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Reward current accounts

Compare deals and switch today

Find a bank account with rewards and cashback

Compare current accounts from right across the market

We'll do the hard part, so you don't have to. We work with a range of leading current account providers to make managing your money simple

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What is a reward current account?

Reward current accounts can offer a range of benefits from cashback and discounts when you spend using the account, to loyalty points and even boosted interest on your in-credit balance.

You could earn cashback on your household utility bills, for example, or money back when you spend with high street retailers.

 

What are the most common rewards I can expect?

There are different types of perks and rewards depending on the account, they could feature:

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    Cashback

    Earn varying amounts of cashback when you shop at selected retailers or pay your household bills.

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    Discounts

    Take advantage of exclusive deals for account holders on good and services, including savings at high street retailers and weekend trips 

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    Other perks

    Other extras might include worldwide travel insurance and free 16-25 year old discount railcards

How to choose the best reward current account

The best reward current account will depend on your priorities, but here are three of the main areas to consider...

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    Choose rewards you’ll use

    Make sure the rewards on offer as part of the account deal work for you. For example, cashback at selected retailers could be great, but only if you shop regularly at those stores.

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    Will you need an overdraft?

    If you think you'll occasionally slip into the red compare overdraft rates on reward accounts. But if you regularly rely on an overdraft look for other current accounts with lower overdraft rates.

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    Check the fees

    Not all rewards accounts are free. It’s worth being confident the benefits you’ll receive from your reward current account will outweigh any monthly or annual account fee 

What are the pros and cons of a reward current account?

A rewards current account can be a great way to make your money work harder and give you some perks. But there are downsides if you don’t use them correctly...

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    The pros

    • Earn cashback or rewards every time you spend through the account

    • Boosted interest may be offered on in-credit balances up to a certain balance

    • Get a cash lump sum or another type of reward simply for switching 

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    The cons

    • You may have to pay a monthly or annual fee

    • You may have to pay in a minimum amount each month to qualify for rewards

    • Overdraft charges could be higher than on standard current accounts

What are the alternatives to a reward current account? 

There are different options if you’re looking to switch your current account and want to take advantage of cashback, perks or added benefits. Alternatives to ongoing rewards accounts include:

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    Switching incentives

    Many banks pay a one-off cashback lump sum as an incentive to switch to them. This could be as much as £150 for example. You might also get discount vouchers, wine or other one-off rewards

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    Packaged accounts

    Accounts which offer extra benefits as standard, such as travel insurance, car breakdown cover and gadget insurance, for example. They tend to charge a monthly or annual fee. But they can be good value if you know you’ll make use of the benefits

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    High interest

    If you’re usually in credit it could pay to choose a current account paying high interest on your balance. Rates can often be higher than those paid on leading savings accounts, although they tend to only pay interest up to a maximum cap

Why compare reward current accounts with us?

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    Browse our providers

    Search our best reward current accounts to find one to suit your needs

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    Filter and sort

    Compare and review the various rewards on offer

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    Click through to provider

    Click directly through to the provider to complete your application

 

Cashback is typically when you receive money back on certain types of spending, such as bill payments and purchases, often with selected retailers. It is generally paid as a percentage of the money spent and credited back to the current account where the purchase was made. 

A lump sum of cashback might also be offered to customers as an incentive to switch current accounts. 

 

There’s no limit to the number of online bank accounts you can have. You could, for example, have one for personal use, one joint account for household bills, and another for business expenses. However, some of the best accounts require you to pay in a certain amount – for example £1,000 – a month. If you’re bad at managing money, having several accounts could also make it even harder to keep track of your finances. 

 

Some types of current account rewards are taxable. Monthly cash payments, for example, can be classed as annual payments or, if you pay a fee to receive them, miscellaneous income.

Banks should deduct 20% tax before you receive your annual payments – although you will need to pay more tax on them if you are a higher-rate taxpayer. Miscellaneous income, meanwhile, is paid before tax, meaning taxpayers may need to declare it.

Other types of rewards, such as cashback switching incentives, are classed as discounts and are not subject to tax.

 

Cashback current account terms vary, but typically the more you spend – with approved partners such as chain stores and energy companies – the more cashback you earn.

That said, most banks cap the total amount you can earn in a year, as well as restricting the type of spending on which you can earn cashback.

You may, for example, be able to earn up to 15% cashback when you make a purchase with a particular retailer, up to a maximum of £150 per year.

 

You may find it harder to get a reward account with a bad credit score. Banks will run a credit check on your finances before making a decision and they’ll also have their own specific criteria. If you are worried about having bad credit our guide can help with steps to improve your credit score.

If you are opening a cashback current account to take advantage of a switching incentive, opening two accounts will earn you and your partner more than if you just open one joint account.

If, however, you are opening a joint account to pay household bills, a cashback account offering cashback on bill payments, for example, could be a good choice. 

Switching current accounts to take advantage of better interest rates and rewards is easy with MoneySuperMarket, where you can compare online accounts by the interest rates they pay, the overdraft rates they charge, the rewards they offer, and level of customer service they provide.

Just use our comparison service to find the right online bank account for you, then fill in the information required by the account provider (name, date of birth, etc.) and supply the necessary documents to confirm your identity and address.

The switching process should take no more than seven working days with the Current Account Switch Service, and all the fiddly bits like switching across your direct debits should be taken care of by your new account provider.