The best bank accounts for cashback

Many banks try to entice new customers with cashback. We reveal how much you could earn with different accounts from the likes of Lloyds, Halifax, NatWest and more.

We regularly write about the benefits of 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 extra cash by moving to the right current account.

Here are some of the top cashback current account offers available right now.

Of course, pair them with a cashback credit card and you can earn even more!

Lloyds Bank

Lloyds Bank offers current account customers 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.

Lloyds Bank, Halifax and Bank of Scotland launch Direct Debit cashback offers

Club Lloyds offers 1.5% interest on balances up to £5,000 and the choice of either six cinema tickets, 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 then £1,500 a month.

Halifax

Halifax offers access to a scheme called Cashback Extras, allowing you to earn up to 15% cashback when you shop at certain retailers using your debit or credit card.

The offer applies to the basic, student, Reward and Ultimate Reward current accounts.

The Reward current account may be worth looking at.

It pays £2 a month, providing you credit the account with at least £750 each month, pay out at least two Direct Debits per month and manage to stay out of the red.

Santander 123 Lite

The Santander 123 Lite Current Account offers up to 3% cashback on specific household bills.

You can get 1% cashback on water bills, Council Tax and the first £1,000 you pay towards your Santander residential mortgage.

You can also get 2% cashback on gas and electricity bills plus Santander home insurance and life protection premiums, as well as 3% on mobile, home phone, broadband and pay TV packages.

If you use online or mobile banking, you’ll also be able to earn up to 15% cashback when you shop in store and online with your debit or credit card at certain retailers via the Retailer Offers scheme.

The 123 Lite Current Account attracts a £1 monthly fee.

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

Santander 123

The Santander 123 Current Account also offers cashback on your household bills.

You’ll get 1% on water and Council Tax bills, as well as the first £1,000 you pay towards your Santander residential mortgage.

You’ll benefit from 2% cashback on gas and electricity bills as well as Santander home insurance and life protection premiums; and 3% on mobile, home phone, broadband and paid-TV contracts.

This account also allows you to earn 1.5% interest on balances up to £20,000.

If you use online or mobile banking, you’ll also be able to earn up to 15% cashback when you shop with your debit or credit card at certain retailers through the scheme Retailer Offers.

To qualify for these perks, you must fund the account with at least £500 a month and set up at least two Direct Debits – you'll probably want to set up all your eligible bills to earn cashback on them.

The Santander 123 accounts costs £5 a month.

NatWest and RBS Reward

NatWest and RBS offer the Reward account, a current account which pays cashback on seven types of household bills, paid by Direct Debit.

On average, Reward customers earn £83 a year in cashback (not including the monthly fee) based on monthly bills of £345.

You get a flat rate of 2% cashback on Council Tax, water, gas, electricity, mobile, landline TV package and broadband, as long as you pay by Direct Debit.

You’ll also earn 1% cashback when you spend with partner retailers such as Caffe Nero.  

The account costs £2 a month.

As long as you pay out more than £100 in eligible Direct Debits a month, you'll end up making money from the Reward account.

The cashback is unlimited but new customers signing up will need to be able to deposit at least £1,500 a month to benefit from this cashback account.

If you switch to RBS by 29 November 2019 or NatWest by 6 December 2019, you can get a £150 sweetener.  

Co-operative Bank

Co-operative Bank customers can opt into the Everyday Rewards scheme with a current account or Everyday Extra current account.

Everyday Rewards offers the chance to earn up to £5.50 a month for everyday banking.

But the cashback offer comes with a list of caveats.

The first £4 is earned so long as you pay in at least £800 each month, stay in credit, opt for paperless statements, log into online banking at least once a month and have a minimum of four Direct Debits.  

Account holders can also earn an extra 5p every time they use their debit card, up to £1.50 a month. This brings the total up to £5.50 a month or £66 a year.

You can opt to keep the cashback or send it to one of five charities: Amnesty International, Hospice UK, Oxfam, Refuge or The Woodland Trust. 

On the plus side, there's no monthly fee (unless you opt for the Everyday Extra account), so you'll receive or donate the full amount you earn.

Barclays

The Barclays Bank Account with Blue Rewards is also worth considering.

Providing you are a current account customer aged 18 or over, deposit £800 a month, have two Direct Debits, and sign up to online or mobile banking, you'll be paid £7 a month.

There’s a £4 a month fee, so you'll actually only pocket £3 a month.

If you have a Barclays mortgage, you'll get an extra £5 a month and with home or contents insurance, you can get up to an extra £3.

Switch to Barclays and turn on Blue Rewards before 30 November 2019 and the bank will double the rewards for a year.

Getting other financial products from your main bank can often be a false economy, so you need to be sure that your deal is a good one excluding any cashback benefit.

Compare current accounts

This article is regularly updated

More on earning a little bit extra:

How to sell successfully on eBay

How to get free and cheap cinema tickets

Sharing economy: how to make money from your home

 

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