With interest rates being cut throughout the whole of the savings market and with very few areas unaffected, current accounts continue to offer savers a welcome alternative with returns far above what is available elsewhere.
 
There are a number of different types of account, with various ways that savers can take advantage.
 
First and most obvious are High Interest Current Accounts which offer competitive rates, in most cases well above what is available on standard savings accounts.
 
The highest rate currently is 5% AER, available from both TSB Bank and Nationwide. Whilst there are a number of hoops to jump through, you do not have to switch your main current account to take advantage.
 
If you are looking for a more straightforward account with fewer rules to satisfy, Tesco Bank’s Current Account offers 3% AER, a rate still far ahead of the best easy access account on the market.

Also available are Cash Incentives, designed to attract new customers and whilst these do not offer an interest rate, the initial incentive can be a real boost to your overall returns for the year.
 
One of the largest incentives is from M&S Bank, which is offering up to £220 in M&S gift cards, £100 when you switch your current account and then an additional £10 per month for 12 months, subject to terms and conditions.
 
The latest incentive came from HSBC, which is offering £150 to switch to a new Advance or Premier Account and then a further £50 if you stay for 12 months, subject to terms and conditions.

The downside to cash incentives is that to take advantage you usually have to switch your main current account.