We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies as per our policy which also explains how to change your preferences.

Best bank accounts if you always stay in credit

Not sure which current account would suit you best? We've made it easier for you by selecting the best high-interest current accounts.

In this article
Best high-interest current accounts  Lloyds to cut rates from July 2018 Nationwide FlexDirect pays 5% for a year Why high-interest current accounts can boost your savings
How to make the most of high-interest current accounts How we choose our Best Rate bank accounts

Best high-interest current accounts 

Current accounts are paying much better rates than most savings accounts at the moment. Our table shows the best deals for credit balances of £1,000. 

If you want to maximise returns, read our step-by-step guide to opening multiple high-interest bank accounts below. 

Click the 'more info' button to find out how to qualify for interest on the accounts.

Provider Interest rate (AER) Switching incentives and perks Min. monthly funding Customer score


5% Refer a friend and share £200 / fee-free overdraft for first 12 months £1,000 Which? recommended provider80%
5% on balances up to £2,500 for the first 12 months (rate falls to 1% thereafter). Must pay in £1,000/mth. Max two accounts (one must be joint).
Plus Account

£5 monthly cashback for setting up two direct debits plus £5 if you spend on TSB debit card 20 times a month

£500 69%
5% on balances up to £1,500, as long as you pay in £500/mth and register for internet banking/paperless statements. Max two accounts (one must be joint). Monthly cashback offer ends 31 Dec 2018 for accounts opened on/after 8 Jan 2018 (or 30 June 2018 for accounts opened 1 Mar 2017 to 7 Jan 2018).

Current Account
3% Earn one Clubcard point per £1 spent on debit card at Tesco in addition to normal Clubcard points £750 Which? recommended provider70%
3% on balances up to £3,000, guaranteed until April 2019. Must pay in £750/mth and pay out three direct debits. Max two accounts per person.
Bank of Scotland
Classic Vantage
2%   £1,000 66%
2% on balances up to £5,000 (reduced to 1.5% from 1 July 2018),. Vantage must be added to your account. Must pay in £1,000/mth, stay in credit and pay out two direct debits.Max three accounts per person.

Club Account

2% Choose free annual benefit (6 Vue or Cineworld tickets, mag subscription, or Gourmet Society membership) £1,500 64%
2% on balances up to £5,000 (reduced to 1.5% from 1 July 2018), must pay out two direct debits. Monthly fee of £3 applies in any month you don't pay in £1,500. Max two accounts (one must be joint).




Up to 3% cashback on household bills paid by direct debit, including Santander mortgage payments £500 67%
1.5% on your entire balance up to £20,000. Must pay in £500/mth, pay out two direct debits, and cover the monthly fee of £5. Max two accounts (one must be joint).

B Current

0.25% Linked savings account pays 0.5% None 62%
0.25% paid on balances up to £2,000. Managed via a mobile banking app. Max two accounts (one must be joint).

Yorkshire Bank

B Current

0.25% Linked savings account pays 0.5% None 65%
0.25% paid on balances up to £2,000. Managed via a mobile banking app. Max two accounts (one must be joint).

Lloyds to cut rates from July 2018

Lloyds Banking Group announced it will cut interest rates on its most popular current accounts again - from 2% to 1.5% on balances between £1 and £5,000 for customers with Club Lloyds and Bank of Scotland Vantage accounts. 

Club customers already saw the top rate halved from 4% to 2% in January 2017. And Santander halved the top rate on its flagship 123 account in November 2016.

Meanwhile, TSB has bumped up the rate on its ClassicPlus account from 3% to 5% on balances upto £1,500, by way of an apology for its recent online banking meltdown.

Nationwide FlexDirect pays 5% for a year

In contrast to Lloyds and Santander, Nationwide has kept the FlexDirect interest rate at 5% on balances up to £2,500.

This rate is fixed for the first 12 months of holding the account, as long as you pay in at least £1,000 per  month (excluding transfers from any Nationwide account held by you or anyone else). 

After a year, the rate drops to 1% on balances up to £2,500. 

FlexDirect customers can also apply for the Flex Regular Online Saver, earning 5% on regular payments of up to £250 a month for a year. 

Nationwide is second only to First Direct in our customer satisfaction tables, with a score of 80%, rated by members of the public who hold an account with the building society. 

Find out more: Best and worst banks rated by customers

Why high-interest current accounts can boost your savings

Given the poor rates of interest offered on savings accounts, many savers are opening multiple high-interest current accounts to maximise their returns. 

The drawback with this type of account is that banks apply restrictions, such as minimum monthly payments.

However, we explain how you can work within these rules to beat the limits and make the most of your cash savings.

How to make the most of high-interest current accounts

Our example applies to a saver with £4,000 available to leave in high-interest current accounts and a further £1,000 to circulate between them.

Step 1: Find highest current account interest rates

Our table above shows you the best rates available on current accounts, along with the number of accounts you can open.

Step 2: Check the high-interest account requirements

Banks often set specific account requirements – such as fees, minimum monthly deposits and direct debits – to qualify for interest or to avoid paying a monthly fee on the account.

Each account limits the balance on which you can earn interest but, in most cases, banks will allow you to open a second main or joint account, essentially doubling that amount.

Watch out for accounts with tiered interest (where you get a higher rate for having a higher balance) as you must have a balance within the top tier to earn the top rate of interest. At lower tiers, these accounts become less competitive.

Step 3: Earn instant cash for switching 

Banks often offer cash incentives to attract new customers – we compile the latest current account switching incentives here – and switching should only take seven working days.

In this example, we open the Halifax Reward account, which pays £75 for switching plus an ongoing £3 for any month you stay in credit.

Start with £1,000 in this account that will be used to circulate around your high-interest current accounts and return to the same account each month.

Step 4: Open multiple high-interest current accounts

Let's imagine you have a further £4,000 to play with. You could put £2,500 in a Nationwide FlexDirect account (earning £125 in the first year) and another £1,500 in a TSB Plus Account (earning £75 per year) .

If you have more available to save, look further down our table.

For example, the Santander 123 account is the only one paying interest on balances up to £20,000, as well as up to 3% cashback on bills paid by direct debit from your 123 account.

If you could deposit the full £20,000, you'd earn £300 a year (£240 after the £5 monthly fee).

Step 5: Transfer cash from your main current account

Transfer the £1,000 from your Halifax Reward account into your Nationwide FlexDirect account so that you meet the minimum £1,000 deposit each month.

At this point, your Nationwide FlexDirect balance will stand at £3,500.

Step 6: Circulate it between other high-interest current accounts

Now, transfer that £1,000 from your Nationwide FlexDirect account to your TSB Plus account (the minimum monthly deposit on TSB's Plus account is £500 a month).

The balance on your TSB account will now stand at £2,500.

Step 7: Transfer it back to your main current account

Finally, transfer £1,000 from your TSB Plus account back into your main Halifax Reward account.

Step 8: Repeat steps 5 to 7 each month

The easiest way to do this is to set up standing orders (instructions to your bank to pay a set amount at regular intervals to another account) so that the transfers take place automatically every month.

This means you meet the requirements of all the accounts and earn the most interest possible on the whole sum.

How we choose our Best Rate bank accounts

Which? Best Rate current accounts offer the best rates on the market for the scenarios we've used.  

The accounts must also be available nationally and the account provider must be fully covered by the Financial Services Compensation Scheme

We analyse the whole market and calculate the cost of the account so you can see how much you're likely to pay or how much interest you'll earn if you choose that account. The table is updated daily.

The customer score is based on customer satisfaction and likelihood of recommending company to friend/family member. Customer scores are based at brand level.

Customer scores are based on a survey of an online panel of respondents from the general public, who were invited to take part in the bank account customer-satisfaction survey during September 2017. The final sample size was 5,554.