Best Current Accounts With Cashback

The best cashback accounts with the top advantages.

Updated: May 21, 2024
Matt Crabtree

Written By

Matt Crabtree

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Have you been looking for an account that rewards you when you spend your hard-earned cash? Specific reward accounts, such as cashback accounts, can help you earn even when you buy something. 

A cashback current account has plenty of extra advantages and perks for you as a spender.

If you're keen to take advantage of these incentives and perks, it's financially rewarding to look at every option open to you before you choose one.

I'll examine the essential features and how to use them to ensure you find the perfect account.

ProviderScoreDetails
1. Barclays★★★★★Click Here
2. Nationwide★★★★★Click Here
3. Chase★★★★Click Here
4. Halifax★★★★Click Here
5. Lloyds Bank★★★★Click Here
6. Virgin Money★★★★Click Here

What Are Current Accounts With Cashback?

Best current accounts with cashback, also named cash reward current accounts, are types of accounts for everyday banking that provide users with cash rewards.

Specifically, this bank account rewards you with a small percentage of your spending. 

This account is similar to a reward account, only you will receive cash-back rewards. You can receive these monthly rewards if you use your debit card in retailers or pay your bills via this account.

How Do Best Current Accounts With Cashback Work?

An account with cashback requires you to pay a monthly fee, which may range between £2 and £5. You may, however, find one of the specific bank accounts that does not ask for a monthly fee. In that case, you will not need to pay to receive your cashback reward.

For other accounts like these, you may pay a monthly fee depending on the minimum amount you pay in. For example, if you pay in lower than £500 each month, and your bank expects you to pay more than this, your monthly fee may increase. 

Your bank will determine your cashback amount based on the amount you spend. They track this amount by logging direct debits plus the standing order amount you set up from your account. 

You will also notice that some accounts only offer cashback when you spend at specific retailers. Others will reward you only when you spend at specific partners of your account, and a few will only provide a certain maximum amount of monthly cashback.

A few conditions may apply when you use your account. For instance, you may have to transfer a minimum of two direct debits and ensure your salary is deposited into this account. You may also have to pass a soft credit score check to prove that you meet the account provider's eligibility criteria.

What Are the Features of Best Current Accounts With Cashback?

Online or mobile banking — These accounts will allow you to manage all account features, including your balance and transaction history, with the easy use of online or mobile banking features. This feature also lets you pay your bills and deposit cheques via phone.

Debit cards — Your account issuer will provide you with a debit card. Some accounts will not charge you if you use this debit card overseas.

Easy transfers — Account holders can transfer between their current and cashback accounts. This feature greatly facilitates moving your funds from a linked savings account to another business.

Linked savings account — The linked savings account feature enables you to link your savings account to your cashback current account. The key advantage of this feature is easy account management and the potential to save and earn your cashback all in the same place, which is supported by the fact that 78% of account holders consider cash rebates great savings opportunities.

Current account switch service — Many of these accounts allow you to use a current account switch service if you need to transfer all funds from your old account to this new account. You can access this service via the new bank you want to transition to.

Cashback Account Pros and Cons

Our list of the best accounts that offer cashback is coming up, but just before we take a look, here are the perks and drawbacks you will need to consider before you choose this type of account to manage and spend your money.

Pros

✔️ Some accounts provide Financial Services Compensation Scheme (FSCS) protection — This feature means your funds remain protected even if your bank goes out of business. The protection applies for funds up to £85,000.

✔️ Earn when you spend — While some providers offer cash by switching bank accounts, a cashback account rewards you differently. You earn back a portion of the outgoings in cashback for spending your money each month. This advantage means you have an additional incentive to use your account, which was a factor that convinced 70% of account holders to make a switch.

✔️ Low monthly fee amounts — Your account provider will, in many cases, expect low monthly fees for you to maintain this service. These low fees are another handy incentive that means you can save your money.

✔️ Cashback is not taxable — You may wonder, “Are current account rewards taxable, including cashback?” One of the perks of cashback current accounts is that these are non-taxable options because they are seen as a discount.

Cons

❌️ Cashback might not compensate for fees — The fees you pay, depending on your account, might not match the cashback you earn. This disadvantage could mean this type of account might not be financially worth it.

❌️ Regular current accounts offer more interest — The amount of interest you earn from a cashback account is often lower than an ordinary current account. You may earn more interest on your funds with a regular account, meaning it may be better to choose this account type and not a cashback current account.

❌️ Packaged bank accounts offer more services — From mobile phone insurance to current account rewards such as overdraft limit, your packaged bank account may provide several additional perks compared with cashback options. They may be the better choice if you want to maximise your benefits.

❌️ They may not be ideal for overdrafts — If you regularly use your overdraft, cashback accounts might not work for you. While some provide you with overdrafts, the rate at which you earn cashback with these accounts dips or freezes if you are overdrawn. In this case, you won't reap the advantages of cashback rewards.

Best Cashback Accounts — Reviews

Now that we've looked at the perks and drawbacks of cashback accounts, we can look more closely at the best options available.

Here are the best current accounts with cashback available to Brits.

1. Barclays Bank Account

Barclays Bank offers cashback rewards for everyday spending. It works under the Barclays Blue Rewards scheme, which requires you to use the linked debit card and spend your money at retailers who participate in this scheme.

If you use Barclays Blue Rewards, you can instantly earn up to 15% cashback with those participating retailers. You will also receive personalised offers that match your specific spending habits.

What's more, if you want to receive your cashback in the form of cash directly into your account or as vouchers to donate to charity, Barclays offers you these options.

Some participating retailers you may spend money with to receive cashback rewards from Barclays include Ted Baker London, deliveroo, boohoo, wowcher, Oasis, Karen Millen and more. Barclays also adds extra retailers to their Blue Rewards scheme, meaning you will have additional options to earn cashback.

You must spend your cashback using the debit card you nominate for this account to receive it.

How to Use Barclays for Cashback

To use Barclays for cashback rewards, you must register via your mobile device and log into the service. You must already be a Barclays Blue Rewards customer to register.

Access the Barclays app and tap the “Get up to 15% cashback” option. You will have access to information about cashback and how it functions, which you should review before ensuring your financial details are correct. Once you tap “Continue”, you can decide whether to receive notifications about the most recent cashback offers.

You can select “Explore offers” to visit the cashback rewards website and view the offers currently available. To filter and receive the offers tailored to your spending habits, enter your postcode and date of birth for a personalised experience.

Pros

✔️ It offers a range of cashback offers.

✔️ You can choose to donate vouchers to charity.

Cons

❌️ A membership fee of £5 each month is required for Barclays Blue Rewards.

2. Nationwide Account

If you make a qualifying spend with Nationwide, you will be automatically eligible for 5% cashback (a maximum of £10 each month).

Qualifying spending refers to any purchases you complete using the debit card your account provider issues you. However, this excludes the Nationwide FlexOne Account.

Nationwide Bank also allows you and your spouse to earn cashback separately with a joint account. You will each be able to earn a maximum of £10 each month for each card you have.

Some ways you can earn cashback with Nationwide include when you make contactless payments, pay for products online, make a purchase in stores or buy groceries over the phone. You will find the full list of stores on the Nationwide Cashback website.

There are a few exclusions to be aware of if you are interested in the Nationwide cashback scheme. Suppose you pay at a petrol station, in-store concessions, telecoms, financial services, specialist stores, via PayPal, at food delivery services or offshore. In that case, these do not qualify for the qualifying spend.

Nationwide will calculate your cashback and credit it to the account from which your qualifying spend was made. 

How to Use Nationwide Cashback

With Nationwide, you will not need to register or request the cashback feature. If you earn any cashback, Nationwide will credit this to your account. You will receive the cashback payment within six weeks at the end of the calendar month. 

Pros

✔️ Joint accounts earn separate cashback.

✔️ You can earn significant sums each month.

Cons

❌️ Nationwide FlexOne accounts don’t receive cashback.

3. Chase Current Account

New Chase customers can earn 1% cashback on their initial £1,500 of their eligible spend. This sum equates to £15 cashback for everyday spending and payments you make with your debit cards.

There are exceptions to this, including purchasing items in antique shops, paying estate agent fees, gambling or placing bets and more.

As a Chase current account holder who applied before 9th May 2023, you will earn 1% for your everyday spending for the initial 12 months.

If you are wondering when the cashback will reach you, Chase will credit the balance when your debit card payment clears. They will round this cashback amount to the nearest penny as part of the credit process. If you use the card overseas, Chase will convert the amount to sterling and calculate cashback based on the result.

Pros

✔️ You can earn significant sums each month with Chase Bank.

✔️ Chase will round up your cashback to the nearest penny.

Cons

❌️ Low interest on savings account

4. Halifax Reward Account

With Halifax Bank, you can receive up to 15% cashback using their cashback extra scheme. You can activate the specific offers you are interested in and pay for your purchases with direct debit, a debit card or a credit card.

Halifax will then pay the cashback into your account at the end of the next month. For instance, you may redeem the offer in December, in which case you will receive your cashback in your account in January.

It's important to remember that the amount of cashback you receive may vary, and each retail offer can also change.

To be eligible for cashback extras from Halifax, you need to be 18 and over. You also require a credit or debit card from Halifax and should have registered for online banking. The scheme is only available to UK customers only.

Halifax enables you to monitor all the cashback you earn with each offer via the “My earnings” tab of the application. It helps you view your earnings over the previous three months.

How to Use Halifax Cashback

To use the Halifax cashback scheme, you can use a couple of methods. The first is with the mobile app. Sign in to your mobile banking app.

Navigate to or search for “Cashback extras”. On this tab, there will be a sign-up button; select the “Yes, sign me up” option and complete the actions prompted by the instructions to opt in. Once you have signed up, you can begin activating your offers. 

The second method is online banking. Sign in to your online banking and navigate to “Cashback extras” under “Get add-ons”. Click on “Find out more” and then “Set up Cashback Extras”. After you complete the instructions to opt in, you can activate the offers that pique your interest.

Pros

✔️ Halifax offers an app with an intuitive user interface to track rewards.

✔️ It offers significant sums in terms of cashback.

Cons

❌️ You must have online banking to qualify for Halifax cashback.

5. Lloyds Bank Account

Up to 15% cashback is available through Lloyds Bank, which you can earn by making purchases at selected retailers. Your amount may vary, but you can receive it when you purchase with your linked credit card, debit card or via direct debits.

You will receive your cashback paid to your account at the end of the next month if you are one of the eligible customers. Eligibility depends on your age and other factors. You must be 18 or over, own a Lloyds credit or debit card and have registered for internet banking.

Lloyds will pay your cashback on the final working day of the month after the redeeming transaction you make. They will pay the cashback into your oldest account as a default, but you can select an alternative account by contacting the account provider.

You can track how much cashback you have accumulated and earned by visiting your “Everyday Offers” page. This page will show the amount you have received over the previous three months, plus the qualifying transactions.

How to Use Lloyds Cashback

All you require to be eligible for Lloyds cashback is a Lloyds Bank current account and to have completed an online banking registration, plus a Lloyds credit card. You can earn cashback when you spend and make purchases at several specific retailers.

Some specific retailers you may earn cashback from when you make purchases with them include Sainsbury's, Booking.com, Sky and Costa Coffee.

Pros

✔️ You can track your cashback easily with Lloyds’ Everyday Offers page.

✔️ You can accumulate cashback from a range of retailers.

✔️ Lloyds offers significant cashback sums.

Cons

❌️ You must have online banking with Lloyds to qualify for cashback.

6. Virgin Money Current Account

As you spend your money from a Virgin Money account after registering for cashback, you will begin to earn this on each offer. You can request notifications related to current offers via email or push notifications.

Cashback offers have a few conditions, such as purchasing online to earn cashback in some circumstances.

Now, you can check the amount of cashback earned by visiting the Virgin Money cashback app.

You can check the cashback you may receive in the future and the current cashback you have as part of this process. If you don't have the mobile app, you cannot access Virgin Money cashback.

However, one perk is that if you have a joint account with Virgin Money, you can both receive and earn cashback sent to your cashback account.

With Virgin Money, you can earn cashback from direct debits. It's an easy process via the Virgin Money app. Keep reading to find out how to do it.

How to Use Virgin Money Cashback

To use the Virgin Money cashback, begin by registering by navigating to the “Discover section”. Once there, tap “Virgin Money Cashback”. With this method, you can earn cashback from the available offers via the account registered on the app.

Earning cashback from direct debits requires you to explore the available direct debit offers and establish your direct debit in line with the offer. 

Pros 

✔️ You can set up a joint account and receive separate cashback.

✔️ You can receive notifications for current offers from partners.

Cons

❌️ You must have the Virgin Money app to be eligible for cashback.

Best Current Accounts with Cashback: The Verdict

You need to choose a current account that works for you, and your decision might not be easy. However, each of the accounts listed in this article are ideal options you may consider — some of the best options include Barclays and Halifax, but ensure you select the option that is right for you.

Remember, it's crucial to consider the exclusions for each bank account and check the specific offers they provide. Once you have registered for your account, ensure you act fast before you lose the chance to earn cashback. Take advantage of the opportunity to earn while you spend with the best cashback current accounts.

FAQs

What Are Some Other Accounts That Offer Cashback?

Do All Bills Give You the Same Cashback Rates?

What Are Some Alternatives to a Cashback Account?

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