Reward & Cashback current accounts

A number of bank and building societies offer generous cashback or rewards if you transfer your current account to them. So why not see if you can get something for nothing by switching your account now?

Switching Cashback Current Accounts - Ordered by the amount of Cashback/Reward

  1. Cashback

    New customers get £200 when they switch and stay. T&Cs apply.

    Great for
    £150 when you switch to the HSBC Advance Bank Account using the Current Account Switch Service with 2 direct debits or standing orders within 30 days of account opening
    Receive a further payment of £50 – 12 months later, when you register for Mobile or Online Banking within 60 days of account opening
    But be aware that
    HSBC Advance Bank Account requires minimum monthly funding of £1,750. Switch Offer T&Cs apply
    You must continue to meet account eligibility criteria in order to receive the payment

    Representative Example:

    If you use an overdraft of £1,200 on an HSBC Advance Bank Account, the overdraft rate HSBC will charge is 17.9% EAR (variable). If you switch to the HSBC Advance Bank Account using the Current Account Switch Service, your rate will be 0% for the first 6 months. EAR is Effective Annual Rate. This takes account of the interest rate and how often interest is charged, and does not include any other fees or charges. Overdrafts are subject to status.

  2. Cashback

    Receive £100 cashback when you switch your current account to first direct- T&Cs apply

    Great for
    Receive £100 cashback and access to £250 interest free overdraft when you switch your current account to first direct – overdraft subject to status
    Earn a market leading 6% interest from first direct's regular saver and access preferential mortgage rates - open to first direct banking customers only
    But be aware that
    Minimum monthly funding of £1,000
    No interest paid on balances in credit

Ongoing Rewards – Ordered by highest ongoing cashback over the first 12 month period

  1. Rewards

    Top 20% of NatWest Reward customers earn on average, £217 in Rewards per year. T&Cs apply

    Great for
    3% back on seven household bills (Council Tax, Mobile, Landline, TV Package, Water, Gas, Electricity & Broadband) with unlimited rewards if paid by Direct Debit
    Top 20% of Natwest Reward customers earn, on average, £217 in Rewards per year. Based on their average Dec'15/Jan'16 Direct Debit amounts. Excludes monthly £3 fee
    But be aware that
    £3 monthly fee
  2. Great for
    3% back on seven household bills with unlimited rewards if paid by Direct Debit. Top 20% of NatWest Reward customers earn, on average £217 in Rewards per year. Based on their average Dec'15/Jan'16 Direct Debit amounts. Excludes monthly £12 fee
    Includes many lifestyle benefits such as European multi trip travel insurance, preferential rates on travel money, mobile phone insurance & tastecard membership. Account terms & conditions apply
    But be aware that
    £12 monthly fee
  3. Great for
    3% back on seven household bills with unlimited rewards if paid by Direct Debit. Top 20% of NatWest Reward customers earn, on average, £217 in Rewards per year. Based on their average Dec'15/Jan'16 Direct Debit amounts. Excludes monthly £18 fee
    Includes many lifestyle benefits such as Worldwide multi trip travel insurance, UK car breakdown cover, mobile phone insurance & tastecard membership. Account terms & conditions apply
    But be aware that
    £18 monthly fee
  4. Great for
    Earn up to £15/month loyalty rewards
    Earn enhanced cashback at over 100 online retailers and Expedia when you shop through SmartSpend
    But be aware that
    £3 monthly fee
    Pack fees range from £6 to £15.50 per month
  5. 2016 SUPERS

    Winner of the Best Overall Provider

    Great for
    5% AER for balances up to £2000
    With 5% Cashback on your first £100 Contactless payments every month (T&Cs apply). Subject to eligibility. Ends Sept 2017.
    But be aware that
    The Classic Plus Account is subject to application and approval
    To earn 5% AER on the Classic Plus Account credit your account with a minimum of £500 each month, register for internet banking, paperless statements and paperless correspondence
  6. 2016 SUPERS

    Winner of the Best 'Loyalty’ Current Account Provider

    Great for
    Monthly cashback on selected household bills
    Monthly interest of 3% AER (variable) payable on your entire balance up to £20,000, when you have at least £3,000 in your account
    But be aware that
    A £5 account fee will be taken from your account each month
    You must pay in at least £500 each month 

Reward and Cashback accounts

What is a cashback account?

A cashback account is an account which gives you a cash bonus or reward when you switch to it. The cash is offered as an incentive by banks and building societies to persuade people to move their money across from another provider. Sometimes however, the reward may take a different form. For example, if the account is a packaged account with a monthly fee, the fees may be waived for a set period of time. Most of the accounts that offer cash incentives or rewards are current accounts.

Who do they suit?

Reward current accounts that pay a cash bonus when you switch often come with strings attached, or may not always necessarily offer the most competitive rates of credit or overdraft interest, which will mean they won’t be suitable for everyone.

You should always check whether the account is appropriate for your needs before moving, otherwise the benefit of the cash bonus or reward could be cancelled out. For example, if you tend to be overdrawn frequently and switch to a reward bank account purely because it is offering cashback, but it has expensive overdraft charges, you might be better off with an account with no cash bonus, but low overdraft fees.

Benefits

The benefits of this type of cash back current account are clear – a cash lump sum or other reward when you switch your account over. Given today’s low interest rate environment and how difficult it can be to earn decent returns, this kind of incentive can be extremely valuable when it comes to giving your savings an extra boost. You usually get paid the cash back within three months of moving your account across to the new provider.

Negatives

It’s easy to be tempted by cash back current accounts while ignoring what else the account is actually offering. Remember that if you go overdrawn regularly, you should check the overdraft charges, or if you tend to keep a large balance in your current account, you must find out how much interest you will earn if you are in credit.

You may be required to pay in a minimum amount each month to qualify for the switching incentive offered by the reward account. Bear in mind too that if you don’t meet this minimum deposit, in some cases you may be changed a monthly fee, which would soon wipe out the benefit of a cash bonus for switching. Some banks require that you pay in your salary each month, so always read the small print carefully first.

Alternatives

If you can’t pay in a certain amount each month and therefore won’t qualify for a cash reward, then choose a current account that doesn’t require regular monthly deposits. There are plenty to pick from, so you should choose one that is appropriate for your needs – think about how you run your current account before moving, so that you know whether an account with high interest when you’re in credit or an account with low overdraft charges will suit you best.

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