Instant Access Savings Pots 4.6% AER (variable). No minimum deposit & maximum deposit £100k. You must have a Monzo account to get an Instant Access Savings Pots. T&Cs apply.
Overdraft limit up to £2000. You must be over 18 to get an arranged overdraft. Credit subject to status. Terms and conditions apply. Monzo Bank Limited Address: Broadwalk House, 5 Appold St, London EC2A 2AG.
Access to offers from a range of brands. Offers may change without notice, T&Cs vary by vendor.

Eligibility

Maximum Age	Unlimited
Maximum Investment	Unlimited
Minimum Contract Term	3 months
Minimum Age	18 years
Permanent UK Resident

Exclusive metal card + phone insurance (exclusions apply)

Monzo Premium

Overdraft interest rate

Representative example:

Additional information

Instant Access Savings Pots 4.6% AER (variable). No minimum deposit & maximum deposit £100k. You must have a Monzo account to get an Instant Access Savings Pots. T&Cs apply.
Overdraft limit up to £2000. You must be over 18 to get an arranged overdraft. Credit subject to status. Terms and conditions apply. Monzo Bank Limited Address: Broadwalk House, 5 Appold St, London EC2A 2AG.
Access to offers from a range of brands. Offers may change without notice, T&Cs vary by vendor.

Eligibility

Maximum Age	69 years
Maximum Investment	Unlimited
Minimum Contract Term	6 months
Minimum Age	18 years
Permanent UK Resident

Uswitch Limited is a credit broker, not a lender, for consumer credit.

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

How do cashback current accounts work?

A cashback current account is a bank account that can make your money work harder for you each month. It does this by rewarding the account owner with cashback whenever they spend through the bank account - this could be by paying regular bills or using the debit card in high street retailers.

The amount of cashback depends on the bank, but it is usually a percentage of your total purchase. For example, if the current account offers 2% cashback on every £100 spend you’ll earn £2.

This is an easy way to receive a small amount of money each month just by running your current account as normal.

UK debit card transactions in October, 2022^[1]

2.2bn

Is my money safe?

The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a registered bank or building society (or first £170,000 for a joint account) will be safe even if the business goes bust.

5 things you need to know about cashback current accounts

If you are someone who struggles with saving money each month, a cashback current account rewards you for spending and gives you a little extra every month. It might be small, but every little helps.

Cashback current accounts don’t automatically offer you cashback on any purchase, so it’s important to check the terms and conditions to see whether your spending habits would be rewarded.

Cashback current accounts can have different reward rates for different types of bills, so it’s always worth checking to see how you can get the most cashback. For example, gas and electricity bills might give a 2% reward but then council tax and water bills offer a 1% reward.

As with any bank account, there will be specific terms and conditions that you’ll need to follow if you want to maximise the cashback potential. Some accounts state that you need to pay in a minimum amount each month and others might ask for at least two direct debits to unlock the rewards. There could also be a monthly fee for this type of account.

Once you are clear on the terms and conditions of the account, try and calculate how much you might spend over the course of a month and then a year. This will help you to work out how much cashback you could earn and whether this is the right account for you.

Pros and Cons

Pros

You earn money on your normal spending

The money is normally automatically paid into your account each month

Cash rewards can be available for switching

Cons

Cashback current accounts can charge a monthly fee, so if you don’t earn enough cashback it might not be worth the extra cost

There is normally a cap on how much cashback you will recieve

You may have to pay in a minimum amount of money each month to unlock benefits

Cashback earned on different annual spends

Money earned when the cashback rate is 1% and monthly fee is £5

Figures include a deducted monthly fee of £5 and assumed no limit on how much cashback can be recieved each year.

Source: Uswitch. Updated: January 19, 2023

Are there other rewards available on current accounts?

Current accounts offer different types of perks depending on the bank, and this ranges from cashback to discounts and other extras.

Cashback is great if you use your account for household spending, but bear in mind that other bank accounts also offer exclusive deals and offers for account holders which could prove more valuable. There is also the opportunity for other extras, for example some bank accounts offer free discount railcards.

“A cashback current account enables you to earn extra cash each month, but always check whether your spending aligns with the cashback incentives.”

Lucinda O'Brien

Personal Finance Editor

The alternatives to a cashback current account

Standard current accounts

A standard current account comes without any frills and normally allows you to access online banking or an app to help you manage your money. You’ll also get a debit card to use for your spending and normally the option to have a cheque book.

High-interest bank accounts

A high interest current account acts like a standard account, but with a higher rate of interest. This often depends on your balance at the end of the month or the amount you can pay in, so it will suit people who have a large balance in their current account.

Packaged accounts

Packaged current accounts perform the same basic functions as standard current accounts but come with a monthly fee in exchange for exclusive benefits. This could be cashback, high interest on positive balances or benefits like mobile phone insurance or breakdown cover.

Current account guides

Find out more about how current accounts work with our in-depth guides

Find more guides here

FAQs

How can I find the bank that gives the best cashback?

It’s important to do your research if you are interested in a cashback current account. There are a lot of options available so browse the different providers and choose the right cashback to suit your current spending. You can also take a look at our table above to see some of the best deals on the market.

How much cashback could I earn?

The amount of cashback you could earn depends on how much you are spending each month. If you are a big spender on the items or bills linked with the cashback, then you will earn more money. However, many current accounts offering cashback will have a maximum amount that they will payout, so bear this in mind too.

Is it possible to choose the rewards?

If rewards are attached to your current account, some providers will allow you to choose a reward from a selection of options. However, it will depend on the terms and conditions for each account.

When will I get the cashback in my account?

Cashback is normally automatically paid into your account, but when you receive it will depend on the provider. Some providers will pay the cashback into your account each month just before your statement is sent and others will pay the cashback on or before the last working day of the month. Check the current account terms and conditions to find out the specific timeframes.

About the author

Lucinda O'Brien

Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

Didn’t find what you were looking for?

Below you can find a list of our pages about different current accounts:

High interest current accountsPackaged current accountsCashback accountsBusiness bank accounts

Customer Reviews

Rated 4.6 out of 5

by 22,180 people

Very straightforward and easy to use and has saved me alot of money brilliant service

Lyndon Royle

Quick and easy

Paul Massie

It was so easy

Gary Longfellow

References

1. UK finance card spending update for October 2022: There were 2.2 billion debit card transactions in October, 12.4 per cent more than in October 2021.

Your cookie preferences

Select cookie preferences

Compare cashback current accounts

Earn cash rewards on your spending

Find a cashback current account

Cashback current account deals

Monzo Plus