High Interest Rates Current Account

At the moment top current bank accounts are paying up to 5% interest yet a huge number of savers are either unaware of it or continue to keep their money in banks that pay next to nothing. Although, these rates are certainly attractive, most banks have a range of terms and conditions customers must meet to qualify. Providers mostly ask for customers to set up direct debits and for minimum sums to be paid in each month. Also, certain accounts will charge fees. Below are our top picks for current for Savers with High Interest Rates:

1. Nationwide FlexDirect

  • 5% interest (fixed) on balances up to £2,500 for the first year, drops down to 1% after 12 months.
  • Earn £100 each if you are referred by a friend or for referring a friend to switch.
  • 0% arranged overdraft for the first 12 months.
  • No monthly account fee for maintaining the account.
  • Fee free arranged overdraft for 12 months (subject to approval).
What’s the Catch?
  • You need to pay in at least £1,000 a month to get the interest.
  • 5% interest drops to 1% after 12 months.

2. TSB Classic Plus Account

  • 3% interest (variable) on balances up to £1500.
  • Optional £35 interest and fee free overdraft (subject to status).
  • No monthly account fee for maintaining the account.
  • Access to 2% regular savings account.
What’s the catch?
  • To earn 3% interest, you need to pay in £500 each month.
  • Register for internet banking.
  • Sign up paperless statements and correspondence.

3. Nationwide FlexPlus

  • 3% in credit interest variable on balances up to £2,500.
  • Includes worldwide travel insurance, mobile phone insurance, breakdown cover and extended warranty.
  • Commission-free cash withdrawals and card payments abroad.
  • Share £200 with a friend when they switch their main current account to Nationwide (terms apply).
  • No fees on the first £250 of your arranged overdraft.
What’s the catch?
  • Monthly fee of £13 for maintaining the account.
  • It is not possible to have a FlexPlus account without the associated insurance benefits.

4. Co-operative Bank Current Account

  • £4 a month credit.
  • 5p cashback each time you use your debit card (Max £1.50 a month).
What’s the Catch?
  • Pay in at least £800 a month.
  • Stay in credit or your overdraft.
  • Use online or app banking once a month.
  • Go paperless.
  • You need to have four Direct Debits.

5. Santander 123 current account

  • 1% cashback on Council Tax and water bills.
  • 2% cashback on gas and electricity bills.
  • 3% cashback on mobile, TV, phone and broadband bills.
  • 1.5% interest on balances up to £20,000.
  • Limited additional cashback offers.
  • £50 referral bonus for you and whoever refers you.
What’s the Catch?
  • £5 monthly fee.
  • You must have 2 active direct debits.
  • You need to pay in £500 a month.
  • Selected companies are participating in the bills cashback.

6. Halifax Reward Account

  • £50 cash bonus now, another £85 in six months.
  • £2 a month reward.
  • Occasional cashback deals.
  • Six month fee-free arranged overdra
  • £50 0% overdraft.
What’s the Catch?
  • You need to pay in £1,500 a month.
  • You need two Direct Debits to get the £2 reward.
  • You have to switch from and close your old account for the bonus.

7. Additional Information

Interest rate definitions explained: AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Gross p.a. is the interest rate without tax.

The treatment of your account for tax purposes will depend on your individual circumstances and you may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs’ (HMRC) website hmrc.gov.uk (This link will open in a new window). The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.