Current account with interest: The flexible alternative to savings accounts

With an interest-bearing current account, your money remains available at all times, and earns you regular interest.
Among the diverse range of options for savers, the interest-bearing current account offers an especially flexible way to increase the amount of money going directly to your account. In this article you'll learn how an interest-bearing current account works and what benefits it can offer you in your everyday life.

Advantages of the BBVA current account

3% p.a. to your current account, just like that

For the first 6 months on credit balances up to €500,000.

Credit? Automatically credited

The interest is directly credited to your account every month.

Permanently free

Your current account is 100% fee-free, and will stay that way over the long term.

Interest that lasts

After the first 6 months you will receive a variable interest rate for 5 years.

How does an account with interest work?

With a current account that pays interest, your balance has a variable interest rate that is usually calculated annually. This way you can earn interest without having to forgo direct access to your money. Unlike with a daily savings account, you can use the interest-bearing current account for your daily payment transactions – such as for transfers, card payments and direct debits.

Interest on current account balances

Acquiring interest means your money doesn't just sit unused in your account, but can help to partially offset any loss of value due to inflation. Without interest your savings lose purchasing power over time. However, banks rarely offer interest on current accounts – a daily savings account is more common for interest-bearing savings without fixed terms. It's important to note that interest rates on current accounts are often lower than those on daily savings accounts, regular savings accounts, or fixed-term deposit accounts. 

Your free current account with 3% interest p.a.

Open your BBVA current account in just a few minutes. No account management fees, no hidden costs.

What is the difference between a BBVA current account and a daily savings account?

BBVA does not currently offer a separate daily savings account. However, the current account has a similar function, as it allows you to accumulate interest based on your balance. Simple, flexible and immediately usable.

Feature

BBVA current account

Daily savings account (general)

Purpose

Everyday account for personal income, payments and withdrawals

Savings account for short-term investments

Payment transactions

Fully usable features: Bank transfers, direct debits, card payments

Only transferring to a reference account is not possible

Interest

3% p.a. for 6 months, then a variable interest rate on balances up to €500,000

Varies depending on the provider

Cashback

3% off purchases made with the debit card during the first 6 months (up to €63 total)

No cashback

Cost

Free forever and no conditions, such as a salary deposit or a minimum balance.

Usually free

Card feature

Free Mastercard debit cards (physical & digital) included

No card included

Saving features

Integrated savings box with interest and up to 5 savings goals

A basic savings account, usually without additional features

Availability

Available anytime via app and card

Access via bank transfer to reference account

How do you calculate your interest gains?

The bank applies an annual interest rate to the account balance. These interest payments are calculated and credited periodically (monthly, quarterly, semi-annually or annually) depending on the bank's terms and conditions.

With BBVA, interest is calculated daily. For the calculation, you divide the annual gross interest rate of 3% proportionally over each day (3% x daily balance/365 days). The total interest amount earned during the month will be credited to your account at the beginning of the following month once taxes are deducted.

How do you calculate the interest rate on a current account?

Smarter than a savings account: Discover BBVA Savings Box

BBVA's digital Savings Box is a smart additional feature included in BBVA's current account. It offers a modern and flexible way to set aside money directly in your current account and earn interest in the process. As an integral part of BBVA's interest-bearing current account, it is available free of charge and enables you to have up to five separately definable savings goals.

Particularly practical: You can set automatic Savings Rules, such as a fixed percentage of your income or rounding up purchases, with the difference going directly into the Savings Box. This way saving money becomes part of your everyday life, without any effort.

The balance in the Savings Box earns the same interest rate as the rest of the current account, which is currently 3% p.a. for the first 6 months. After that, a variable interest rate applies that is based on market conditions. The customer is notified of this every quarter.

What you should consider before opening a current account with interest

Before you open an interest-bearing current account, it is important to consider a few factors:

  • Interest rate: Compare different offers to find the best available interest rate.
  • Fees: Some current accounts include account maintenance fees or other costs. Review the terms and conditions carefully.
  • Terms and conditions: Some accounts require a minimum balance, others require regular salary deposits. There are other terms and conditions in order to earn interest or avoid fees. Make sure that you are aware of these requirements.
  • Accessibility: Review how easy it is to access your funds, for example, through cash withdrawals or transfers.
  • An alternative to savings accounts: Consider whether an interest-bearing current account is the best choice for you. Other savings products such as savings accounts or fixed-term deposits may offer a better return.

 

The BBVA current account with 3% interest p.a.

BBVA's Free Forever Current Account offers you the opportunity to increase your account balance easily, securely, and automatically without tying up your capital. You benefit from 3% interest p.a. on your balance for the first 6 months, without any conditions such as minimum amounts or salary deposits.

After the 6 months, a long-term interest rate is still guaranteed, and you will be informed every 3 months about the current interest rate according to market conditions. 

FAQs on the current account with interest

Calculate the return on your BBVA current account with 3% interest p.a.

Others also found interesting