Current accounts - SEO page - Reward and cashback bank accounts

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 Cashback

    Great for
    Get up to £160 cashback in the first year - made up of £100 for switching an active bank account held elsewhere to Halifax. Your switch is covered by the Current Account Switch Guarantee
    and 12 monthly £5 reward payments - receive £5 each month that you pay in £750, pay out 2 Direct Debits and stay in credit
    But be aware that
    To qualify for £100, use the Current Account Switch Service to transfer all active monthly Direct Debits (min 2) and credits (min £750). Excludes customers who've had £100 for switching to a Halifax bank account since Jan 2012
    To open a Halifax Reward Current Account you need to set up at least 2 active Direct Debits and pay in every month (minimum £750)

    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.

  2. Great for
    £100 cash back when you switch using The Co-operative Bank switching service
    The Co-operative Bank will also donate £25 to charity
    But be aware that
    Minimum monthly funding £800
    Terms apply for the £100 offer. See 'more details' page or visit providers site for full details

    Representative Example:

    The advance of credit of £1,200 at an interest rate of 18.9% EAR variable per annum. For any agreed overdraft amount over £200 a formal overdraft service charge of £20 per annum will be charged when The Co-operative Bank agree the overdraft limit and at renewal.

  3. Great for
    £100 cash back when you switch using The Co-operative Bank switching service
    The Co-operative Bank will also donate £25 to charity
    But be aware that
    Terms apply for the £100 offer. See 'more details' page or visit providers site for full details

    Representative Example:

    The advance of credit of £1,200 at an interest rate of 18.9% EAR variable per annum. A formal overdraft service charge of £20 per annum will be charged when The Co-operative Bank agree the overdraft limit and at renewal.

  4. £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
  5. £100 Cashback

    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.

  6. £100 Cashback

    Great for
    £100 cashback for switching an active bank account held elsewhere to Halifax. Your switch is covered by the Current Account Switch Guarantee
    Account holders get 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 all active monthly Direct Debits (min 2) and credits (min £750). Excludes customers who've had £100 for switching to a Halifax bank account 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.

  7. Market leading

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

    Great for
    Cash back on your household bills
    1% cash back on your Santander Mortgage
    But be aware that
    £2 monthly account fee
    Minimum monthly funding of £500
  8. Great for
    Cashback every time you spend
    No credit check required
    But be aware that
    50p charge for ATM withdrawals in the UK
  9. Great for
    Award winning mobile banking - pay your contacts anytime
    Emergency Cash – access your money at ATMs if you lose your debit card
  10. Great for
    LOVEFiLM and music downloads from hmvdigital
    Mobile phone insurance
    But be aware that
    Monthly fee of £10
  11. Great for
    Worldwide travel insurance
    UK car breakdown cover
    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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