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.

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.

It’s worth flagging that Barclays Blue Rewards has been temporarily pulled from sale, so this is no longer featured in our roundup.

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 has recently launched a new 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.

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

The Santander 123 current account lets you earn up to 3% cashback on specific household bills, but cashback is capped at £5 per tier, meaning a maximum benefit of £15 a month.

There is a £4 monthly fee to consider, however, so the most you can earn on bills is actually £11 a month. 

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;
  • 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 0.3% interest on savings of up to £20,000 held in the account, which might appeal to some.

If, however, 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

The Santander 123 Lite current account offers the same cashback perks 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.

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 also 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.

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 one of NatWest’s partners, 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.

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.

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.

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.

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.

 

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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