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
When you open a Biscuit current account, you can choose the benefit that works for you. Choose between cashback on bills and cashback on eating out – or you can boost your bank balance with 2.75% AER* (2.72% gross**) variable interest.
See how Biscuit’s interest rate compares with high street banks and building societies:
| Bank account | Value | Interest on current account balance (AER* / gross**) | Balance cap | Fixed or variable |
| Zopa Biscuit | £120.45 | 2.75%* (2.72%**) | 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 |
Last updated | August 2026
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.
*AER stands for 'annual equivalent rate'. We pay you interest on a monthly basis, but AER shows you the rate you’d get if this monthly interest was compounded and paid once a year instead. We provide an AER to make it easier for you to compare our rates with other providers.**We pay gross interest, which means nothing is deducted for tax. 'Variable' rate means your interest can go up or down. We may review it when the Bank of England base rate changes and we’ll always let you know if we make any updates.
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.
Current accounts can offer more than interest on your balance
Some current accounts combine interest with access to cashback. With Biscuit from Zopa, you can choose between:
3% cashback on eating out – on up to £150 a month
3% cashback on bills – on up to £150 of Direct Debits a month
2.75% AER (variable) on your balance - with no cap on how much you can earn
If you pick a cashback benefit you still get 1% AER (1% gross) variable on your balance, a free Caffè Nero drink every month and fee-free spending abroad as standard.
Learn more about cashback on current accounts.
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 a current account that pays interest on your balance
Open a Biscuit current account in the Zopa app. It only takes a few minutes.
