High Interest Savings Account | High Interest Accounts | Bankrate | Bankrate UK (2023)

High-interest bank accounts pay a higher rate of interest on in-credit balances than other current accounts.

High-interest accounts today can often pay better interest than savings accounts in many circumstances, although there are often limitations. This guide outlines what to consider if you’re looking for the best bank account interest rates.

Most high-interest accounts have stringent ongoing eligibility criteria; there is usually some kind of cap on the balance you can earn interest on; and there could be a monthly fee. On the plus side, you can earn a decent amount of interest and some accounts offer a range of additional ongoing benefits and rewards.

If you have, or are likely to have, an in-credit balance for a prolonged period of time, it’s worth looking into high-interest accounts. But do your homework first so that you can choose a high-interest account that best suits your financial situation.

Getting the best current account interest rates

There are many benefits to be had from high-interest current accounts, even beyond those available from high interest savings accounts, as you can continue to access your money freely. Nevertheless, to get a high-interest account that will work as hard as possible for you, there are a number of things you’ll need to consider.

Balance limits

Sometimes the highest rate of interest isn’t paid on the entirety of your bank balance. Instead, there can be an upper (or lower) limit, with no interest being paid on anything outside of the defined range. If you are likely to have savings above or below these limits, it may be worth looking for an alternative or supplementary account which offers interest on all (or at least the majority) of your balance.

In looking for other accounts, you should focus on getting the highest possible return. It may be that a higher interest rate on a smaller proportion of your balance delivers a better return than a lower interest rate on its entirety – so have your calculator handy.

(Video) High Interest Savings Account UK - 4.8% ALTERNATIVE

Introductory rates

With some accounts the high interest rate only applies for a limited period of time – usually one year. If you opt for an account with an introductory rate, keep in mind that you will most likely want to switch accounts again after that period elapses.

Minimum number of direct debits

Some high-interest accounts state that in order to qualify for the highest rate of interest, you must have a minimum number of direct debits set up with the account. The thinking behind this stipulation is pretty straightforward: banks offer higher interest rates to attract and retain customers. They obviously don’t make any money by offering interest which is well in excess of the current Bank of England base rate, so they want to gain access to the areas of personal banking where they can make money – overdrafts, credit cards, and other auxiliary services like insurance. By forcing you to set up some direct debits, the bank is hoping that you’ll make it your primary account.

Minimum income

Most high interest accounts demand that a minimum amount of money is paid into the account every month. It is usually further stipulated that this money cannot simply be transferred from another account with the same provider. The reasoning is similar to that of enforced direct debits: banks want as much of your business as they can get. The simplest way for them to do this is to provide the bank account that your salary gets paid into.

By having a high ‘minimum monthly credit’, banks can ensure your main source of income arrives in their account, before monthly bills, direct debits, standing orders and other spending has taken place.

Monthly fee

Some accounts incur a monthly fee, which can be discouraging when you are looking to make rather than spend money. Usually, though, accounts with monthly fees offer other perks such as cashback on household bills, or free insurance. It is worth calculating the increased interest, plus the value of any perks or benefits, then taking off the monthly fee, to ensure that the fee is not a significant barrier.

Overdraft charges

Even if you have no intention of using an overdraft, it’s a good idea to check the account’s overdraft charges. Some accounts offer a buffer amount, where you can go overdrawn without incurring any charges whatsoever. Once that amount is exceeded, you can be charged a daily rate, a fixed monthly charge, and/or an EAR (Equivalent Annual interest Rate) which is calculated as a percentage of the amount you are overdrawn.

Switching incentives

Some high-interest accounts offer generous cash switching incentives. Most stipulate that you must go through the dedicated switching service in order to be eligible, which can be selected during the application process.

Other benefits of high-interest accounts

Although the conditions associated with running a high-interest account might seem onerous, in practical terms they are pretty straightforward and you will probably qualify without issue. Because of this, there is real competition amongst banks for your business, and most accounts also offer other benefits and perks to woo you.

(Video) Best Savings Accounts In The UK For 2023 | High Interest Savings Bank


Cashback is usually capped at a total amount that you can earn per year, or is paid at a different percentage depending on the type of spend. There are usually conditions, such as a certain amount of direct debits must be paid from the account, or a minimum amount of spend or transactions must be undertaken with your debit card. Always check to see if these cashback offers are ongoing, or whether they have an end date.


Many high-interest accounts with a monthly fee offer some form of insurance, typically including gadget or mobile insurance and travel insurance.

Travel-related benefits

These can include commission-free non-sterling cash withdrawals, or fee-free transactions when travelling abroad.

Preferential mortgage rates

If you are considering taking out a mortgage, or switching your mortgage provider, this could be a clincher – though always compare mortgage products across the board to ensure you’re getting the best deal.

Linked financial products

Some high-interest savings accounts only become available if you already hold a current account with a particular provider.

Do any other types of accounts pay high interest?

Although high-interest current accounts offer generous returns on your money, alternative products can potentially deliver better returns. The caveat is that these other products – such as peer-to-peer lending – aren’t guaranteed and you could lose everything.

Because high-interest bank accounts are offered by traditional banks with banking licences, depositors are protected by the Financial Service Compensation Scheme or FSCS. This government-backed scheme protects your deposits up to £85,000 if your bank fails, so money held in a high-interest current account is 100% secure. Peer-to-peer products on the other hand offer no such guarantees: they might return the generous interest rates they forecast, or they might not. They may return all of your initial deposit, but they might not. You could be left very out of pocket, and because these products fall into a regulatory grey area, there is no simple way to assess them and make informed investment decisions. In many respects, peer-to-peer products are little more than a long-term gamble.

If you are looking for the best rates of interest and want absolute security for your money, high-interest bank accounts are probably the most accessible products available. So, choose well and get your money working for you.

(Video) 💰💸 Uncover the Best High Interest Rate Saving Accounts in the UK! 💸💰 Up to 7% 🇬🇧

High interest current accounts FAQs

How do I find bank accounts with high interest rates?

When looking for the best current account interest rates, you can look around and use a current account comparison to find the provider offering the best rate. Before you apply, make sure that you meet the eligibility criteria and keep note of any upper limit that applies to the balance you can earn interest on. If the account offers a promotional period, remember to note down when the interest rate will drop.

Will I receive the advertised interest rate on my entire balance?

Every high-interest account is different, but many stipulate a maximum balance amount that they will pay interest on, and furthermore, many account providers only offer the advertised rate for a specified period (typically one year). It is always advisable to carefully read the terms and conditions of your chosen bank account, and be ready to switch to an account with a better rate once the preferential rate has ended.

Is the interest on my account fixed?

This depends on the terms and conditions of the account. Some offer a fixed rate for a specific period, while others offer an ongoing variable rate, meaning that the bank account provider can change the rate (though they will inform you in writing first). If your rate does go down, you can always switch to another account offering a better rate.

Does a high-interest account offer a better rate than a savings account?

Some high-interest accounts do offer an impressive interest rate, but you should check out whether the rate is only offered for a fixed period.

Do bank accounts that pay interest charge fees?

It depends. Some banks do charge a fee for a high-interest account. If there is a fee, you need to make sure that the interest rate you are being offered on your balance is high enough to mitigate the fee.

Can I get an overdraft with a high interest account?

Yes, but you will not earn any interest unless your account is in credit. If you use an overdraft regularly, then a current account offering a free overdraft (up to a specified amount) may be more suitable for you.

Is my money safe in a high interest account?

Deposits/balances up to £85,000 (£170,000 for joint accounts) are covered under the FSCS (Financial Services Compensation Scheme), meaning that if your chosen bank goes into liquidation, you will be reimbursed up to this amount.

Can I have more than one bank account?

Yes, but many high-interest accounts have strict terms and conditions, such as a minimum income requirement, or a minimum amount of direct debits paid out. Make sure you hit these requirements or your high-interest account will likely be worthless.

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Can I open a joint high interest current account?

Yes. Almost all high-interest current accounts offer a joint account option, and they are covered by the seven-day switching guarantee, so it couldn’t be easier.

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High Interest Savings Account | High Interest Accounts | Bankrate | Bankrate UK? ›

TSB Monthly Saver pays 5% AER

You can save between £25 and £250 each month (only one payment allowed each month). There are no penalties for withdrawals but you can't top up any withdrawn amounts. Based on a £250 a month deposit, you would earn £71.31 at the end of the year.

Which bank gives 7% interest on savings account UK? ›

First Direct

Which savings account has the highest interest rate UK? ›

If you're looking for the best savings deal, here's a quick rundown of the top interest rates on accounts at the moment:
  • Easy-access savings account: 4.25%
  • Notice savings account: 4.30%
  • One year fixed-term bond: 5%
  • Sharia savings account: 4.95%
  • Regular savings account: 7%

Where can I get 5% interest on my savings UK? ›

TSB Monthly Saver pays 5% AER

You can save between £25 and £250 each month (only one payment allowed each month). There are no penalties for withdrawals but you can't top up any withdrawn amounts. Based on a £250 a month deposit, you would earn £71.31 at the end of the year.

Where can I get 7% interest on my money? ›

7% interest isn't something banks offer in the US, but one credit union, Landmark CU, pays 7.50% interest, though there are major requirements and stipulations.

Where can I get 5% interest on my money? ›

Best 5% interest savings accounts
  • Best overall: Western Alliance Bank Savings Account.
  • Best for earning a high APY: Newtek Bank Personal High Yield Savings.
  • Best for no fees: Bask Interest Savings Account.
  • Best for easy access to your cash: Panacea High-Yield Savings Account.

Is there a 5% savings account? ›

Here are the best 5% interest savings accounts you can open today: GreenState Credit Union Savings Account – 5.01% APY. Western Alliance Bank – 5.05% APY. 12 Months: Bread Savings – 5.20% APY.

Is saving $1,000 a month good UK? ›

Yes, saving £1,000 a month is great! It amounts to £12,000 a year and if this amount is invested properly, it will grow into a very large portfolio over time. Let's dive in further and see what it means to save such a large amount of money in the UK.

Where can I get 6% on my savings? ›

Best 6% interest savings accounts
  • Digital Federal Credit Union (DCU) Primary Savings.
  • Mango Savings™
  • Clearpath Federal Credit Union 12-month CD/IRA.
May 1, 2023

Which bank gives 8% interest on savings account? ›

DCB Bank hikes savings account and fixed deposit interest rates up to 8%

Where to put $50,000 for best interest? ›

Property investment is likely the best way to invest 50k. It would help if you spoke to a financial advisor before deciding to invest money. A savings account is the safest way to invest 50k. You need to know your risk tolerance before deciding where to invest 50k.

How much is $1000 at 6% interest? ›

Answer: $1,000 invested today at 6% interest would be worth $1,060 one year from now.

Where is the best place to put savings UK? ›

That said, these are some of the most popular places to save money in the UK:
  1. Fixed rate bonds. ...
  2. Notice accounts. ...
  3. Easy access savings accounts. ...
  4. Cash ISAs. ...
  5. Lifetime ISAs. ...
  6. Investing in stocks and shares.

What is the safest savings account UK? ›

National Savings and Investments (NS&I) are the range of savings accounts offered to savers by the government. They are one of the safest ways to save your money. If you do want to open an account with National Savings and Investments, think about how long you want to invest for.

What banks are paying 3% on savings? ›

High-yield savings accounts with APYs of 3% (or more)
  • UFB DIRECT: 3.83% APY. Minimum deposit: None. ...
  • Bask Bank: 3.6% APY. Minimum deposit: None. ...
  • Upgrade: 3.5% APY. Minimum deposit: None. ...
  • CIT Bank: 3.25% APY. Minimum deposit: $100. ...
  • LendingClub: 3.25% APY. ...
  • Marcus by Goldman Sachs: 3% APY. ...
  • SoFi: 3% APY. ...
  • Discover: 3% APY.
Nov 15, 2022

How much interest does $10000 earn in a year? ›

Currently, money market funds pay between 4.47% and 4.87% in interest. With that, you can earn between $447 to $487 in interest on $10,000 each year.

Do many Americans have a 5 savings rate? ›

This plan would put you well above the pack when it comes to savings, as only 16% of Americans save more than 15% of their annual income.
21% of Americans don't save any of their annual income.
Percentage of annual income savedShare of Americans
Less than 5%20%
More than 15%16%
1 more row
Feb 16, 2023

How many people have $5,000 in savings? ›

Unfortunately, 51% of Americans have $5,000 or less in savings. And 35% have $1,000 or less.

Is 3% good for a savings account? ›

Is 3% a high rate? In a word, yes. The national average savings rate as of October 2022 is 0.21% APY, according to the Federal Deposit Insurance Corp. That's a good deal higher than in the past — it was a paltry 0.06% in January 2022.

How much is $10000 at 10% interest? ›

If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.

How much is 10% interest on $10000? ›

The principal amount is Rs 10,000, the rate of interest is 10% and the number of years is six. You can calculate the simple interest as: A = 10,000 (1+0.1*6) = Rs 16,000.

How can I make 10% on my money? ›

How Do I Earn a 10% Rate of Return on Investment?
  1. Invest in Stocks for the Long-Term. ...
  2. Invest in Stocks for the Short-Term. ...
  3. Real Estate. ...
  4. Investing in Fine Art. ...
  5. Starting Your Own Business (Or Investing in Small Ones) ...
  6. Investing in Wine. ...
  7. Peer-to-Peer Lending. ...
  8. Invest in REITs.

How to save $5000 in 6 months UK? ›

How to save £5,000 in six months
  1. 1) Switch Your Supermarket. ...
  2. 2) Voucher codes or savings apps. ...
  3. 3) Replace a takeaway dinner with a Fakeaway. ...
  4. 4) Switch Your Energy Provider. ...
  5. 5) Switch Your Broadband provider. ...
  6. 6) Use cashback websites. ...
  7. 7) Move to a SIM only mobile phone plan. ...
  8. 8) Compare your car/home insurance.
Feb 24, 2020

How much do Brits save a month? ›

Monthly savings

The median monthly amount saved in the UK is about £180, and the average household savings per month is £450. Once again, this figure is more than the median figure as a small number of homes have very high savings rates.

How much does the average 70 year old have in savings UK? ›

Savings accounts: Five must-knows
Household savings by age UKAverage net financial wealthMedian net financial wealth
55 to 59£81,700£10,600
60 to 64£116,900£22,500
All persons£73,100£8,000
7 more rows
Feb 27, 2023

How to earn 15 percent interest? ›

Best way to get 15% p.a. on your investment
  1. Direct equity. Buying a part of a company from the stock market can prove beneficial because the company is growing, causing your investments to multiply. ...
  2. Real estate. ...
  3. Gold. ...
  4. Equity mutual funds. ...
  5. Debt mutual funds. ...
  6. PPF. ...
  7. FD.

What pays the highest interest rate? ›

Certificates Of Deposit With The Highest Interest Rates

A CD is a type of savings account that typically offers a higher interest rate than a traditional one. And while the interest rate on CDs can vary, some offer rates as high as 5.00% APY.

Should I take my money out of the bank 2023? ›

Despite the recent uncertainty, experts don't recommend withdrawing cash from your account. Keeping your money in financial institutions rather than in your home is safer, especially when the amount is insured. “It's not a time to pull your money out of the bank,” Silver said.

What to do with 50k UK? ›

  1. Investing £50k in property. While investing in property might be one of the safest and most profitable ways to invest £50k wisely, it isn't entirely without risk. ...
  2. Stocks and shares ISAs. ...
  3. ETFs. ...
  4. Stocks. ...
  5. Mutual funds. ...
  6. Bonds. ...
  7. Annuities. ...
  8. Peer-to-peer lending.

Where best to put $100,000? ›

  • Investing 100k In Real Estate. Many seasoned investors will argue that the best investment for 100K is in real estate. ...
  • Individual Stocks. Stocks are a great way to diversify your investment portfolio. ...
  • Investing 100k In ETFs & Mutual Funds. ...
  • Investing 100k In IRAs. ...
  • Investing 100k In Peer-To-Peer Lending.

What can I do with a large sum of money UK? ›

What should I do with my lump sum?
  1. Put it in a savings account - If you want to keep your money safe and let it earn interest, then a savings account is an option. ...
  2. Put it in a bank account - If you think you'll be spending money, then you could just keep it in your regular bank account.

How much is $100000 at 3% interest? ›

On a $100,000 mortgage at a 3% APR, your total interest costs would range from $24,304.70 to $51,777.45, depending on the loan term you choose.

How much interest does $100000 earn in a year? ›

How much interest can $100,000 earn in a year? If you put $100,000 in CDs, high-yield savings or a money market account for a year, you could earn anywhere from $3,000 to $5,000 based on current interest rates.

What is 10% interest on $1000000? ›

How much interest does $1 million make per year? Forbes reports that, on average, investors can expect about a 10% annual return on the S&P 500 — that's $100,000 per year, provided you reinvest at least some of the dividends. However, your return depends on several different factors.

Which bank gives 7 interest monthly? ›

Equitas SFB offers 3.50% on balances up to Rs 1 lakh, 5.25% on balances above Rs 1 lakh to 5 lakhs. For above Rs 5 lakh, the bank is offering 7%. These rates are effective from December 14, 2022.As per the website, “Interest will be calculated on the daily closing balance of the account.

Which first direct account gives 7% interest? ›

Get into a good savings habit. With our Regular Saver Account, put away between £25 to £300 each month, for a fixed 12 month term, and we'll give you a fixed rate of 7.00% AER/gross p.a.

Which bank pays the highest interest on savings account? ›

Best High-Yield Savings Account Rates
  • Popular Direct – 4.85% APY.
  • CIT Bank – 4.85% APY.
  • UFB Direct – 4.81% APY.
  • Upgrade – 4.81% APY.
  • Laurel Road – 4.80% APY.
  • Panacea Financial – 4.80% APY.
  • Ivy Bank – 4.80% APY.
  • TAB Bank – 4.76% APY.

What bank currently has the highest savings interest rate? ›

These accounts currently have the highest rates right now:
  • Western Alliance Bank High Yield Savings Account, powered by SaveBetter: 5.05% APY.
  • M1 High Yield Savings Account: Up to 5.00% APY.
  • Primis Savings: 4.92% APY.
  • Popular Direct Savings: 4.85% APY.
  • First Foundation Bank Online Savings Account: 4.85% APY.
1 day ago

Which bank gives 8% interest? ›

Senior citizen FD interest rates
BankInterest ratesTenor
DCB Bank8.50%15 months to 24 months
IDFC First Bank8.25%18 months - 1 day - 3years
IndusInd Bank8.25%1 Year 6 months to 2 years 9 months,
Axis Bank8.01%2 years to less than 30 months
5 more rows
Apr 16, 2023

How do I get 10 percent interest on my money? ›

How Do I Earn a 10% Rate of Return on Investment?
  1. Invest in Stocks for the Long-Term. ...
  2. Invest in Stocks for the Short-Term. ...
  3. Real Estate. ...
  4. Investing in Fine Art. ...
  5. Starting Your Own Business (Or Investing in Small Ones) ...
  6. Investing in Wine. ...
  7. Peer-to-Peer Lending. ...
  8. Invest in REITs.

What is the monthly payment on a $100000 loan at 7%? ›

At a 7.00% fixed interest rate, a 30-year $100,000 mortgage may cost you around $665 per month, while a 15-year mortgage has a monthly payment of around $899.

Which account is best for gaining the most interest? ›

Rates and minimum deposit: CDs tend to have the highest interest rates of the three types of savings accounts.

Which ISA has the best interest rate UK? ›

Best easy-access cash ISAs
Bank or building societySavings rateMinimum opening amount
Yorkshire Building Society3.60%£1
Leeds Building Society3.55%£1,000
Chorley Building Society3.55%£1
Gatehouse Bank3.55%£1

What is the rule of 72 for savings account? ›

It's an easy way to calculate just how long it's going to take for your money to double. Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.

Can you get 6% on a CD? ›

Can you get 6% on a CD? Savers who don't mind locking up their funds for a specified amount of time can earn 6% interest on a CD.

Does Bank of America have high-yield savings account? ›

Bank of America offers just one interest-bearing savings account: the Bank of America Advantage Savings. This account requires a $100 opening deposit and an $8 monthly maintenance fee, which is easily waivable by maintaining a minimum balance of $500.


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