Current account interest rates compared
See which current accounts pay interest, compare the rates on offer, and find out what could affect how much you earn.
Which UK current accounts pay interest in 2026?
Not many. A few UK current accounts now pay in-credit interest – mostly from digital and challenger banks.
Accounts paying interest on current accounts include Biscuit from Zopa and Nationwide FlexDirect. Biscuit pays 2% AER while Nationwide FlexDirect pays 5% AER for the first 12 months.
The table below shows the full details and how the main high street options stack up:
Rates are shown as AER (Annual Equivalent Rate), the standard measure for comparing what you'll earn over a year.
Some are variable and can change; others are fixed for a set period.
Many accounts also cap the balance that qualifies.
All the accounts listed here have no monthly fees.
Current account interest rates compared
We've compared the interest rate on the Biscuit bank account to the interest rates given by current acounts from high street banks, and the results are shown in the table below.
Last updated: July 2026
| Bank account | Value | Interest on current account balance (AER) | Balance cap | Fixed or variable |
| Zopa Biscuit | £89.20 | 2% | No balance cap | Variable |
| Nationwide FlexDirect | £75 | 5% for first 12 months, 1% after | Up to £1,500 | Fixed |
| Halifax Current Account | £0 | 0% | n/a | n/a |
| HSBC Bank Account | £0 | 0% | n/a | n/a |
| NatWest Everyday Current Account | £0 | 0% | n/a | n/a |
| Santander Everyday Current Account | £0 | 0% | n/a | n/a |
How we collect and update interest rate data: Rates on this page are checked and updated on the first working day of each month by the Zopa editorial team. All figures are sourced directly from each bank's published rates pages.
What is AER and how is current account interest calculated?
AER – annual equivalent rate - is the standard measure for comparing what you'll earn on a balance over a year, whether that's interest on your current account or on a savings account.
Nationwide's 5% AER applies to a maximum balance of £1,500 and expires after 12 months – so you'll earn a maximum of £75 in year one.
With Biscuit from Zopa, there's no balance cap or time limit, so you could earn more over time.
Read our full guide on how current account interest works.
Earn more than just interest
Current accounts with cashback
Some current accounts combine in-credit interest with cashback on household bills. Take Biscuit, for example:
2% AER (1.98% gross) on your everyday balance
2% cashback on up to £125 of Direct Debits each month
No monthly fee
Estimated annual value: £192+ with a linked Regular Saver
For a full breakdown of how cashback works and which bills qualify, see our guide to cashback on current accounts.
See how Biscuit compares to other accounts and how we calculated the £192.
Current account interest vs savings account rates
What's the difference?
Easy access
A current account keeps your money working while staying fully accessible day-to-day.
Higher rates
Dedicated savings accounts typically pay higher rates – but your money is less flexible.
Why not both?
A Biscuit current account gives you easy access to your money and pays interest too.
Read our article on current accounts vs savings accounts for the full comparison and analysis.
Current account interest rate FAQs
Tuck into the best free bank account for everyday value
Cashback on bills, interest on your balance, a market-leading Regular Saver rate – Biscuit gives you more for the money you're already spending.
Open a Biscuit current account in the Zopa app. It only takes a few minutes.
