Do you have money sitting in your current account doing nothing?
If so, it doesn’t have to be that way. Earning cashback or interest with your everyday account are just a couple of ways to make your money work for you.
But is one better than the other? Let’s see how they stack up against each other.
This is a paid content promotion brought to you by iFAST Global Bank.
The iFAST Global Bank Multi-Currency Current Account gives you 2% cashback on spending up to £2,000 every month. You have until 30 June 2025 to take advantage of this rate, which can earn you up to £40 a month in cashback. Subject to applicable terms and conditions.
You’ll also earn 3.50% AER (variable) on GBP in your account, 1.25% AER (variable) on EUR, and 2.80% AER (variable) on USD. Learn more.
If you’re unfamiliar with cashback, it’s a type of rewards programme where you earn a percentage back of what you’ve spent. For example, if you have an account with 2% cashback and you bought something that was £50, you would get £1 back.
It’s a nice perk to have with your everyday account, as you can instantly feel the benefit, and it’s something that you can earn on things you’re spending on already.
To make things simple, here’s a round-up of the benefits:
However, there are some things to be aware of with cashback, especially if you’re comparing it to being able to earn interest on your account:
Having a current account with interest is another way to put your money to work.
It has the big advantage of being low maintenance, as you don’t need to move your money to a separate savings account; instead, you earn interest on what is sitting in your current account. You can also take advantage of compound interest, where you essentially earn interest on your interest.
If you’re on the fence about interest vs cashback, here’s why you may want to go with interest:
And here are a few things to think about:
One option is not better than the other, but they are different.
For example, if you use your debit card regularly, like to see tangible returns and are happy to meet certain spending criteria – then cashback will suit how you already manage your money.
On the other hand, if you save more than you spend, are interested in earning on idle cash and are happy with longer-term growth – earning interest on your current account will be right up your street.
We’ve been pitting cashback and interest against each other, but what if you didn’t have to choose? The beauty is that there are accounts that offer both.
For example, with the iFAST Global Bank Multi-Currency Current Account, you get 2% cashback on spending up to £2,000 every month. Meaning, in real terms, if you max that out, you could earn up to £40 cashback a month.
Plus, you also earn 3.50% AER (variable) on any pounds sterling held in your account. That’s not money you’ve had to put away into a savings account, it’s a competitive interest rate on whatever your balance is.
iFAST Global Bank’s Multi-Currency Current Account is also unique in that, as the name suggests, you can hold multiple currencies in 1 account and earn interest on all your multi-currency balances. So, alongside the 3.50% AER (variable) on GBP, you also earn 1.25% AER (variable) on EUR and 2.80% AER (variable) on USD.
It’s an account where you don’t have to choose between tangible returns and longer-term growth. Instead, you can benefit from both and really maximise what your money can do for you.
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