We reveal the current accounts offering the most cashback and rewards on your energy bills, transport costs and shopping.
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Chiara CavaglieriSenior researcher & writer
In this article
- Does your bank account give you extra?
- Best bank accounts for cashback and rewards
- Bank accounts paying cashback and rewards reviews
- Should you get a cashback or rewards bank account?
- More on cashback and rewards bank accounts
Does your bank account give you extra?
Many banks and building societies offer cashback on monthly bills to open or retain a current account.
Others will pay a monthly bonus or non-monetary rewards if you meet certain conditions, such as using your debit card a certain number of times.
Here, we explain how to get the most out of cashback current accounts and the crucial T&Cs to look out for.
- Looking for upfront cash for moving bank? See our guide to thebest current account switching offers.
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Best bank accounts for cashback and rewards
We show the current accounts that pay cashback or rewards below, ranked by maximum cashback per month.
Santander 'Edge Up' | 70% | £30 | £5 | £1,500 |
Santander 'Edge' | 70% | £20 | £3 | £500 |
Chase 'Current Account' | 79% | 1% on debit card spending for a year | £0 | £0 |
NatWest 'Reward Account' | 72% | £5 | £2 | £1,250 |
Royal Bank of Scotland 'Reward Account' | 72% | £5 | £2 | £1,250 |
Barclays 'Blue Rewards' | 74% | £5 | £5 | £800 |
Halifax 'Reward Extras' | 74% | £5 or monthly reward benefit eg free Vue ticket | £3 (free if you pay in £1,500/mth) | £1,500 |
Table notes:correct as of April 2024. Customer score:Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand and how likely they are to recommend that brand to a friend. We surveyed 4,550 members of the general public in August 2023. Our full table includes scores and star ratings for all banks.
Bank accounts paying cashback and rewards reviews
Santander Edge Up vs Santander Edge
The Santander Edge account, launched in November 2022, costs £3 per month and offers up to £20 in cashback per month:
- 1% cashback on essential grocery shopping and transport spending, capped at £10 per month.
- 1% cashback on household bills paid via direct debit covering council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages, capped at £10 per month.
Edge customers can apply for an exclusive linked easy-access savings account paying 7% AER on balances up to £4,000 falling to 4.5% after 12 months (at the time of writing), fee-free international and UK CHAPs transfers and free withdrawals at Santander ATMs overseas.
The Santander Edge Up account, launched in June 2023, costs £5 a month and pays up to 1% cashback on selected household bills, capped at £30 each month (£15 per cashback tier):
- 1% cashback on mobile and home phone bills, broadband and paid-for TV packages council tax, gas and electricity bills and water bills, capped at £15 per month.
- 1% cashbackon supermarket spending and travel spending , capped at £15 per month.
The Edge Up account pays 3.5% interest on credit balances up to £25,000 (best high-interest bank accounts).
For the Edge Up account, you'll need to pay in £1,500 every month and have at least two active direct debits. For the Edge account, you also need to have at least two active direct debits, but you'll only need to pay in £500 every month.
Chase
The Chase current account has no monthly fee and offers 1% cashback on debit card purchases for the first year.
For accounts opened after 9 May 2023, cashback is capped at £15 per month. Exclusions apply, though. For example, you won't earn cashback on cryptocurrencies, debt payments, estate agent fees or gambling transactions.
You earn 1% AER variable on your current account balance for the first 12 months of holding your account and you can open a linked savings account paying 4.1% AER on balances up to £500,000, although we advise you to keep balances within the £85,000 compensation limit.
Ongoing perks include no debit card fees on transactions or ATM withdrawals abroad and 5% on 'round-up' savings.
If you opt into this, Chase automatically rounds up your spending to the nearest £1 and saves the difference. You can't make additional payments into the savings pot and after a year the balance will be automatically transferred to your Chase current account so you won't earn 5% on a large balance.
You must be 18 years old-plus and have a smartphone, as accounts are operated via a mobile banking app and there are no Chase bank branches.
NatWest and RBS Reward
Previously, the NatWest and RBS Reward accounts paid 2% cashback on household bills paid by direct debit, but this perk was scrapped in February 2020.
Now, you can earn £4 for paying out two or more direct debits (valued at £2 minimum), plus £1 for logging into the mobile banking app each month. Both banks offer 1% cashback on spending at certain retailers as well.
You must pay £1,250 into the NatWest or RBS Reward current account each month to qualify for the perks.
Your Rewards become available to spend once you've earned the equivalent of £5 or more.
At this point, you can choose to either bank it so that the money is transferred to your current account, trade it for gift cards and shopping codes to use at selected retailers or donate it to a participating charity.
Barclays Blue Rewards
Barclays Blue Rewards has become considerably less generous.
The monthly fee is now £5 (it was £4) and you only earn £5 cashback for maintaining two active monthly direct debits (it was £7). You must pay at least £800 into your Barclays account every month to be eligible for Blue Rewards.
The only way to earn more cashback, is to hold other products with Barclays:
- £3 a month for a Barclays mortgage (was £5)
- £5 a month for life insurance with critical illness cover (£1.50 for standard life insurance)
- £1 a month for a personal loan.
As a Blue Rewards customer, you can also open a Barclays Rewards Saver, offering a rate of 3.56% AER if you make no withdrawals and 1.16% in the months where you make withdrawals.
Blue Rewards can be added to all Barclays current accounts except Basic, Young Person's, BarclayPlus, foreign currency accounts, non-personal Wealth and Business.
- Go further:the Money Helper bank account fees and charges tool canhelp you compare current accounts offered by most banks based on what they charge for different services and facilities.
Should you get a cashback or rewards bank account?
Many providers ask you pay in a minimum amount each month or maintain a certain number of direct debits to be eligible for current account rewards.
In some cases, you may need to hold other products with that provider, such as a mortgage, personal loan or insurance to benefit fully.
Compare rates to the rest of the market as you might be better off holding these products with other providers, even with the extra cashback.
Watch out for fees being increased, or benefits being chopped and changed. If they are, take the time to reassess whether the account is still working for you and consider switching if the benefits no longer stack up.
More on cashback and rewards bank accounts
Some rewards are considered taxable by HM Revenue & Customs (HMRC) and some aren't. It all comes down to how HMRC categorises rewards for tax purposes. Broadly, there are three possibilities:
- Annual payments: taxable and paid with basic-rate tax deducted at source
- Miscellaneous income: taxable but paid without tax deducted
- Neither annual payments nor miscellaneous income: not taxable and paid without tax deducted
HMRC told us it would only expect current-account rewards to be annual payments if they continue for more than a year and the customer doesn't pay a fee for holding the account.
Cashback on household bills, offered by the likes of Santander and NatWest, are essentially a discount on goods or services, not income – so there is no tax to pay.
For annual payments, you don't owe any extra tax if you are a basic-rate taxpayer. If you pay tax at higher or additional rates you should pay the additional amount over and above the tax deducted at source if you receive rewards with basic-rate tax deducted.
If you are a non-taxpayer, you can reclaim any tax deducted by using the R40 form or on your self-assessment tax return if you complete returns.
Both Halifax and The Co-operative Bank offer rewards that fall into the 'annual payments' category, which means they deduct basic-rate tax of 20% before paying rewards.
The gross monthly reward for the Halifax Reward account is £6.25, but you receive a net reward of £5. The gross monthly reward for the Co-operative Bank Everyday Rewards account is £1.25, but you receive a net reward of £1.
Unlike interest-paying accounts, there's little to be gained by opening multiple cashback current accounts, as banks tend to restrict benefits.
For example, the Barclays Blue Rewards scheme pays cashback for any month you maintain two direct debits, plus varying levels of cashback for holding extra Barclays products, but customers can only hold one Rewards Wallet each.
Similarly, you can only nominate one account to receive Co-operative Bank Everyday Rewards.
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