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