn more in interest than we'll pay in fees.

Customers may also need to meet other conditions to have interest paid on their balances. We've mentioned the most common - depositing a minimum amount every month - but other banks may also ask that we make a certain number of direct debit payments from the account each month, the idea being that we use it as our main account rather than as a savings account.

Which is the best interest paying current account?

The best interest paying current account for us is the one that will pay the highest rate of interest on as much of our balance as possible. Those who have lower average balances will often benefit most from the accounts with the highest advertised rates, while those with a substantial amount should consider an account with a lower rate but a much higher cap, or spreading the balance across several high rate accounts.

Note that as well as paying interest, some of the accounts above also offer cash back on certain kinds of spending, usually for paying bills, which can help boost monthly earnings.

How many interest paying accounts can I have?

It might be tempting to open multiple accounts to earn the top interest rates available on as much money as possible, but the banks don't allow this. Customers will usually find that they're limited to one solo account and one joint account per provider; if they're allowed to open more it's likely that only one will be paid interest at the advertised rate.

That said, there's nothing to stop someone from having an interest paying account from more than one bank, as long as they can meet the terms and conditions of each account. It can take a bit of time to set up payments so that each account benefits, but for those who are organised enough it can help ensure that more of our money is working for us.

Is an interest paying current account right for me?

Interest paying current accounts are best suited to people who can maintain a high average balance. This is particularly the case with those accounts whose conditions state that we move all our everyday banking to them. As our salary or other source of income is paid in, then various bills and payments go out, our daily balance can rise and fall considerably over the course of the month, and if we only have a high balance for a few days of the month, that will seriously affect how much interest we earn.

Those who need an overdraft on a regular basis will be better off comparing accounts on that basis instead: no matter how much interest it's possible to earn on in credit balances, this will quickly be wiped out by the interest charged on overdraft borrowing. We've a guide to current account overdrafts here.

Go back up to the bank account deals  

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