Reward 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?

Reward and cashback accounts - Ordered by the amount of Cashback/Reward received

  1. Up to £160 reward

    Great for
    Earn up to £160 reward in the first year - made up of £100 for switching. Your switch is covered by the Current Account Switch Guarantee
    and 12 x £5 reward each month you pay in £750+, pay two different Direct Debits and stay in credit
    But be aware that
    To qualify for £100, use the Current Account Switch Service to transfer and close your old account held elsewhere. Excludes anyone who's had £100 for switching since Jan 2012
    Account terms and conditions apply
  2. £100 Cashback

    Receive £100 cashback when you switch

    Great for
    £100 cash back when you switch
    Satisfaction guarantee
    But be aware that
    Minimum monthly funding of £1,000
    No interest paid on balances in credit
  3. Great for
    A standard current account for your day-to day banking

    Representative Example:

    If you use a planned overdraft of £1,200, then Halifax will charge you £1 a day when you use it. Overdrafts are subject to status.

  4. £100 reward

    Great for
    £100 reward for switching. Your switch is covered by the Current Account Switch Guarantee
    Worldwide family travel insurance, car breakdown cover, mobile cover and more, provided by selected third parties
    But be aware that
    To qualify for £100, use the Current Account Switch Service to transfer and close your old account held elsewhere. Excludes anyone who's had £100 for switching since Jan 2012
    £15 monthly fee. This is reduced to £10 in each calendar month you pay in £750 or more, pay out two different Direct Debits and stay in credit

    Representative Example:

    If you use a planned overdraft of £1,200, then Halifax charge you a daily fee of £1. For Ultimate Reward Current Accounts, you will pay the higher monthly account fee of £15 rather than £10 if you use your overdraft. This means there will be an additional indirect cost of £5 if you use a planned overdraft on this account. Overdrafts are subject to status.

  5. £100 M&S Gift Card

    £100 M&S Gift Card reward when you switch using the Current Account Switching Service

    Great for
    Earning M&S points for debit card spending - One point for every £1 spent, 100 points equate to £1 in M&S vouchers
    £100 overdraft buffer if you dip into the red
    But be aware that
    To qualify for the £100 gift card you must use the Current Account Switch Service

    Representative Example:

    0% EAR variable on the first £100. 15.9% EAR variable thereafter.

  6. Market leading

    Best rate for balances between £3,000 and £20,000

    Great for
    Cashback on your household bills
    1% cashback on your Santander Mortgage
    But be aware that
    £2 monthly account fee
    Minimum monthly funding of £500
  7. Great for
    Cashback every time you spend
    No credit check required
    But be aware that
    50p charge for ATM withdrawals in the UK
  8. Great for
    Earn a minimum of 1% cashback at selected retailers and an additional 1% cashback on contactless purchases
    Award winning mobile banking - pay your contacts anytime
  9. Great for
    Ticket booking service, receive 25% cashback on tickets for theatre, dance, opera, concerts and more
    European travel insurance including winter sports, plus mobile phone insurance
    But be aware that
    Monthly fee of £10
  10. Great for
    Worldwide travel insurance and preferential rates on Travel Money
    Other benefits such as National Trust site visits and a free tastecard
    But be aware that
    £16 fee per 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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