What are Cashback Accounts?
Bank accounts with a cashback scheme are designed to reward their customers with a % back on what they spend with various retailers and services. Rewards have traditionally been the domain of the the likes of Quidco – who are well worth checking out for their breadth or offers and cashback deals. However, you still need to actively login to Quidco to do it.
What we really like about these cashback schemes with bank accounts is that you benefit without having to do anything other than spend money in the usual way. It also seems a little more by way of an incentive than other gimmicky offers and cashback on your debit card is far better than being encouraged into a credit card that you may be tempted to over-spend on. Most accounts require you to set it up with them online or by phone but these schemes will reward you with a % back of your shop at any of their partner retailers and also give you money back. You will usually be credited with the cashback amount at the beginning of the following week.
The best Cashback Bank Accounts.
Santander at the time of writing this still seem to offer a pretty comprehensive package. Relitavely speaking, you get a decent interest rate which is tiered depending on how much you deposit with them. This isn’t a free account, you pay £2 a month in fees but with 1% cashback on water, council tax bills and Santander Mortgage payments, 2% on gas and electricity bills and 3% on mobile phone, home phone and broadband, this can be recovered easily. You will have to commit £500 to this account a month and the maximum mortgage payment that qualifies is £1000.
Lloyds cashback scheme called ‘Everyday offers’ lets its customers earn back between 5% and 15% when they shop at retailers – which include the likes of Morrisons, Ocado, Homebase and Argos.
If you are considering a new bank account, we recommend you check out what Martin Lewis’ Money Saving Expert has to say on them. They update the latest offers regularly and will point out any of the pitfalls.
Stick or Twist
The new rules for switch-overs are now in force. There doesn’t seem to be much to suggest that people are switching in the numbers suggested. Changing bank account can be a nightmare but if you have a shared house account or regularly use your debit card to pay for things, its well worth looking at the options to change.
It’s also worth considering what your needs are. If you are looking to put some savings aside on a regular basis and want to keep it separate to your current account (a good way to avoid it being raided), them consider First Direct – a linked Savings Account will give you 6% interest through it’s First Account offer.
If you’re looking for a Savings Account for you or your children, then check out our tables of the Top Savings Accounts here >