Interest rates on savings accounts have taken a battering in recent months, but there are still some current accounts that can offer respectable returns.
However, getting the best deals can come with strings attached. Customers must often meet a range of criteria to qualify.
For example, providers may ask for direct debits to be set up and for minimum sums to be paid in each month, while certain accounts charge fees.
We’ve highlighted the top payers and the requirements of each account. For tips on saving, read our guide on how to save money in 2021.
Best high-interest current accounts
Virgin Money M Plus
Virgin Money’s M Plus account offers 2.02pc interest on up to £1,000. Switchers will receive a £150 Gift Card with Virgin Experience Days, which can be used on activities such as track days, flying lessons and spas.
What’s the catch? The offer is only available to those who don’t already have a Virgin Money, B, Clydesdale Bank or Yorkshire Bank current account.
Nationwide’s FlexDirect pays the second highest rate of 2pc, on a balance of £1,500. This account makes less demands of customers than some of the others. Customers do not need to set up a direct debit or pay a fee to qualify for the account. However, it requires £1,000 to be paid in each month.
What’s the catch? This attractive rate is only paid for the first year. Once the 12-month introductory period is over, it drops to just 0.25pc. The rate will also fall if customers fail to meet the account criteria.