Which current accounts give cashback on bills?

Which current accounts give cashback on bills?


It’s a fact: nobody likes paying bills. But did you know that it’s possible to get cashback when you make a utility, broadband, or council tax payment? Here’s what you need to know about bank accounts that pay cashback.

How can I earn cashback with a bank account?

Some bank accounts offer cashback every time you pay a bill. To qualify, you usually have to pay your bills via direct debit and ensure that you pay in a minimum amount each month. The amount of cashback you can typically earn ranges from 1% to 3%.

And while cashback accounts usually charge a monthly fee, any cashback you earn can easily outweigh the fee – especially if you live in a large household, or have higher than average bills.

Which accounts currently pay cashback on bills?

There are a handful of bank accounts that pay cashback on household bills. Here’s the lowdown.

Santander 123 Lite

The Santander 123 Lite account pays 1% to 3% cashback on bills paid by direct debit. You can earn:

  • 1% cashback on phone, broadband, mobile and TV bills (excluding your TV licence). This rate is also paid on your mortgage (as long as it’s provided by Santander) and on your council tax bill. 
  • 2% cashback on gas and electricity bills. You also earn 2% if you have a Santander home insurance or life protection policy.
  • 3% cashback on water bills. 

You can earn a maximum of £5 each month under each rate. Therefore, you can potentially earn a maximum of £15 in cashback each month. The account has a £2 monthly fee. So if you earn the maximum cashback, you can earn up to £13 a month or £156 a year.

To qualify for the cashback, you must pay at least £500 per month into the account and log in at least once every three months.  

It’s worth knowing that Santander also has a non-Lite 123 account offering the same levels of cashback. However, it has a higher fee of £4 per month.

NatWest Reward

The NatWest Reward account has a £2 monthly fee. You can bag yourself a £4 monthly reward if you pay at least two direct debits from the account each month. The direct debits must be for at least £2 each and can include utility bills, such as your mobile phone payments or energy bills. 

You’ll also earn yourself a £1 reward for logging into your account each month. Plus, you’ll earn 1% back if you spend with one of NatWest’s retail partners.

Do be aware that you must pay at least £1,250 per month into the account in order to keep the account open.

Barclays Rewards

The Barclays Blue Rewards scheme is available to anyone with a Barclays bank account. You can earn yourself up to £7 each month, in return for a £4 monthly fee. To get the maximum reward, you must pay at least £800 into your account each month and pay out two direct debits. 

This scheme can be a real winner if you have other Barclays products. That’s because the account also pays its customers cashback on bills. You can earn:

  • 3% back if you take out or renew a Barclays home insurance product.
  • £5 per month if you have or take out a personal residential Barclays mortgage.
  • £1.50 per month if you take out Barclays life insurance, or £5 if you take out critical illness cover. These offers are only available during the first 12 months.

While the extra cashback can be a boon if you’re already a Barclays customer, don’t let it deter you from doing a full comparison for your mortgage, home insurance or life insurance.

Keen to learn more about current accounts? See our article covering eight questions to ask before opening one.

Still have questions?

If you didn’t find everything you were looking for on this page, we have other ways to help:

Was this article helpful?
YesNo

Some offers on MyWalletHero are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.