Current accounts with best interest rates in the UK: Top 7

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.

We’ll also show you a smart, alternative way to make your money work harder. With Wise Interest**, you can help your money grow by investing in a fund that holds government-guaranteed assets - all within your Wise account from the money services provider Wise. It’s not a bank account but offers some similar features, and your money is safeguarded.

Learn more about Wise Interest

Capital at risk. Growth not guaranteed.

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Table of contents

Quick comparison of the top current accounts’ interest rates The 7 best current accounts with high interest rates in the UK Nationwide FlexDirect Current Account Kroo Current Account Santander Edge Up Current Account TSB Spend & Save Current Account Club Lloyds Current Account Bank of Scotland Classic Account with Vantage Virgin Money M Plus Account What is a current account? Advantages and disadvantages of current accounts How to pick the best current account to earn interest?

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.

📚 Read more: Nationwide savings accounts: Rates, features and more

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?

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: Have a balance in GBP, USD or EUR Switch on Wise Interest Your money is put to work by investing in a fund that holds government-guaranteed assets Returns are added to your money every working day Withdraw up to 10,000 GBP (or equivalent) a day (any amount over will add a processing time of up to 2 working days) Start from as little as £1 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. Learn more about Wise Interest Capital at risk - past performance does not guarantee future growth. Variable rate is based on 7 day performance as of 14/05/2025. This fund has returned an 1.31% annual average over the last 5 years, excluding Wise fees. For the full 5 year past performance of funds, please visit our website.

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.

Earn a return with Wise Interest

A bank account isn’t the only way to manage – or grow – your money.

The Wise account is a fantastic alternative if you send money abroad, convert between currencies, or need an easy way to spend overseas. It’s not a bank account but offers some similar features.

You can also switch on Wise Interest** which lets you earn a variable return of up to 3.74%*** on your GBP balance. Unlike a typical savings account, your money is put to work by investing in a fund that holds government-guaranteed assets. It’s an effortless way to help your money grow while still enjoying the flexibility of Wise at home or abroad.

Here’s an overview of the main benefits of using Wise:

Fast and easy setup with no physical paperwork Low, upfront, transparent fees* and the mid-market exchange rates Dedicated support for large transfers Sophisticated security and anti-fraud measures, with your money safeguarded under regulatory protections Trackable and fast transfers to countries Low-cost spending in countries with the Wise card Earn a return on your GBP, USD and EUR balance with Wise Interest**

Sign up with Wise today

**Capital at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.

***Capital at risk - past performance does not guarantee future growth. Variable rate is based on 7 day performance as of 14/05/2025. This fund has returned an 1.31% annual average over the last 5 years, excluding Wise fees. For the full 5 year past performance of funds, please visit our website.

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Sources used for this article:

1. Nationwide - FlexDirect current account
2. Kroo - Current Account
3. Santander - Edge Up Current Account
4. TSB - Spend & Save Account
5. Lloyds Bank - Club Lloyds
6. Bank of Scotland - Classic Account
7. Virgin Money - M Plus Account

Sources checked on 9-May-2025.