Best bank accounts for rewardsSantander and M&S Bank launch new schemes

25 July 2016

The new Santander 123 lite current account has a monthly fee of £1

From interest on credit balances to cashback on utility bills, many banks now offer perks with their current accounts to entice you to switch.  

Here, we round up the best rewards available to current account customers, including a couple of new offers introduced in the past week.

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Cashback on utility bills

The Santander 123 current account offers 3% AER on balances between £3,000 and £20,000 and up to 3% cashback on selected household bills. Many people have switched to Santander in the past few years to take advantage of this account, but the number of switchers has fallen dramatically since it was announced in September 2015 that the monthly fee would increase from £3 to £5.  

The Spanish bank has now launched a cheaper alternative. The 123 Lite current account charges a monthly fee of £1 and offers the same cashback scheme, but no interest on in-credit balances.

NatWest offers 3% cashback on seven household bills with its Reward current account, which has a monthly fee of £3. 

Retail vouchers and cash bonuses

Last week, M&S Bank relaunched an incentive offering new customers £100 worth of M&S vouchers for switching, plus an additional £10 voucher each month for a year. To qualify, customers must pay in at least £1,000 a month and have two direct debits set up. 

Halifax offers a similar current account deal where new customers are paid a £100 cash incentive for switching, plus an additional £5 each month provided they pay in at least £750, pay out two direct debits and stay in credit.  

The TSB Plus Account pays 5% cashback on customers' first £100 of contactless spending every month, as well as 5% AER on balances of up to £2,000.

Rewards for loyalty 

As part of its Blue Rewards scheme, Barclays will pay current account customers £7 per month, provided they pay in at least £800 and have two direct debits set up. They'll get an additional £5 a month if they have a mortgage with Barclays and a further £3 a month if they have Barclays home or contents insurance. This scheme also allows customers to earn cashback when shopping with over 180 retailers. The monthly fee is £3.   

All of the current accounts mentioned require customers to adhere to certain terms in order for them to receive rewards. Check these terms before switching account. 

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