Cashback from a current account

How can I earn cashback on my current account?

Imagine earning money in return for spending. Some current accounts do just that – giving you back a proportion of your monthly spending as cashback for you to spend as you like. You can search for a cashback current account with Uswitch.

How do cashback current accounts work?

Cashback accounts typically return a percentage of your spending as cash, for example if you have a current account offering 1% cashback, for every £100 you spend you will earn £1. Others give you reward points which you can exchange for cash.

The amount you can earn depends on how and where you spend. Often you will only be paid cashback on certain purchases, bills, or spending with specific companies. That is why it is important to read the small print to make sure that you get the best deal on cashback current accounts.

Many current accounts offering cashback have a maximum amount they will pay out. So before you do any big spending make sure you find out this limit, as you may not get as much cashback as you would expect from the headline figure.

What do I need to watch out for with cashback current accounts?

You need to balance the amount of cashback you can potentially earn with any costs or fees associated with the account.

For example, you may have to pay a monthly or annual fee for a cashback current account bank account. Also, you need to think about how you might use a cashback account, and whether you will need an overdraft. If you think you might regularly need an overdraft facility, you would probably be better considering a bank account with a fee-free overdraft facility.

Which banks offer cashback current accounts?

There are a number of banks that offer cashback current accounts, and they all have different rules over how you can earn you cashback and how much. We have listed the latest deals below.

Barclays Bank Account

The Barclays Bank Account gives you rewards for banking and offers an app that helps you keep your money under control. There are no fees to open or use your account. 

However, if you want to earn cash rewards you have to join Barclays Blue Rewards. To be eligible for Barclays Blue Rewards, you need to have a current account with Barclays, pay a £4 monthly fee and make sure that at least £800 is paid into the account each month. You can earn cashback when you shop through the Barclays app. 

Santander Everyday Current account

The Santander Everyday Current account has no minimum monthly funding or monthly fee to maintain the account. You can apply for an arranged overdraft facility and you can earn up to 15% cashback with retailer offers when you shop with your Santander cards. Retailers taking part include Just Eat, Morrisons, Sky, Costa and the Co-op.

Santander 123 Lite Current Account 

The Santander 123 Lite Current Account gives you up to 3% cashback on selected household bills, capped at £5 in each cashback tier each month. You can earn up to 15% cashback with retailer offers.

You need to pay at least £500 into your account a month, log onto Online or Mobile Banking at least once every 3 months and have two active Direct Debits. This is a paper-free account, so documents, statements and some letters will be sent to your secure inbox in Online Banking.

Santander All in One Credit Card

For a £3 monthly fee this card offers 0% interest on balance transfers for 26 months from account opening with no balance transfer fee, 0% interest on purchases for 26 months from account opening and 0.5% cashback on all your purchases. You can also earn up to 15% cashback with Retailer Offers. 

What is the best cashback account in the UK?

There is no definitive 'best' current account for cashback. You should carefully consider your financial situation and think about how much you spend and where your money goes.

You could use the cashback calculators banks often provide for their cashback products to see if it's worthwhile for you, especially bearing in mind the account fees.

Whatever you decide, the Switch Guarantee makes it simple to switch banks, by ensuring your Direct Debits and in-going payments are automatically moved over in a seven-day time period.

Are there other rewards on current accounts? 

NatWest Reward bank account gives you rewards that you can redeem as cashback, gift cards or e-codes with selected retail partners. The account includes a mobile banking app and you can apply for an arranged overdraft. The account has a £2 monthly fee and to hold this account, you need to pay in £1,250 to an eligible NatWest account every month. You can earn up to £5 a month back.

If you are an existing NatWest current account customer you can change your existing current account to a packaged account. 

Reward Silver: enables you to earn rewards that you can redeem as cash, gift cards or e-codes with retail partners, insurance cover for European travel, mobile phone insurance and fee-free debit card purchases abroad. The account carries a £10 monthly fee.

Reward Platinum Account: includes all the above perks, plus Worldwide family travel insurance and has a £20 monthly fee.

Reward Black Account: includes Worldwide family travel insurance, access to over 1,000 international airport lounges with Dragon Pass Premier,

24/7 Concierge Service, UK and European car breakdown cover, and £9 a month back in Rewards on two Direct Debits. There is a £31 monthly fee and to upgrade, you need to be an existing NatWest current account customer.

You need to also meet one of the following criteria: have a minimum £100k sole income or £120k joint income paid into your NatWest account, or £500k minimum mortgage borrowing with NatWest, or minimum £100k savings or investments held.

Are there better options than receiving cashback?

Cashback credit cards: Cashback credit cards can be used just like standard credit cards to buy items on credit and pay back the balance at the end of the month. They have an added benefit of allowing you to earn "cash back” on your purchases.

Cashback is essentially money you earn from the purchases you make. Some cards give you cashback on every purchase you make, while others give cashback on purchases within certain categories.

Packaged Current accounts: A packaged current account is an account that will offer you perks such as insurance, breakdown cover, cashback on certain bills, free overdrafts, store discounts or exclusive interest rates paid on your savings. Often you will have to pay a monthly or annual fee for the account (or have to deposit a minimum sum each month). However, if you use all the benefits a packaged account can more than pay for itself.

Reward credit cards: credit cards linked to particular providers like Sainsbury’s Nectar and Tesco Clubcard give you points with purchases. These are known as reward credit cards.

Can you find higher interest rates investing your cash elsewhere?

When it comes to saving your money, there is a lot of choice. There is a wide range of savings accounts available, depending on long you plan to save for, how quickly you will need your money, and what interest rate you are looking for. The best savings account for you depends on what sort of access you need to your money.

You may well find that a savings account offers a better return on your money than a cashback current account.

Read more about savings and investments with our ISA savings guide.