The best bank accounts for cashback

Lloyds Bank, Bank of Scotland and Halifax have launched cashback offers on Direct Debits. Find out how much you could earn and how the deal compares.

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, and they have very valid reasons.  

If you prefer to manage your money with a debit card, you can still earn some extra cash from 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 current accounts

Lloyds Bank offers current account customers access to the Everyday Offers cashback scheme.

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

The bank has now also introduced Direct Debit cashback with one-off bonuses like £50 when you take out an EE mobile phone contract.

Read more about it: Lloyds Bank, Halifax and Bank of Scotland launch Direct Debit cashback offers

The offer applies to all current account customers apart from those with a Basic Bank Account.

The Club Lloyds account is one of the best accounts to go for. It offers 2% interest on balances up to £5,000 and the choice of one six cinema tickets, a magazine subscription or an annual Gourmet Society membership each year.

Halifax current accounts

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

The offer applies to the Current Account, Reward Current Account and Ultimate Reward Current Account.

Like Lloyds Bank, Halifax is now offering one-off Direct Debit cashback for signing up to things like mobile phone contracts and newspaper subscriptions. Read more about it: Lloyds Bank, Halifax and Bank of Scotland launch Direct Debit cashback offers

The Reward Current Account is a particularly good deal to go for. It pays £3 a month, providing you credit the account with £750 each month, pay out at least two direct debits per month and manage to stay out of the red.

New customers switching to Halifax can get a £75 bonus.

Santander 123 Lite Current Account

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

You can get 1% cashback on water, Council Tax and Santander mortgage Direct Debits; 2% on gas and electricity bills plus Santander home insurance and 3% on mobile, home phone, broadband and paid-for TV packages.

For a limited period, the account is also offering 5% unlimited cashback when you spend using mobile contactless payments available through Apple Pay, Samsung Pay or Android Pay until 30 September.

There’s no cap on the cashback you can earn. Spending £30 a day during the offer period will earn you a whopping £114.

Most retailers don't apply the usual £30 contactless limit to mobile payments, so it could be possible to earn a whole lot more.

All mobile cashback earned will be automatically credited to your account in one lump sum by the end of November.

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 card at certain retailers through a scheme called Retailer Offers.

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

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

You’ll get 1% on water, Council Tax and Santander mortgage repayments; 2% on gas and electricity bills as well as Santander home insurance premiums; and 3% on mobile, home phone, broadband and paid-TV contracts.

But 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 in-store and online with your debit card at certain retailers through a scheme called 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 (although you'll want to set up all your eligible bills if you want to earn cashback on them) and pay a £5 monthly fee.

TSB Classic Plus

TSB has an offer allowing Classic Plus Account holders to earn up to £110 cashback a year.

You’ll get £5 cashback every month for spending on your debit card at least 20 times and £5 for having two Direct Debits set up.

The offer only applies to accounts opened on or after 1 March 2017 and is available until 30 June 2018.

The Classic Plus Account also pays a rate of 3% interest on balances up to £1,500, which means you could pocket a further £45 a year.

The good thing about this account is that the rate is ongoing and you only need to deposit £500 a month and register for internet banking to qualify for the interest.

NatWest and RBS Reward

NatWest and RBS offer the Reward Account, a current account which pays cashback on your household bills.

You get a flat rate of 2% cashback (or Rewards as the banks call them) on your phone and broadband, Council Tax, gas and electricity, mobile, water and TV bills. 

The account costs £2 a month, so 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.

Co-operative Bank Current Account

Co-operative Bank Current Account customers can opt into the Everyday Rewards scheme which offers the chance to earn up to £5.50 a month for everyday banking.

However, the cashback offer comes with a list of caveats. The first £4 is earned so long as you pay in at least £800 into the account 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 going out each month.  

Account holders can also earn 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 or annual fee so you'll receive or donate the full amount you earn.

New customers switching to the Co-operative Bank Current Account can get a £100 cash bonus plus £25 to donate to a selected charity.

Barclays Bank Account with Blue Rewards

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 set up, and sign up to online banking or the Barclays mobile banking app, you'll be paid £7 a month. However, there's a £3 a month fee, so you'll actually only pocket £4 a month.

If you have a Barclays mortgage you'll get an extra £5 a month, with life insurance you can get an extra £5 a month, there’s also £3 a month for home insurance customers, and £1 a month if you have a Barclays loan. However, 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 away from any cashback benefit.

Barclays customers can also earn cashback with over 150 retailers, including Boots, B&Q and GAP.

Compare current accounts

This article is regularly updated

More on earning a little bit extra:

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How to get free and cheap cinema tickets

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