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.
Earn 2 to 15% from various retailers including Disney+, Lego, LNER and more. Plus a weekly Greggs treat, an annual Railcard every year and access to an exclusive savings account
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.
Earn RevPoints from selected retailers including Amazon, Sports Direct, BT Broadband and accomodation through RevStays. RevPoints are earned through everyday spending, turning card purchases into perks.
£150 cashback for accounts switched using the Current Account Switching Service provided at least £1.5K credited and 2 direct debits active within 60 days of request.
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.
Pros
1% cashback on essentials
1% cashback on selected bills
Linked savings account with 6% AER (variable) in year 1
£150 cashback for accounts switched using the Current Account Switching Service provided at least £1.5K credited and 2 direct debits active within 60 days of request.
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.
Pros
1% cashback on selected household bills and essential spend
The cashback reward: Earn 2 to 10% from various retailers including Disney+, Lego, LNER 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.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Pros
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Cons
Free ATM withdrawals outside the EEA limited to £200,
£1 fee for depositing cash at PayPoints,
Maximum cash deposit of £1,000 every 6 months
No rewards program
Minimum opening balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
0%
Overseas cash withdrawals
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
The cashback reward: Earn 2 to 10% from various retailers including Disney+, Lego, LNER and more.
Other benefits
A weekly Greggs treat
An annual Railcard every year
Access to an exclusive savings account
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, if you are a fan of Greggs and travel frequently by train.
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.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable. Account fee of £7 per month.
Pros
Fee-free withdrawals abroad
Interest paid on account balances up to £100,000
"Virtual cards" available for online purchases
All the in-app banking features of a standard Monzo account
3 free cash deposits per month
Cons
£7 monthly fee applies
Interest charged on overdrafts
As with all Monzo accounts, it’s managed digitally, so there are no branches if you prefer to bank in person
Minimum opening balance
£0
Account fees
£7.00 per month
Overseas card transactions
0%
Overseas cash withdrawals
Europe: UK/EEA - 0% Elsewhere: 0% conversion fee plus a cash fee of 0% on up to £600 per 30 days (3% thereafter)
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
RevPoints rewards: Earn RevPoints at selected retailers as well as on accommodation when you book through Revolut Stays. RevPoints are earned through everyday spending, turning card purchases into perks.
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 RevPoints value: Depends on where you shop
Any requirements: None
Pros
Low overseas fees
Quick sign-up
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
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
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.
Pros
Range of insurance policies included with the account
£200 for accounts switched using the Current Account Switch Service before 10.12.2024, including at least 3 direct debits.
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
Pros
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
Cons
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 fees
£3.00
Overseas card transactions
Europe: 2.99% plus flat fee of £0.50. Elsewhere: 2.99% plus flat fee of £0.50
Overseas cash withdrawals
Europe: 2.99% conversion fee plus a cash fee of £1.50. Elsewhere: 2.99% conversion fee plus a cash fee of £1.50
Cashback Extras - Earn up to 15% cashback from selected retailers when shopping with a Halifax credit or debit card.
The cashback reward: £5 a month
Other benefits
Instead of the monthly cash reward, you can choose one cinema ticket each month or 3 digital magazines per month
Access to exclusive savings offers
Up to 15% cashback at selected retailers when you spend on your card
The potential cashback value: £60 a year, plus retailer offers
Any requirements
Spend at least £500 on your debit card each month or keep £5,000 or more in your account
Pay at least £1,500 into your account each month and stay in credit.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.9% EAR variable. Account fee of £3 per month (Account fee waived if account credit with at least £1500 per month)..
Pros
Choose rewards to suit you
New customers switching get a 6-month 0% overdraft
Earn cashback at certain retailers
Single or joint account options
Easy to open and manage account online
Cons
Need to meet eligibility criteria to qualify for rewards
£3 monthly fee if you don’t pay in £1,500 a month
Overdraft charges are high once interest-free period ends
No interest paid on in-credit balances
Minimum opening balance
£0.01
Minimum operating balance
£0.01
Switch service guarantee
Yes
Account fees
£3.00 per month
Overseas card transactions
Europe: 2.99% plus flat fee of £0.50. Elsewhere: 2.99% plus flat fee of £0.50
Overseas cash withdrawals
Europe: 2.99% conversion fee plus a cash fee of £1.50. Elsewhere: 2.99% conversion fee plus a cash fee of £1.50
On 30 June 2024, Algbra ended their rewards scheme, which means you cannot currently get cashback on your Algbra spending. Here’s what they previously offered.
The cashback reward: 1.5% cashback whenever you paid 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 needed 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 comes 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 and have a daily balance of £5,000 or more.
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
"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?
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.
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.
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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. See full bio
Matthew's expertise
Matthew has written 285 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
Cardless cash provides a convenient way to use an ATM without their card. If you often go out without your wallet or want to make it easier for family members to take out money, this is a feature that deserves a second look.
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