Here, we take a closer look at what the Halifax Reward account is now offering so you can decide whether this could be the right new deal for you.
What’s the deal?
Anyone switching their current account to a Halifax Reward account by the end of the year will get a £100 switching bonus - as well as qualify for a new cashback scheme.
Newly-launched Cashback Extras allows all Halifax current account holders - not just those with Reward accounts - to get cashback on their everyday spending at selected stores. The cashback scheme is being rolled out to account holders from mid-September, and all account holders will benefit from the new service by the end of the month. So how does it work?
You can earn between 5% and 15% on your spending at retailers including Morrisons, Ocado, Argos and Homebase. To use the scheme, you'll need to register for online banking, then just log into your Halifax account, click on cashback offers and choose the retailers you are interested in – which could be all of them.
When you hand your Halifax debit or credit card over the counter at your chosen retailers (or use them to pay on their websites), you will generate cashback at the stated amount which will then be paid straight into your Halifax current account at the end of the following month.
Halifax claims that customers can earn more than £100 cashback a year just by buying the things they would anyway.
As well as the switching incentive and cashback, the Reward account also offers a £5 monthly payment each month. To qualify for this, you need to pay a minimum of £750 a month into your account, pay out two different direct debits and stay in credit.
Who’s it good for?
The Reward account will suit anyone who stays in the black every month, and who is fed up with their existing current account and wants a better value option.
However, it won’t be the right choice for those who tend to dip into the red regularly, as not only will you not be eligible for the £5 monthly reward, but you’ll also have to pay daily overdraft fees each time you go overdrawn by £50 or more.
At £1 a day if you’re overdrawn by up to £1,999.99, £2 on overdrafts between £2,000 and £2,999.99 and £3 on overdrafts of £3,000 and above, these daily charges can soon mount up.
Although the £100 switching incentive is available to both new and existing Halifax customers who want to move to the Reward account, if you’ve received a Halifax switching offer since January 2012, you can’t get this offer.
Remember too that you’ll have to stay in credit to qualify for the £5 monthly Reward, which isn’t always easy if you’ve got lots of outgoings.
What’s the verdict?
Once you tot up the £100 switching incentive, the potential of more than £100 in cashback and the £5 monthly payment offered by the Reward account, anyone moving to this current account could be looking at more than £250 in total rewards over the first 12 months.
That’s pretty impressive, especially when you consider that all you have to do is switch your account and shop where you’d normally shop to benefit from cashback.
Another big benefit is that the new cashback scheme is available to both new and existing accountholders – all too often loyalty doesn’t seem to pay in the banking sector, so it’s good to see that people who’ve had their Halifax accounts for several years won’t miss out.
If you’re fed up with your existing current account, then there’s seldom been a better time to switch.
Moving accounts should now be much quicker and more straightforward following the introduction of the new Current Account Switch Service on September 16. If you’re not certain how the new system works, you can find out more with our 7-Day Switch hub.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.