What is a cashback account?
It’s about as simple as it gets this one, cashback accounts are there to get you to switch over from your current account provider, with a cash bribe, some good old fashioned cash in the bank. Mostly this will consist of a payment into your new current account or you may find that certain fees are waived for a period of time.
The benefits of this type of cash back current account are clear – a cash lump sum or other reward when you switch your account over. Given today’s low interest rate environment and how difficult it can be to earn decent returns, this kind of incentive can be extremely valuable when it comes to giving your savings an extra boost. You usually get paid the cash back within three months of moving your account across to the new provider.
It’s easy to be tempted by cash back current accounts while ignoring what else the account is actually offering. Remember that if you go overdrawn regularly, you should check the overdraft charges, or if you tend to keep a large balance in your current account, you must find out how much interest you will earn if you are in credit.
You may be required to pay in a minimum amount each month to qualify for the switching incentive offered by the reward account. Bear in mind too that if you don’t meet this minimum deposit, in some cases you may be changed a monthly fee, which would soon wipe out the benefit of a cash bonus for switching. Some banks require that you pay in your salary each month, so always read the small print carefully first.
What else is out there?
If you can’t pay in a certain amount each month and therefore won’t qualify for a cash reward, then choose a current account that doesn’t require regular monthly deposits. There are plenty to pick from, so you should choose one that is appropriate for your needs – think about how you run your current account before moving, so that you know whether an account with high interest when you’re in credit or an account with low overdraft charges will suit you best.
The Top Five Deals
|Provider||Cashback||Monthly Fee||Visit Now|
||Halifax||Up to £160 in the 1st year||No monthly fee||Click Here|
||Clydesdale Bank||£150 cashback when you switch||No monthly fee||Click Here|
||Yorkshire Bank||£150 cashback when you switch||No monthly fee||Click Here|
||First Direct||£125 cashback when you switch||No monthly fee||Click Here|
||M&S Bank||£100 M&S Gift Card||No monthly fee||Click Here|