The general consensus appears to be that the Nationwide Flex account in conjunction with the associated E-Savings account are the best at this time.
They offer good interest rates on the savings side with instant transfers between the current and savings account, plus they do not charge anything for withdrawals in European cashpoint machines :)

Details for the FLEX account are Here Current Interest rate for the E-Savings account is Here at time of writing this is 3.5% Gross or 2.8% NET for £1 - £2000,000