Top cashback bank accounts in the UK: features, costs, and tips

With the cost of living rising all the time, we’re all looking for ways to make our money go further. This is why cashback bank accounts are so popular, as they offer money back when you spend.

If you’re looking to get a great deal when spending on your debit card, this kind of account could be ideal. But what exactly are cashback bank accounts, and which one should you choose?

Read on, as we’ve put together an essential guide to cashback bank accounts in the UK. This includes features, costs and a roundup of the best cashback accounts on offer at the moment.

But while cashback cards are great for spending in the UK, they don’t offer so many benefits overseas. If you’re looking for ways to make your money go further while travelling, consider checking out Wise – a money services provider that could be a cost-effective alternative to a bank account.

The Wise account lets you send and receive in 40+ currencies, and coupled with the Wise card you can spend effortlessly in the local currency in 150+ countries, for low fees* and mid-market exchange rates.

Learn more about the Wise account

What is a cashback account?

A cashback account is one which gives you money back on certain card purchases. This is usually a fixed percentage. For example, you could get 1% back when you spend with certain retailers or merchants, or on certain categories of spending such as bills.

Many UK banks and building societies offer cashback accounts, or other kinds of cashback incentives linked to their current accounts and cards.

How does cashback work with bank accounts?

Cashback accounts tend to work in just the same way as an ordinary current account. You manage the account as normal, and spend on your linked debit card. If you make a qualifying purchase or pay a qualifying bill through your account, you’ll receive cashback. This is paid directly into your account, or it may be in the form of redeemable loyalty points or another reward.

Do bank accounts have cashback on bills too?

Some banks only offer cashback on qualifying purchases made on your card, such as to particular retailers.

But other bank accounts come with cashback on bills, including the Santander Edge account¹ we’ll look at shortly. This could include things like water, energy, council tax, mobile, phone, broadband and paid-for TV bills.

What is the maximum cashback you can get in the UK?

While banks may offer a percentage of cashback on spending, this is usually capped. This means you won’t be able to earn more than the maximum amount each month.

At the time of writing, the maximum cashback you can get with a UK bank account is £20 a month. This is with the Santander Edge account. However, the Chase Current Account offers 1% cashback on card purchases for a year, with no maximum. After 12 months, though, this is capped at £15 a month.¹

Cashback bank accounts in the UK

Now, let’s look at what cashback accounts are out there. To help you compare, we’ve put together a handy table of all the best cashback bank accounts in the UK at the moment, including key features, limits and other info you need to know.

The above accounts are great for earning cashback on purchases and payments in the UK. But most aren’t designed as travel current accounts, so they’re not ideal for spending internationally. This means you could face high fees and poor exchange rates.

Open a Wise account and you can send, spend, convert and receive money in 40+ currencies. You can even get a Wise card for spending in the local currency in 150+ countries.

It’s all for low fees and mid-market exchange rates, so you could save a bundle on all your international transactions.

Sign up with Wise

Santander Edge and 123

The Santander Edge current account offers 1% cashback on selected household bills made by Direct Debit. Plus, 1% cashback on supermarket and travel purchases made on your debit card. The cashback is capped at £10 per month for each category, so you can earn a maximum of £20 a month.²

The account also offers other benefits, such as access to exclusive savings products and an arranged overdraft if needed.²

The only catch is that there’s a £3 monthly fee to maintain the account. You’ll also need to have at least 2 Direct Debits and pay in at least £500 a month.²

Santander also has another account which offers cashback, the 123 Current Account. This offers up to 3% cashback on household bills, capped at £5 for each cashback tier each month. There’s a £4 monthly fee, but in return you’ll get interest on your balance and access to an arranged overdraft if needed.³

Chase Bank cashback

The Chase Bank current account offers 1% cashback on everyday debit card spending, with no maximum limit for 12 months. There’s no monthly fee to worry about, and you’ll also get access to linked savings products with competitive interest rates.⁴

Chase also owns digital wealth manager Nutmeg, so you can manage investments (if you have any) in the Chase mobile banking app.⁴

Nationwide FlexAccount cashback

A few Nationwide current accounts offer cashback, including its FlexAccount. For a limited time until 30th April 2023, you can get 5% cashback on supermarket shopping using your debit card. The amount you can earn is up to £10 a month, and a wide range of supermarkets are included in the offer.⁵

The FlexAccount also offers access to an optional savings account and other Nationwide products, plus an arranged overdraft if you need it. There are no monthly fees to worry about either.⁵

TSB Bank cashback

Open a TSB Spend & Save current account and you can earn £5 cashback a month, for the first 6 months account. To get it, you must make at least 20 card payments each month.⁶

You can also get an optional arranged overdraft and 2.50% interest on your money when you set up a Savings Pot.⁶

The cashback is also available with the TSB Spend & Save Plus account, with no six-month limit. There’s a monthly fee of £3 for maintaining the account, but in return you’ll get other perks such as a £100 interest-free overdraft and no TSB charge when using your debit card overseas.⁷

Halifax Reward Current Account cashback

The Halifax Reward Current Account has a £3 monthly maintenance fee (unless you pay in £1,500 a month), but offers lots of perks in return. You can choose from monthly rewards including cashback, cinema tickets, digital magazines and movie rentals, and access exclusive savings products.⁸

And like with some other Halifax current accounts, you’ll also get access to its Cashback Extras programme. This gives you up to 15% on spending from selected retailers and merchants.⁸

NatWest Rewards Account cashback

The NatWest Rewards Account offers the chance to earn Rewards, which you can redeem as cashback, gift cards or e-codes. You’ll earn £4 a month in cashback for having two or more Direct Debits going out of the account. Plus, an additional 1% in Rewards when you spend at selected retail partners. The account also offers an arranged overdraft if needed.⁹

However, there’s a £2 monthly fee, and you’ll need to be able to pay in at least £1,250 a month.⁹

The Co-operative Bank Everyday Rewards Scheme

Open a standard Current Account or another kind of current account with the Co-operative, and you can benefit from its Everyday Rewards scheme. This lets you earn up to £2.20 a month in cashback or charitable donations.¹⁰

If you meet the requirements, which includes paying in at least £800 a month, you’ll earn £1 a month in cashback automatically. You can also earn up to £1.20 a month in card spending each month.¹⁰

Lloyds Classic Account - Everyday Offers cashback

Open a Lloyds Bank Classic Account and you’ll get access to the bank’s Everyday Offers scheme. This gives you up to 15% cashback when you spend on your card at selected retailers. This includes JustEat, Costa Coffee and Sainsburys, although offers can change.¹¹

There’s no monthly fee, and you can get access to an overdraft facility if needed.¹¹

Take advantage of current account switching bonuses to save even more money

For many of the current accounts we’ve listed above, there’s an additional way to earn some extra cash by signing up. Many banks offer switching bonuses, which can go as high as £200 in some cases. This is on top of cashback, so you could make a decent amount by switching banks.

And that’s it - our roundup of the best cashback accounts in the UK. After reading this, you should be all set to choose the one for you, or you can even switch between them to take advantage of all those switching bonuses.

And, if you’re frequently travelling abroad, check out the Wise account. You can spend like a local in 150+ countries with transparent fees* and the mid-market exchange rate.

Sign up with Wise today 💰

Sources used:

Sources last checked on date: 07-Mar-2023