How does being paid by your bank sound? Open the right account and receive money back every time you pay certain bills or just for having your account! Let’s see the best accounts on offer.
The best cashback current accounts at a glance
Monthly fee | Fee waived? | Max. monthly cashback | Other freebies | Savings account | |
Santander Edge | £3 | ❌ | £20 | N/A | 7% (4,000 for 12 months) |
NatWest Reward account | £2 | ❌ | £5 | Exchange rewards for boosted gift cards | N/A |
Barclays Blue Rewards | £5 | ✅ | £14 | N/A | 5% (£5,000) |
Halifax Reward Account | £3 | ✅ | £5 | Free cinema ticket or digital magazine instead of £5. | 4.2% (maximum of 3 withdrawals in 12 months) |
Club Lloyds | £3 | ✅ | N/A | Free annual lifestyle benefit worth up to £80 | 6.25% (£400 per month) |
Cashback bank accounts
Are you looking for ways to make some extra money on the side without too much effort? Then, one of my favourite money makers is cashback from my bank.
If you’re new to this site, you won’t know that I’m keen on bank switching. For 10-minutes of work, I can earn up to £200 by swapping current accounts. But banks know that this doesn’t encourage loyalty.
So, instead, many are now offering cashback current accounts. In exchange for using your bank regularly, you’ll earn money back.
Why these are different to other paid accounts
As I’m sure you know, there are plenty of current accounts out there that provide a range of benefits in exchange for a hefty monthly fee. The current accounts below, although they come with a monthly charge, this cost is often outweighed by the money you earn back. In some cases, you might not have to pay a fee at all.
Santander Edge
From Edge, you will earn 1% (capped at £10 per month) on your Direct Debits for:
- Council tax bills
- Mobile and home phone bills
- Broadband and paid-for TV packages
- Gas and electricity bills
- Water bills
Plus, you’ll earn a further 1% (capped at £10 per month) when you spend using your debit card for:
- Supermarkets
- Travel (including fuel, train and bus tickets and electric vehicle charging)
The account comes with a monthly fee of £3 and you must pay at least £500 into your account each month and have two active Direct Debits.
Santander Edge also comes with a savings account that offers an exclusive rate.
Take a look at my full review of the Santander Edge account.
Also worth reading
NatWest MyRewards Account
NatWest will pay you £4 if you have two direct debits and £1 for logging into your banking app every calendar month.
You can also earn an extra 1% when you shop with one of NatWest’s partners. However, there are very few partners and they include P&O and Europcar. How often would you use them?
The account comes with a fee of £2, which means most of us will earn £3 per month or £36 per year. But that’s if you choose to take the cash option.
NatWest will pay you in gift cards if you prefer, from the likes of B&Q, Currys and Argos. This will give you an extra 5%.
Take a look at my full review of the Natwest Rewards Account.
Barclays Blue Rewards
This account will pay you £5 per month if you have two direct debits set up and pay in £800. However, this is wiped out by the £5 fee.
But you can also earn cashback if you have a mortgage, home insurance or a loan with Barclays, although this is a maximum of £9 per month.
The account probably isn’t worth it if you don’t have any of these services with Barclays. I say probably, although it does come with a savings account that offers a competitive rate… but this i capped ay £5,000.
Take a look at my full review of the Barclays Blue Rewards Account.
Also worth reading
Halifax Reward Current Account
The Halifax reward account allows you to choose one of the following rewards each month:
- 3 x Digital Magazines – Choose from popular titles such as Cosmopolitan and Men’s Health
- 1 x Cinema Ticket – See a film on us at any UK Vue Cinema (each ticket valid for 12 months)
- £5 in your account – Paid direct into your account
The fee is £3 per month. But if you pay £1,500 into the account each month, the fee is waived. You will also need to keep a minimum balance of £5,000 in your account or spend £500 on your debit card.
You will also be given access to an exclusive savings account.
There is an Ultimate Reward Current account, which costs £17 and you won’t make money from.
Take a look at my full Halifax Reward Current Account review.
Club Lloyds
This account doesn’t pay you cash but does offer other rewards. Each year, you can choose between one of several lifestyle rewards:
- Annual Disney Plus membership
- 6 cinema tickets
- Gourmet Society membership
- Annual magazine subscription
On top of this, Club Lloyds also offers up to 15% cashback at selected retailers and pays 3% interest on a credit balance between £4,000 and £5,000 as long as you have two direct debits set up. You will also have access to exclusive savings accounts.
Club Lloyds does come with a monthly fee of £3, but this can be waived if you can afford to pay in £2,000.
That’s a lot of money to pay into accounts
You may be slightly concerned (especially if you want more than one) of how much you have to transfer into these accounts each month. The money doesn’t have to come from your wages and can be transferred from any of your accounts. On payday, I will often transfer my wages through these accounts and then back again, before any of my bills are due to be paid.
How much do I earn?
You probably won’t be surprised I hold all accounts above except Halifax. That’s because I use a cashback credit card for my daily spending and have other accounts to keep £5,000 in.
With all my accounts (bearing in mind I have a mortgage with Barclays) I’m earning just under £15 per month after fees just by moving some money around. And with my free cinema tickets from Lloyds, that’s over £200 per year!
It might not sound like much, but it’s easy and money and very simple to do.
Which is the best cashback current account?
Santander Edge comes with the best benefits on this list. If you’re a big spender or have large bills, you have the potential to make up to £17 per month.
If I were looking for a cashback bank account to use as a secondary account, I would opt for Lloyds. It has a good range of lifestyle benefits and it doesn’t have to cost a penny.
FAQs
Is it worth paying for a bank account?
That really depends if you can make the most out of the benefits. If you can, then there’s a good chance you can make a small profit each month.
What is a paid bank account?
This is an account you must pay a fee for (usually paid monthly). In return, you’ll receive extra benefits that are not included in a standard account.
Which bank has the best benefits?
This depends on what you’re after. The Club Lloyds account offers a good range of perks, available once per year. Alternatively, the Barclays Blue Rewards account will probably earn you the most cash.