UK Current Accounts Interest Rate – GlobalFinMate
Looking for a new current account? It could be worth shopping around for something that offers a little more than everyday banking services.
Some UK current accounts pay interest on your money, similar to a savings account. This could be a real bonus, letting you manage and access your money when you need it – while also offering a little extra on your balance.
In this guide, we’ll give you a rundown of the current accounts with the best interest rates available in the UK right now.
Quick comparison of the top current accounts’ interest rates
Here’s your at-a-glance look at the best interest-paying current accounts in the UK right now. This AER interest rates, and details of how interest is paid.
| Account | AER* | Interest payable on balances up to: | Interest paid |
|---|---|---|---|
| Nationwide FlexDirect Current Account¹ | 5% | £1,500 | Monthly |
| Kroo Current Account² | 3.15% | £500,000 | Monthly |
| Santander Edge Up Current Account³ | 2.50% | £25,000 | Monthly |
| TSB Spend & Save Current Account⁴ | 2.05% | £25,000 | Monthly |
| Club Lloyds Current Account⁵ | 1.50% to 3% | £5,000 | Monthly |
| Bank of Scotland Classic Account with Vantage⁶ | 1.50% to 3% | £5,000 | Monthly |
| Virgin Money M Plus Account⁷ | 1% | £1,000 | Monthly |
* Rates as of 9th May 2025.
The 7 best current accounts with high interest rates in the UK
Now, let’s take a deeper dive into our current account interest rate comparison, looking at each of the accounts in a little more detail. This should help you choose the right one for you.
Nationwide FlexDirect Current Account – 5% AER variable interest rate¹
The Nationwide FlexDirect current account offers the highest interest rate on credit balances on our list.
It pays 5% AER (4.89% gross for a year) interest, but only on balances up to £1,500 and only for 12 months.
After your first year, you’ll still get interest but it drops right back down to 1%. Interest is paid monthly.
The FlexDirect account is fee-free, and also offers:
- A £50 interest-free arranged overdraft (if eligible)
- A debit card
- Up to £60 cashback on debit card purchases for 12 months
- Online, app and phone banking.
In order to get the interest and cashback, you’ll need to pay in at least £1,000 a month.
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Kroo Current Account – 3.15% AER variable interest rate²
The Kroo current account offers 3.15% AER interest, paid monthly. Even better, it gives you the interest on balances up to £500,000, so you could potentially use it as a savings account.
Your money is FSCS protected up to £85,000, there are no monthly account fees and you’ll also get features like:
- A Visa debit card
- No fees for spending abroad
- An overdraft (subject to eligibility).
Santander Edge Up Current Account – 2.50% AER variable interest rate³
The Santander Edge Up current account isn’t quite a packaged account (which offers perks like travel insurance in exchange for a monthly fee), but it’s close.
For a fee of £5 a month, you’ll get 2.50% AER interest (2.47% gross) on balances up to £25,000, paid monthly.
You’ll also get:
- An arranged overdraft (subject to status)
- A Santander Edge Up debit card
- Travel benefits, such as fee-free debit card spending overseas
- 1% cashback on supermarket and travel spending (up to £15 a month) and 1% cashback on selected household bills
- Access to Santander Boosts – a free rewards service offering cashback, prize draws, vouchers and personalised offers.
You’ll also need to deposit at least £1,500 each month and have 2 active Direct Debits to be eligible for this account.
| 💡 Did you know that you can earn a return with Wise Interest? |
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Your money doesn’t have to sit still. With Wise Interest**, you can earn a variable return of up to 3.74% on your GBP balance, all within your Wise account.Here’s how it works:
Wise Interest is different from savings and current accounts. It allows you to invest your money and help it grow, while staying accessible. Just keep in mind that, like any investment, growth isn’t guaranteed, and your capital may be at risk. |
TSB Spend & Save Current Account – 2.05% AER variable interest rate⁴
TSB’s Spend & Save Current Account has no monthly fees, and pays 2.05% AER on money put aside in Savings Pots for the first 12 months. You can create up to 5 of these per account, and save (and earn interest) on up to £5,000 per Pot. This means you can earn interest on a maximum of £25,000 with TSB.
Useful to know – the interest rate drops to 1.04% AER after 12 months.
The account also offers:
- A Visa debit card
- Up to £2,000 overdraft (subject to application)
- £5 cashback for the first 6 months when you make 20+ debit card payments within the month
- Access to a linked Monthly Saver account paying 5% AER for 12 months when you save £25 to £250 a month
- Online, mobile and telephone banking.
Club Lloyds Current Account – 1.50% to 3% AER variable interest rate⁵
The Club Lloyds Current Account offers quite a few benefits, including monthly credit interest. If you have at least two Direct Debits leaving your account each month, you’ll earn:⁷
- 1.5% AER variable on balances between £1 and £3,999.99
- 3% AER variable on balances between £4,000 and £5,000.
The account also offers a choice of lifestyle benefits, such as free cinema tickets, magazine and TV subscriptions, and exclusive access to savings accounts and mortgages with preferential rates. Another perk is fee-free spending on your debit card overseas.
The only thing to note is that there’s a monthly fee of £3, although this is waived if you pay in at least £2,000 a month. This fee will be £5 a month from 2nd June 2025.
You can also upgrade to other premium Club Lloyds accounts that also pay interest, such as Club Lloyds Silver and Club Lloyds Platinum. These are packaged bank accounts that offer additional benefits, in exchange for a higher monthly fee.
Bank of Scotland Classic Account with Vantage – 1.50% to 3% AER variable interest rate⁶
The Bank of Scotland Classic Account doesn’t offer interest on its own, but it does when you pair it with the Vantage add-on. This is free to add on to your current account, and gives you access to the following interest rates:
- 1.5% AER variable on balances between £1 and £3,999.99
- 3% AER variable on balances between £4,000 and £5,000.
You’ll spot that this is the same as the Club Lloyds account, and it’s likely because Bank of Scotland is part of the Lloyds Banking Group.
To add Vantage to your account and get the interest, you’ll need to pay in at least £1,000 a month, keep your balance above £0 and have two active Direct Debits a month.
The Classic account itself has no account fee, a debit card and a handy Save the Change feature for rounding up card spending into a linked savings account. It also pays up to 15% cashback on everyday card spending with selected retailers.
Virgin Money M Plus Account – 1% AER variable interest rate⁷
The Virgin Money M Plus Account pays interest of 1% AER on balances up to £1,000, with no strings attached and no monthly fees. The account also offers the following features and perks:
- A Mastercard debit card
- A free linked saver account – the M Plus Saver, paying 2.25% interest on balances up to £25,000 (rate applies from 16 June 2025)
- Exclusive access to a regular saver account paying 6.50% AER on up to £250 a month
- No fees for using your Virgin Money debit card abroad
- Cashback offers with selected retailers
- Online and mobile banking.
What is a current account?
A current account is a standard, everyday bank account. Most UK banks and building societies offer them, and you can switch between current accounts using fast-track services like the Current Account Switch Service.
It’s where your salary or other income is paid in, and which you’ll use to pay your bills and everyday expenses. Current accounts usually come with a debit card, which you can use for spending your balance.
Some current accounts are pretty basic, offering Direct Debits, Standing Orders, debit card payments and not much else. But others offer additional features like interest, cashback, shopping discounts or extra perks.
Advantages and disadvantages of current accounts
Advantages:
- Easy access to your money
- Everyday banking services, in addition to earning interest
- A wide range of options to choose from, as nearly every bank and building society has a current account
- A debit card for convenient spending.
Disadvantages:
- Interest rates aren’t usually as high as savings accounts
- Interest earned isn’t tax-free, unlike with cash ISAs
- A monthly fee may apply for some of the highest interest-earning accounts.
How to pick the best current account to earn interest?
When searching for the best current account for your needs, it’s worth looking at a range of factors. For example, how you’ll access and manage your account, whether the bank has a mobile banking app and how well it scores on things like security and customer service.
But if earning interest is a top priority for you, here’s what to look for:
- The AER interest rate
- The maximum balance on which interest is paid
- Whether the interest rate includes an introductory bonus, causing the rate to drop when the bonus period ends
- How frequently interest is paid (i.e. monthly or annually)
- Whether the account has a monthly fee.
