The best UK bank accounts for cashback

The best UK bank accounts for cashback

Want to earn cashback through your current account? We reveal what you need to know about the top UK cashback current accounts on the market.

lovemoney staff

Banking and Borrowing

lovemoney staff
Updated on 20 September 2022

There are many benefits to using cashback credit cards wisely but not everyone likes using a credit card to pay for their spending.

If you prefer to manage your money with a debit card, you can still earn some extra cash by moving to the right current account.

We'll reveal the top cashback current accounts available now, although it’s also worth checking out our guide to the best switching bonuses as you may get paid to switch banks.

Chase - 1% cashback on all spend

JP Morgan offers a bank account via its digital bank, Chase. Account holders can get 1% cashback on all spending with their debit card for the first 12 months.

If you make £1,000 worth of qualifying purchases each month, that's a healthy £10 monthly return. 

You'll earn cashback when you spend in-store, online and on spending in both the UK and internationally.

You’ll also get access to a linked savings account, which offers 1.5% interest on balances of up to £250,000.

With the Chase account, you can also round your purchases up to the nearest £1 and deposit the change into a savings account with a 5% rate for a year, plus there are no fees when you use your card abroad.

You can check out loveMONEY’s full Chase review here.

Santander 123 – up to £11 a month + boosted cashback in September and October

The Santander 123 current account usually lets you earn up to 3% cashback on specific household bills, but the amount of cashback on offer has temporarily been doubled for certain bills in September and October.

You’ll be able to earn 4% cashback (up to £10 a month) on your gas and electricity bills, plus on Santander home and life insurance premiums over this period.  

The cashback cap for the other two tiers will remain unchanged at £5 per month each. Without the temporary cashback boost, cashback is capped at £5 per tier, meaning a maximum benefit of £15 a month.

There is a £4 monthly fee to consider so the most you can earn on bills is actually £11 a month (excluding the temporary boosted cashback offer).

There are effectively three cashback tiers:

  • 1% cashback on Council Tax bills, mobile and home phone bills, broadband and paid-for TV packages, as well as Santander monthly mortgage payments;
  • 2% cashback on gas and electricity bills as well as Santander home insurance and life insurance premiums (this is currently 4% or a maximum of £10 per month in September and October);
  • 3% back on water bills.

The amount these bills cost each household will obviously vary massively, so it's definitely worth doing your sums to ensure you'll earn enough to make switching worthwhile.

You can also earn cashback when you shop at certain retailers through Santander's Retailer Offers.

If you do want to join, note that you must pay in at least £500 a month and set up at least two Direct Debits to qualify for the cashback offers.

The account also pays 1% interest on savings of up to £20,000 held in the account, which might appeal to some.

It’s worth flagging you can get cashback (and the temporary boosted cashback) with the Santander Select account, but this isn’t for everyone as you must pay in at least £5,000 a month or keep £75,000 in any Santander investment, savings or current account. A monthly £4 fee also applies.

At the time of writing, you can get £175 cashback when you switch to an eligible Santander current account – find out more here.

If you only care about the cashback, then you'll be better off applying for Santander's cheaper alternative below.

Santander 123 Lite - up to £13 a month + boosted cashback in September and October

The Santander 123 Lite current account offers the same cashback perks, temporary boosted cashback and switching offer as the 123 account above, including access to Retailer Offers, but only charges £2 a month.

That means you can earn up to £13 each month on bills once you've paid the fee (excluding the temporary boosted cashback offer in September and October).

The main reason it's cheaper is that it doesn't offer the savings incentive on balances of up to £20,000 but, as you’re likely to get a better rate on your savings elsewhere, that's not really an issue.

To qualify for the cashback, you need to pay in at least £500 a month, have two active Direct Debits, log in to online or mobile banking at least once every three months and use online banking for documents and letters.

TSB - up to £5 a month

With TSB's free Spend & Save account you can earn £5 cashback a month provided you make at least 30 payments with the card each month.

Sadly, the cashback offer expires after six months, so that's a maximum of £30 you can pocket.

Alternatively, the bank's Spend and Save Plus current account has no end date for the cashback offer, but it comes with a £3 monthly charge. That means you can effectively only earn a maximum of £2 a month, or £24 a year.

There are no charges for using your debit card abroad if you have the Spend and Save Plus account.

Halifax - £5 a month + cashback at certain retailers

With the Halifax Reward account, you can choose one of the following perks every month:

  • £5 cashback;
  • two digital movie rentals;
  • three digital magazines;
  • one Vue cinema ticket.

To qualify, you’ll need to pay in at least £1,500 a month, stay in credit and either maintain a balance of above £5,000 or make payments worth £500 a month with your debit card.

That first requirement to pay in £1,500 is the most important one, as failure to do so will not only cost you a reward but you’ll also be hit with a £3 monthly fee.

It’s worth stressing that once you choose a monthly reward, this will be set for 12 months. So, you can’t alternate between cashback and free movies, for example.

You can get the same rewards with the Halifax Ultimate Reward account but this costs £17 a month. You can find out more about what's included in this account here

Halifax also offers access to a scheme called Cashback Extras (available with other accounts), allowing you to earn up to 15% cashback when you shop at certain retailers using your debit or credit card, in-store or online.

NatWest/RBS Reward - up to £3 a month 

NatWest and RBS operate several accounts which hand customers back some money and offer access to the Digital Regular Saver, which pays up to 5% interest depending on your balance.  

With the Reward account, you’ll get £4 a month back if you have two or more Direct Debits, with a further £1 back so long as you log into the mobile app at least once a month.

This account costs £2 a month, so the maximum you can earn back on the Reward account is £3 a month.

To be eligible for a NatWest/RBS Reward account, you’ll need to pay £1,250 into your account every month.

Once you’ve earned £5 in rewards, you can redeem it as cashback or trade for gift cards or e-codes with a retail partner, or even donate it to charity. You can also earn a further 1% back when you spend with certain partner retailers.

After that, there’s the Reward Silver account (available to existing current account customers only), which costs £10 a month.

You can earn the same £5 a month in cashback, but there are other benefits included with the account like mobile phone insurance, European travel insurance, cinema discounts and fee-free purchases overseas.

And there’s also the Reward Platinum account (available to existing current account customers only), which includes all of the above plus worldwide travel insurance and UK breakdown cover.

It will cost you £20 a month and it’s worth checking whether coronavirus cover is included in the travel insurance.

At the time of writing, you can get £175 when you switch to an eligible NatWest/RBS account. 

The Co-operative Bank - up to £2.20 a month

The Co-operative Bank operates a free Everyday Rewards scheme across many accounts, which allows you to earn a maximum of £2.20 each month or £26.40 a year.

You can choose to donate your cashback to charity if you wish. 

Here's a breakdown of what you'll earn:

  • £1 for every month you qualify for Everyday Rewards;
  • 2p per transaction up to a maximum of £1.20 or 60 transactions.

The Rewards scheme is available on Co-op Bank’s current account, Everyday Extra account, Current Account Plus, Privilege account and Privilege Premier account.

If you want to qualify, you'll need to pay in a minimum of £800 a month, set up at least four Direct Debits, stay in credit (or within your arranged overdraft limit), log in to the app or online banking at least once a month and opt-in for paperless statements.

Virgin Money – cashback at certain retailers + temporary 25% cashback offer

Virgin Money launched a cashback programme this year, which allows account holders to earn cashback when they spend with their debit card at specific retailers.

Cashback is paid directly into your Virgin Money current account or can be swapped for an e-gift card to use at participating stores.

At the time of writing, Virgin Money offers 25% cashback (up to £160) on your UK supermarket and fuel spend when you switch to the free M Plus account or Club M account (monthly fee applies).

You can only get 25% cashback for 60 days from the date you’re eligible to start earning cashback when you switch.

Both of the above current accounts offer a variable rate of 2.02% AER on balances of up to £1,000. You’ll also get access to a savings account that offers 1.71% interest on balances of up to £25,000 and 1% on balances above this amount.

Lloyds Bank - up to 15% cashback at certain retailers

Lloyds Bank offers customers with a Club Lloyds, Club Lloyds Platinum, Classic, Student or Basic account access to the Everyday Offers cashback scheme.

It allows users to earn up to 15% cashback when they shop at certain retailers using a debit or credit card, in-store or online.

Club Lloyds offers 0.6% interest on balances of up to £3,999 and 1.5% interest on balances between £4,000 and £5,000.

The account also offers the choice of either six cinema tickets, 12 digital movie rentals, an annual magazine subscription or an annual Gourmet Society membership, as well as Everyday Offers.

You’ll have to pay £3 a month if you pay in less than £1,500 a month into your account.

At the time of writing, you can get £150 when you switch to an eligible Lloyds bank account. 

Revolut - cashback at certain retailers

Mobile challenger bank Revolut offers discounts and cashback to current account customers when they shop with certain retailers.

The bank will then offer additional rewards that it thinks account holders will like based on their previous purchases.

The rewards scheme is completely free.

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