What is a high interest current account?

A high interest current account is just like your regular bank account, but with a handy bonus: it pays you interest on your balance. You can still spend and access your money whenever you want, so it’s a clever way to watch your cash grow without locking it away.

To snag the highest interest rates, you may need to pay in a set amount each month — say for example £1,000 or more. But the good news is that banks often sweeten the deal with extras like cashback on bills or purchases, making your everyday banking more rewarding.

Interest usually lands in your account monthly and applies up to a certain balance limit, so it’s worth keeping an eye on those details. All in all, it can be a smart way to make your current account pull a bit more weight for you.

What to consider when comparing high interest current accounts

With so many high interest current accounts out there, picking the right one can feel a bit overwhelming. But don’t worry – it’s all about figuring out what matters most to you and how you manage your money day to day. Here are a few things to think about:

Interest rates

Rates can vary widely, so do a comparison – but also check on any restrictions in the terms and conditions.

Terms and conditions

High interest accounts may have a minimum amount to pay in each month, a maximum limit on how much interest is paid, and limited account features. Check the small print.

Monthly fees

Some high interest accounts charge a fee, so make sure the interest you’d earn is likely to be more than the fee. Also, look at what fee-free accounts are available and compare their interest rates.

Cashback rewards

Some high interest accounts come with cashback or rewards on everyday spending, and even bonuses like travel insurance. If there’s a fee involved, weigh up the cost vs likely rewards you’d earn.

It’s worth taking a little time to look beyond the headline-grabbing interest rate on a current account and weigh up the blend of interest, fees and features.

Can I have more than one current account?

Usually you can have more than one current account, and that can make managing your money easier. For instance, if you are in a couple you might each have an account for your salary to come in and your personal bills to go out. Then you could have a joint account with your partner for shared costs like rent or the mortgage, plus household bills and food shopping.

Opening multiple accounts can also let you take advantage of perks like cashback or rewards. Just be careful not to spread yourself too thin across multiple accounts – especially if they come with overdrafts. It’s easy to lose track and end up in more debt than you planned.

It’s not very common, but some banks do require theirs to be your only current account, so it’s worth checking the fine print before signing up.

Can I switch my high interest current account to a better deal?

Absolutely - and the Current Account Switch Service (CASS) saw a whopping 1.4 million switches in just one year. If your high interest current account does the job and you’re not having any issues, it might feel like there’s no reason to change. But that comfort zone could be costing you in missed perks and better features.

These days, switcahing bank accounts is quicker and easier than you might think – and it could really pay off. In addition to higher interest on your money, some banks offer switching incentives, like cash bonuses and free rewards. Others might give you cashback on paying household bills, better overdraft rates, or mobile apps that make budgeting a breeze.

So, if you’ve had the same account for years, it might be time for a little bank account spring clean. Whether you want to earn more interest, bag extra rewards, or just get a better overall deal, switching could help you make the most of your everyday money.

Current account guides

Explore more of our current accounts

You might also be interested in

Loading image

Saving Accounts

Get in the habit of saving with accounts that suit your short or long-term goals.

Reward Credit Cards

Earn points, cashback or other perks when you spend.
Loading image

Loans

From meeting a short-term need to longer-term borrowing, find the loan you need.

Page updated on 11th September 2025, Reviewed by Richard Groom