Fancy earning a bit of extra cash every time you spend money or pay your bills? A current account with cashback could be the answer — and you might be able to take advantage of a switching deal too.
Here’s more about the pros and cons of cashback accounts. Plus, we’re here to help you compare accounts so you can choose the right one for you.
1% cashback (up to £15 a month) on selected household bills when you pay by direct debit and 1% cashback (up to £15 a month) at supermarkets and on travel costs when you use your debit card.
1% cashback (up to £10 a month) on selected household bills and 1% cashback (up to £10 a month) at supermarkets and on travel costs when you use your debit card.
Cashback from selected retailers on purchases made with your debit card including LNER, Virgin Voyages, Sunglass Hut and more. This can be traded up for eGift cards.
Various cashback offers from selected retailers in the rewards section of the app including Amazon, JD Sports, BT Broadband and more plus cashback on hotel accommodation.
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
The cashback reward: Earn cashback at selected retailers when you spend on your card and earn 3% cashback when you book accommodation through Revolut Stays.
Other benefits
Fee-free ATM withdrawals up to £200 a month
Fee-free currency exchange on weekdays up to £1,000 a month
The potential cashback value: Depends on where you shop
Any requirements: None
Low overseas fees
Quick application
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked 'Junior' account available for one child
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Earn cashback every month on selected household bills and essential spend.
The cashback reward: 1% cashback on selected household bills when you pay by direct debit and 1% cashback at supermarkets and on travel costs when you use your debit card
Other benefits
Exclusive savings rates
Get cashback, vouchers, prize draws and personalised offers through Santander Boosts
Fee-free debit card spending abroad
Fee-free cash withdrawals abroad
The potential cashback value: Up to £20 a month (up to £10 a month cashback on household bills and up to £10 a month on essential spend)
Any requirements: You must pay at least £500 into your account each month and have 2 active direct debits on the account.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 39.94% EAR variable
. Account fee of £3 per month.
Earn 1% cashback on selected household bills and essential spend
Earn cashback every month on selected household bills and essential spend plus interest on your balance.
The cashback reward: 1% cashback on selected household bills when you pay by direct debit and 1% cashback at supermarkets and on travel costs when you use your debit card
Other benefits
Interest on current account balance
Get cashback, vouchers, prize draws and personalised offers through Santander Boosts
Fee-free debit card spending abroad
Fee-free cash withdrawals abroad
The potential cashback value: Up to £30 a month (up to £15 a month cashback on household bills and up to £15 a month on essential spend)
Any requirements: You must pay at least £1,500 into your account each month and have 2 active direct debits on the account.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 39.94% EAR variable
. Account fee of £5 per month.
1% cashback on selected household bills and essential spend
Monthly interest (3.51% AER)
Fee free spending abroad
Arranged overdraft
Santander Boost rewards programme with prize draws, vouchers, etc.
Covers account holder, partner and up to 4 dependent children aged under 18.
The cashback reward: Earn cashback when you make purchases with your card at selected retailers including LNER, Virgin Voyages, Sunglass Hut and more. This can be traded up for eGift cards
Other benefits
Fee-free debit card spending abroad
Fee-free cash withdrawals abroad
Worldwide family multi-trip travel insurance
Worldwide family mobile and gadget insurance
UK breakdown cover
The potential cashback value: Depends on where you shop
Any requirements: Download the app to start earning cashback
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 19.9% EAR variable
. Account fee of £12.5 per month.
Range of insurance policies included with the account
Monzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create.
The cashback reward: Earn 2 to 10% from various retailers including eBay, ASDA, H&M and more.
Other benefits
Fee-free debit card spending abroad
Fee-free cash withdrawals in the EEA (free up to £200 a month outside the EEA)
Access to competitive savings account
Earn £5 cashback when you refer a friend to Monzo
The potential cashback value: Depends on where you shop
Any requirements: If you have the free plan, fee-free cash withdrawals require you to pay in at least £500 a month and have a direct debit on the account. Alternatively, you’ll qualify if you’ve received a Department for Work and Pensions or Department for Communities payment in the account or a student loan payment.
Earn 4 Rewards per month by making at a minimum of 2 direct debit payments of at least £2 each.
The cashback reward: Up to £5 a month which can be redeemed as cashback, or traded up for eGift cards or donated to charity
Other benefits: Earn from 1% in Rewards when you spend on your debit card at partner retailers
The potential cashback value: £5 a month plus additional retailer cashback
Any requirements: Have at least 2 direct debits on the account to earn £4 a month, plus log into the mobile app to earn £1 a month.
Representative Example: Effective Annual Rate: 39.49% EAR (variable). Representative APR: 39.49% APR (variable). Assumed credit limit: £1,200 Subject to status. How does this overdraft compare? Representative APRs help you compare the cost of different credit products.
Easy to earn rewards
Rewards can be exchanged for cashback, gift cards, e-codes or charity donations
Earn £4 back in Rewards per month by making at a minimum of 2 direct debit payments of at least £2 each.
The cashback reward: Up to £5 a month which can be redeemed as cashback, or traded up for eGift cards or donated to charity
Other benefits: Earn from 1% in Rewards when you spend on your debit card at partner retailers
The potential cashback value: £5 a month plus additional retailer cashback
Any requirements: Have at least 2 direct debits on the account to earn £4 a month, plus log into the mobile app to earn £1 a month.
Representative Example: Effective Annual Rate: 39.49% EAR (variable). Representative APR: 39.49% APR (variable). Assumed credit limit: £1,200 Subject to status. How does this overdraft compare? Representative APRs help you compare the cost of different credit products.
Easy to earn rewards
Rewards can be exchanged for cashback, gift cards, e-codes or charity donations
Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit or debit card.
The cashback reward: Up to 15% on debit and credit card purchases or when you pay by direct debit at selected retailers.
Other benefits
Choose one lifestyle benefit each year - 12 months of Disney+, 6 cinema tickets, an annual digital Coffee Club and Gourmet Society membership or an annual magazine subscription
Interest on current account balance
Exclusive access to savings accounts
The potential cashback value: Depends on where you shop
Any requirements: Pay out 2 different direct debits each month to earn interest
Interest paid on balances up to £5,000
Selected rewards and cashback offers
Preferential exchange rates
Exclusive banking offers available
Choose 1 "lifestyle benefit" each year, such as a TV, coffee or magazine subscription
You’ll need to pay in at least £2,000 each month or pay £3 a month
You must pay out 2 direct debits each month to qualify for interest
Highest interest rate only paid on balances between £4,000 and £5,000
Overdraft rates are 27.5% EAR (£50 buffer)
Minimum opening balance
£1
Minimum operating balance
£1
Switch service guarantee
Yes
Account fee
£3 per month (Account fee waived if account credit with at least £2000 per month).
Overseas card transactions
2.99%
Overseas cash withdrawals
2.99%
The Co-operative Bank - Everyday Extra - with Everyday Rewards
Free travel accident insurance – covers account holder and family including dependent children up to 22 years old.
The cashback reward: Up to £2.20 each month
Other benefits: Access to mobile phone insurance, travel insurance and UK and European breakdown cover.
The potential cashback value: £2.20 a month, or £125 per referred friend
Any requirements
To get the first £1 reward, pay at least £800 into your account, stay in credit or within your arranged overdraft limit, log in to online banking or the app at least once a month, opt in for paperless statements and pay out at least 4 direct debits.
You’ll also earn 2p every time you use your debit card for purchases, to earn up to £1.20 a month.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 35.9% EAR variable
. Account fee of £15 per month.
Includes travel insurance, mobile phone insurance and breakdown cover
Option to opt into Everyday Rewards scheme
FSCS protection
Easy to apply for
Overdraft available
Ethical bank
Monthly fee
No interest paid on credit balances
You'll need to meet certain eligibility criteria to apply
You'll need to meet certain criteria to earn rewards
Interest charged on overdrafts (capped at £60 per charging period)
1% cashback on all physical card spend and 2% on all Google Pay/Apple Pay spending with a maximum of £200 with code: FINDER03. T&Cs apply.
The cashback reward: Earn up to 20% cashback when you buy gift cards at selected retailers.
Other benefits
Fee-free card spending abroad
Fee-free cash withdrawals abroad
Create jars for expenses
The potential cashback value: Depends where you shop
Any requirements: Hyperjar is app-based and you’ll need to buy gift cards to get cashback
No overseas fees
Earn cashback on spending
Separate “Jars” for budgeting
Kids' prepaid card option
Easy to split bills with friends and family
No ATM withdrawals in the UK or abroad
Cannot deposit cash or cheques
No FSCS protection
Minimum opening balance
£0
Account fee
£0
Overseas card transactions
0%
Algbra
The cashback reward: 1.5% cashback whenever you pay using Apple Pay or Google Pay
Other benefits
Fee-free debit card spending abroad
Fee-free cash withdrawals abroad
Use the carbon calculator to help you measure, monitor and offset the carbon footprint of your transactions
The potential cashback value: Earn a maximum of £22.50 a month
Any requirements: You’ll need to set up mobile payments to qualify
What is a current account with rewards or cashback?
Some banks offer current accounts that will credit a cash reward back into your account when you make certain purchases using your debit card. These rewards tend to be based on a percentage of your spending.
A lot of these accounts will only pay cashback with certain retailers or on a certain category of spending, such as groceries or travel. Some might give you cashback on bills like council tax or broadband. Most will cap the maximum amount of cashback you can earn per month.
In some cases, you have to “activate” a cashback deal using your bank’s online banking rewards portal before making a purchase. However, some banks’ rewards systems are sophisticated enough to automatically credit cashback whenever you make an eligible purchase.
A lot of current accounts offer cashback instead of paying interest on in-credit balances, although some do both.
How to open a current account with cashback and rewards
Opening a current account with cashback is no different to opening any other type of current account. As with most bank accounts, you can apply to open a current account online, by phone or in-branch.
Before you sign up, make sure you fully understand how the cashback offer works and whether you need to activate it to claim the rewards.
The majority of banks are signed up to the Current Account Switch Guarantee, which guarantees a seamless switch from your existing current account to your new account within seven working days. From time to time the banks offer switching bonuses, which you can get on top of cashback. Visit our switching deals guide to find a list of current offers.
How to choose the best current accounts with cashback and rewards
1. Check if you’re eligible. It’s important to bear in mind that pretty much every cashback or reward scheme offered to current account customers come with conditions you have to meet, sometimes on a monthly basis.
These typically include a requirement to deposit a minimum amount into the account each month. This shouldn’t be a problem if you have a regular monthly income or salary which you can get paid into that account.
2. Do you spend enough? This may sound like an odd question, but many cashback accounts also require you to spend a certain amount of money each month. For example, you’ll only get the £5 monthly cashback reward with Halifax’s Reward Current Account if you spend at least £500 per month on your debit card.
3. Look out for fees. Annoyingly, a large number of reward or cashback current accounts actually charge a monthly account maintenance fee which can eat into your cashback. So if you’re attracted by a bank’s promise to give you, say, £5 a month in cashback, make sure you factor in any monthly fees. If the monthly fee is £3, then all you really stand to gain is an extra £2 a month.
But some cashback accounts that charge a monthly fee will waive it if you pay in a certain amount each month.
Above all, make sure that fees don’t result in you actually losing money from a cashback account!
4. Look for convenience. If you already pay some of your regular bills from your bank account with a direct debit, then getting a cashback account that needs you to do that in order to get a regular reward could be an attractive prospect.
Case study: Matteo chose Chase because of its cashback
Matteo Pennarts
Works in Finder’s PR team
I chose this account because of its 1% cash back and have earned around £300 since getting the card. It's a great account and their customer service is amazing. Called 3 times for small issues, including an online shopping scam and was reimbursed and helped within 15 minutes. No phone waiting time, straight to operator. Very friendly staff.
If there's one thing you'd tell a friend who's thinking of getting this, what would it be? Do it!
How to compare current accounts with cashback
The best way to compare these current accounts is to try and calculate exactly how much you’re likely to earn. This isn’t always easy, because what you’ll earn will be credited as a percentage of your overall spending.
Let’s say one account offers 0.5% cashback on all spending up to £100 per month, while another pays 2% cashback on all grocery shopping up to £250 per month. In this case, the amount of cashback you’ll earn is based on what spending you’re going to do in the future.
Cashback is unlikely to be the only factor you’ll want to consider either. Make sure you also look at features such as interest paid on in-credit balances, overdraft options, customer service and branch access as well.
Perhaps, after all this, you’ll decide that the other factors are more important than the potential cashback that you could earn anyway. For this reason, make sure you compare all features of a current account to figure out which is best for your needs.
What’s the difference between a cashback and reward account?
Many people use these terms interchangeably. Some accounts are purely cashback-based, meaning you get money in return for meeting the account’s requirements. A reward account usually gets you some extras like cinema tickets or discounted movie streaming services.
What kinds of items can you get cashback on?
Some cashback accounts don’t offer a fixed cash amount, but rather give you cashback as a percentage of your spending on some household bills or with selected retailers. Depending on the account, you can get a percentage cashback on your household bills, a few pence per debit card transaction, and even a percentage of your spending with selected retailers.
Other types of current accounts
While the best cashback current account can put a bit of extra money in your pocket, you might find that other types of bank account can offer you better value.
If you have a less steady income stream, a cashback account that requires you to get a certain fixed amount deposited each month might not be that beneficial.
Elsewhere, packaged current accounts can offer you benefits ranging from mobile phone and travel insurance, streaming subscriptions and discounted retail offers, in exchange for a monthly fee.
Pros and cons of current accounts with cashback
Earn cashback on your purchases
Unlike interest, cashback is tax-free
Some banks allow you to earn cashback automatically
They can come with monthly fees
Some accounts offer cashback instead of interest on in-credit deals
Some accounts require you to “activate” cashback deals before you can earn money
Comparing cashback offers can be confusing, but try to be realistic and work out what you’re likely to earn each month after the fees have been deducted.”
Bottom line
In order to unlock the best value from a cashback current account you need to be confident that you can regularly meet its requirements. That means keeping a close eye on your day-to-day personal finances, including how much your regular bills are costing you, the methods you use to pay them, and where you usually spend your money.
Used properly, these types of accounts can offer you a handy bonus each year to help you meet your financial goals. But always weigh up the costs and eligibility criteria of cashback current accounts to work out if they are truly worth it for you.
Frequently asked questions
This varies, but if your current account offers cashback on certain types of spending, you will usually receive the payment into your account within one or two months of making the eligible purchases.
Your account’s terms and conditions will usually explain whether you’re eligible to receive cashback. For those who don’t want to wade through lines of small print, your banking app or local branch will usually be a good source of information on this. Certain accounts that make time-limited cashback offers available with certain retailers will list these in your online banking menu or banking app once you’ve logged in.
You’d apply the same way you’d apply for a regular current account. You’ll have to provide your personal details and have your identity verified; you can usually do it online but you may need to bring your ID to a bank branch in some cases. Depending on the eligibility criteria, you may also be asked about your employment status, annual salary and how much you’re planning to pay into the account.
Yes. All the main banks offering rewards accounts adhere to CASS, so switching will be a relatively painless experience.
They normally do, although you may have to apply for it and pass a credit check first. You can check your credit score here.
Yes, you can. There are no limits to the number of current accounts you can hold. However, you may have to open them with different financial institutions. Many banks won’t give you two accounts with the same benefits and, for example, you can’t get a switching incentive if you already hold another account with the same bank. Finally, since rewards accounts often require you to pay £1,000 or more into the account every month, you may be unable to meet the criteria for more than one account at a time.
Banking scores
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★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife.
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