This comparison simply includes all savings accounts.
Reward Current Accounts
Why we like it: Earn 1.00% AER (variable) interest on balances up to a maximum of £20,000. Up to 3% CASHBACK on various household bills. Monthly fee of £5. Cashback capped at £5 for each cashback tier each month. Must pay in £500 pm.
Compare Current Account Rewards
Current accounts that reward you when you spend
There are a lot of current accounts around at the moment that are offering ongoing rewards for making minimum payments in to your account or simply switching to them. Below are a selection of some of the best deals around at the moment.
1) Cashback Rewards
NatWest Reward Account
NatWest offer a cashback reward account. There are no minimum monthly payments making it a great option for those who are unable to meet the high minimum payment requests of some other accounts. There is a £3 charge per month but this can soon be made up by the cashback rewards.
The rewards you can earn on this account are similar to the Santander 123 account in that you can earn cashback on your household bills. As this account is a cheaper option than the Santander account, it’s 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.
The scheme is quite simple, you can automatically earn 3% cashback on seven kinds of household bills, including council tax. As soon as you reach £5 in rewards you can convert it to money and transfer in to your current account or even use it towards your NatWest credit card balance.
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.’
Also providing rewards in the form of cashback on your household bills, this account charges £5 a month which is automatically taken out.
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 also earn interest up to £20,000 on this account.
Santander 123 Lite
If you’re not looking for high interest rates but are interested in the cashback rewards then the Lite account may suit you, 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.
TSB Classic Plus Current Account
TSB are also currently offering a cashback reward by giving 5% interest on the first £100 of contactless payments that you make every month for a year.
Apart from this incentive, TSB offers 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 it is well-suited to anyone who finds it difficult to meet the minimum payments of some other accounts.
They also offer a high rate of interest on balances up to £2,000. Interest is paid monthly and to earn it you simply pay in the minimum per month, register for internet banking, request paperless statements and sign up for paperless correspondence.
2) Cash Rewards
Currently the Co-operative banks and Halifax are both offering monthly cash rewards for switching to them.
The Co-operative’s Everyday Rewards programme allows you to earn up to £5.50 per month for switching and depositing £800 a month in the account with four active Direct Debits The Co-op are also currently offering a joining reward of a free £150.
Alternatively the Halifax Reward current account will pay £5 into your account each month, totalling £60 in a year. To earn this reward you must pay £750 a month and pay two different Direct Debits from the account to trigger the bonus. They're also offering £100 in cash for switching to their account.
First Direct are currently offering £100 cash for switching to them, which is more than the monthly reward totals of both Halifax and Co-operative.
First Direct do not pay any interest on your money held by them, but as a reward they will pay you £100 for joining them.
They will also pay you a £100 if you leave them in the event that you are not satisfied with their customer service. Both are subject to terms. You can also benefit from an interest free overdraft up to £250, which is currently the highest in the market.
If you’re looking for your account to work a bit harder then HSBC’s Advance or Premier accounts could be for you. HSBC are currently offering the following rewards:
- Open and switch to one of these accounts and you'll get £150
- Stay for a year, you'll get a further £50 bonus
- You’ll also get a 0% overdraft for six months when you open the account, though the limit you get is credit score dependent
However, the account has a high minimum monthly pay-in at £1,750 a month so consider whether you'll be able to meet this before opting for it.