This comparison simply includes all savings accounts.
Compare Cashback Current Accounts
Why we like it: Earn 1.50% AER (variable) interest on balances up to a maximum of £20,000. Up to 3% CASHBACK on various household bills. Monthly fee of £5. Must pay in £500 pm.
Why we like it: 0.50% AER (variable) payable on your entire balance up to £2,000. Linked to instant access savings account currently paying 1.00% AER, paid quarterly. Zero transaction fees wherever you spend worldwide (arranged and un-arranged lending, other providers & other fees and interest may still apply). Apple Pay & Google Pay enabled contactless debit card. Rated ‘outstanding’ by Moneyfacts. Must be 18 or older and a UK resident. No account fee. No minimum funding required to open account or requirement to pay in regularly
Cashback Current Accounts
There are some great cashback reward incentives at the moment and with more and more accounts offering cashback on everything from your purchases to your household bills, there’s a cashback account to suit everyone.
Some of the best cashback accounts include:
Santander is one of the few accounts that offer interest on your balance plus cashback rewards.
However, this account does have a £5 per month fee which is automatically taken from the account each month.
The cashback you can receive on your household bills includes:
- 1% cashback on water and council tax bills and on your Santander monthly mortgage payments (up to a maximum of £1,000)
- 2% cashback on gas bills and electricity bills
- 3% cashback on mobile, home phone, broadband and paid-for TV packages
You will earn interest up to £20,000 on this account which makes it a great option for people with higher balances in their account who also desire a cashback reward system.
Santander 123 Lite
If you’re not looking for the high interest rates but are interested in the cashback deals then the Lite account may suit you more as the £5 account fee of the original 123 account is reduced to £1.
You will receive the same cashback on monthly bills and still have access to the 123 World offers and special deals which Santander offer as standard.
To qualify for the cashback on both of these accounts you must:
- Pay at least £500 into your account each month
- Have at least two active Direct Debits - you'll receive cashback on any qualifying household bills you pay by Direct Debit
Useful to Know
- Household bills don’t include TV licence, maintenance contracts (e.g. boiler repair cover), other insurance contracts, commercial use or commercial mortgages.
NatWest Reward Account
Natwest also offer a cashback reward account. There are no minimum monthly payments for this account making it a great option for those who are unable to meet the high minimum payment requests of some other accounts. There is, however, a charge per month of £3
The rewards you can earn on this account are similar to the Santander 123 account:
- You can automatically earn 3% on seven kinds of household bills, including council tax
- Cheaper option than the Santander account
- As soon as you reach £5 in rewards you can exchange it for £5
This is a great choice for those who pay a lot of household bills out of one account and would like to see some return on that.
Natwest state that:
"There's no limit to the rewards you can earn. On average, currently our customers earn £120 per year in rewards, based on average monthly Direct Debits of £333 (£4,000 per year) and excluding the monthly fee."
TSB Classic Plus Current Account
TSB offer a great deal on its Classic Plus current account. This account has one of the lowest minimum monthly pay-ins at £500 per month so is well-suited to anyone who finds it difficult to meet the minimum payments of some other accounts.
They also offer 5% AER (variable) interest on balances up to £2,000. Interest is paid monthly and to earn it you simply:
- Pay in a minimum of £500 a month
- Register for Internet Banking, paperless statements and paperless correspondence.
While not strictly a cashback account, they’re also currently offering 5% interest on the first £100 of contactless payments you make each month for a year. When added to the interest they pay on your balance, this makes for a very good option.
Are they worth it?
Yes, if you really make the most of what they have to offer. With banks cutting interest rates dramatically in 2016, cashback is a good way to make sure you’re still getting something back.
However, they’re only worth it on purchases you would be making anyway and be wary of monthly fees eating in to your cashback reward.