Thanks to Open Banking and stringent regulation, High Street banks have been forced to up their game in order to attract and retain customers.
Many banks are now offering generous switching bonuses and cashback incentives to convince you to bank and stay with them, and in some cases these deals can dwarf the amount of interest that you would receive from a competing account.
Here is our guide to the top five cashback current accounts that you can open right now.
1. HSBC Advance Account
- Total cashback: £200
To get the maximum benefit from this account, you need to switch to HSBC from another bank.
New customers will get a £150 signing up bonus, plus another £50 if you keep the account open for a year. Advance Account holders will also be eligible for HSBC’s inflation-busting five per cent regular savings account.
However, in order to get these benefits you have to be able to pay in at least £1,750 per month, which means you need to be earning a pre-tax salary of at least £23,000 per year.
Furthermore, there is no interest offered to Advance Account holders, other than the £200 cashback offer. If you were depositing the minimum amount of money each month, the cashback would be equal to less than one per cent in annual interest.
Compare the Best UK Savings Rates
2. First Direct Current Account
- Total cashback: £225
First Direct is currently offering switchers a £125 joining bonus, and it will give you another £100 if you decide to leave after six months.
Current account holders will also get a £250 interest-free overdraft, and access to a savings account which pays five per cent.
However, to qualify for these benefits, you will need to be paying in £1,000 per month – if you don’t, you will be charged a £10 monthly admin fee.
3. Santander 123 Lite
- Total cashback: Between one and three per cent on your household bills.
One of the most popular accounts in the UK, the Santander 123 Lite offers cashback of between one and three per cent on a range of household bills, just as long as you set up payments via direct debit.
And if you hold a Santander mortgage, you can also get up to £10 per month in cashback.
The 123 Lite account costs £1 per month and customers must pay in a minimum of £500 per month, as well as maintaining at least two direct debits at all times.
4. Natwest Reward Account
- Total cashback: £83 per year, on average.
For a monthly fee of £2, Natwest Reward Account customers can receive two per cent cashback on a range of household bills.
Natwest statistics suggest that its customers can earn £83 on average per year by paying seven types of household bills via the Reward Account. On top of this, customers can receive a flat rate of one per cent cashback through a range of popular retailers.
5. Barclays Bank Account (Blue Rewards)
- Total cashback: £7 per month plus one per cent from popular retailers.
The Barclays Bank Account does not offer any interest, but if you pay £3 per month for a Blue Rewards current account, you can unlock some great cashback deals.
For a start, Barclays will pay you £7 per month if you add two direct debits, plus you will receive one per cent cashback when you shop with 150+ popular retailers.
Extra rewards are also available to customers who wish to take out a Barclays mortgage or personal loan.