High Interest Current Accounts

6 min Read Published: 15 Jun 2020 Updated: 31 Jul 2020

The best High Interest Current Accounts from the whole UK Savings Market!

SavingsChampion.co.uk monitors the whole UK savings market (that's over 4000 accounts) to bring together the best buys available.

The following savings best buy tables are also available:

Two ways to always ensure you get the best savings rate

  1. Bookmark this page and regularly check our best buy tables, such as the one below.
  2. You can also sign up to the FREE rate tracker email alert which will monitor savings account rates for you. You simply enter your email address and the names of the savings accounts you currently have. Then not only will the system tell you if you are getting a good deal but it will continuously monitor the market for you and email you when there are better deals out there than your existing account. When using the tool make sure you enter the correct balance for each of your accounts as some deals out there offer tiered rates, whereby the interest rate paid is dependent on your account balance.

Best High Interest Current Accounts

Below we list the top 5 high interest current accounts. It is worth checking the account summary for each account accounts (listed below the main table) as it explains the qualifying criteria and when the interest in paid.

Virgin Money Nationwide Building Society TSB Bank of Scotland Lloyds Bank
Account name Current account FlexDirect Account Classic Plus account Vantage Current Account Club Lloyds Current Account
AER 2.02% 2.00% 1.50% 1.00% 1.00%
Minimum opening balance £0 £0 £0 £1 £1
How to manage the account Branch, Cash Card, Mobile Banking, Online, Telephone Branch, Cash Card, Mobile Banking, Online, Telephone Branch, Cash Card, Mobile Banking, Online, Telephone Branch, Cash Card, Mobile Banking, Online, Post, Telephone Branch, Cash Card, Mobile Banking, Online, Telephone
How to apply Branch, Online, Telephone Branch Branch, Online, Telephone Branch, Online, Telephone Branch, Online, Telephone
Financial Services Compensation Scheme Shared Licence Shared Licence Shared Licence Shared Licence Own Licence

Source: SavingsChampion.co.uk: updated 31/07/20

 

Below we list the account summary for each of the bank accounts

Virgin Money

If you're 18 or over, you can apply for this account online or over the phone, if you're 16 or 17, you can open it in some branches. Interest is only paid on balances up to £1,000. Interest is paid monthly.

Nationwide Building Society

Interest rate reverts to 0.25% AER after the first 12 months. Rate also falls to 0.25% AER if a minimum of £1,000 is not deposited each month during the first year. Interest is only paid on balances up to £1,500. Interest is paid on the first day of each month.

New customers can apply online but will be required to bring ID into a Nationwide branch to complete their application process, existing customers may also be required to do this. Existing customers can apply in a branch, online or via a mobile banking app.

TSB

The interest rate is only paid on balances up to £1,500.

A minimum of £500 must be paid in to the account each month and you must register for internet banking, paperless statements and correspondence (when available) to qualify for this interest rate.

Customers can open the account without having an existing TSB current account or can add it to an existing current account with TSB. Interest is paid monthly.

Bank of Scotland

Vantage can be added to an existing account or selected when applying for a new account. A minimum of £1,000 must be paid into the account each month, you must stay in credit and pay at least two different Direct Debits from your account each calendar month to qualify for this interest rate.

1% AER is paid on balances up to £4,000, 2% AER is paid on any part of the balance between £4,000 and £5,000. Balances above £5,000 will not receive any interest.

Although the account can be applied for and managed online or by telephone, the provider may need to see ID in a branch. Interest is paid on the 2nd of each month.

Please note, from 1 October 2020, the interest rates are changing; the current interest rate of 1.00% AER on balances from £1 to £3,999.99, is changing to 0.60% AER. The current rate of 2.00% AER payable on the part of any balance from £4,000 up to and including £5,000, is changing to 1.50% AER.

Lloyds Bank

A minimum monthly deposit of £1,500 and a minimum of two different direct debits each month are required. If these conditions are not met, a £3 fee will apply and no interest will be paid for that month.

1% AER is paid on balances up to £4,000, 2% AER is paid on any part of the balance between £4,000 and £5,000. Balances above £5,000 will not receive any interest. Interest is paid on the 1st of each month.

Please note, from 1 October 2020, the interest rates are changing; the current interest rate of 1.00% AER on balances from £1 to £3,999.99, is changing to 0.60% AER. The current rate of 2.00% AER payable on the part of any balance from £4,000 up to and including £5,000, is changing to 1.50% AER.

Source: SavingsChampion.co.uk: updated 31/07/20

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