TSB has launched a new cashback-paying current account which offers a £5 reward each month for making 30 debit card payments online or in store.
Its new Spend & Save Plus account costs £3 a month and includes features such as fee-free spending abroad and a £100 interest-free overdraft.
There is also a free version, Spend & Save, which launched last September. This also pays £5 cashback per month, but only for the first six months, and it doesn't have as many perks.
Here, Which? looks at what the account offers in more detail, how it compares to other providers and whether you should switch.
Spend & Save Plus is a fee-paying account costing £3 a month.
It includes the same features as the free Spend & Save account such as Savings Pots, Save the Pennies (an automatic spending round-up), Auto Balancer (which moves money from Savings Pots) and text alerts to help customers best manage their money, but also includes the following additional features:
A few banks and building societies offer cashback as an incentive to open or retain an account.
The NatWest and RBS Reward accounts cost £2 per month, and you can earn up to £5 per month. You can earn £4 for paying out two or more direct debits plus £1 for logging into the mobile banking app each month. You can only apply for a Reward account if you can pay in £1,250 each calendar month to any eligible NatWest/RBS account (excludes Foundation, Basic or Mortgage).
The Halifax Reward current account costs £3 a month (or is free if you pay in £1,500 a month) and pays £5 cashback if you pay in £1,500 a month and either spend £500 on your card or maintain a balance of £5,000 in a month.
The Barclays Blue Rewards account costs £4 per month and offers £7 cashback. However, you'd need to pay out two direct debits, and pay in £800 per month to unlock the reward.
Ultimately, you need to consider how much you can pay into an account each and how much you can afford to spend to enjoy the benefits. With TSB's Spend & Save Plus account you may not make 30 purchases a month, which is required to enjoy the rewards.
You should also consider what TSB's customer service is like and if it can meet your everyday banking needs. In our on the best and worst current account providers, TSB came 18th out of 24 providers, behind the likes of HSBC, Lloyds and Barclays.
While the bank wasn't a top scorer, everybody's banking needs are different, so some of its features may appeal to you. Perhaps you need an interest-free overdraft to pay off your debts, or you bank in-branch and know you'll have easier access to its services. Although, it's worth noting TSB recently announced that in 2021.
If you already bank with TSB and are satisfied, consider upgrading to the paid account if you think you'll benefit from its features, can afford the monthly fee, and meet the requirements.
Most banks have agreed to use the current account switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.