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Reward Current Accounts

What is a reward current account?

A reward current account is effectively the same as a standard current account, the key differences are that you get rewarded for using the account and the account often isn’t free.

Reward current account

What type of reward can I get with a reward current account?

This will depend on which bank or building society you open an account with. Typically, a reward current account will come with one or more of the following:
  • Cashback on bills you pay from that account
  • Cashback when you spend on your debit card in selected shops
  • Interest free overdraftsFree cash withdrawals overseas
  • Cashback when you pay a certain amount into the account (such as £5 cashback if you pay in at least £1,500 a month)
Some reward accounts will also offer other insurance and financial products included in the monthly fee, such as: 
  • Travel insurance
  • Home insurance
  • Breakdown cover
  • Mobile phone insurance

Who offers the best reward current account? 

This depends entirely on what benefits you want from the account, for example, you might be more interested in getting insurance products rather than cashback. There are many reward current accounts to choose from and there are a number of things you can compare to find the best reward account for your personal needs, including: 
Account fees - you have to pay a monthly maintenance fee for most reward current accounts and it tends to vary between £1 and £45 per month. The fee is automatically deducted from your balance each month. 
Interest rate -  some bank providers offer competitive interest rates on their reward current accounts.
Reward requirements - many bank providers have one or more requirements that you must meet each month in order to benefit from the rewards. You probably won’t have to meet all of the requirements, but at least one or two. Requirements could include: 
  • Pay in a minimum deposit each month
  • Spend a minimum amount each month on your debit card
  • Log in to the app or online banking at least once a month
  • Have at least one or two direct debit payments paid from the account each month

Should I open a reward current account? 

You should only open a reward current account if: 
  • You’ll make the most of the benefits that come with the account, you don’t want to pay £20 each month for an account that includes insurance products if you aren’t going to need them. The benefits are suitable for your needs. Read the terms and conditions thoroughly as some insurance products come with exclusions. 
  • You don’t already have the benefits on offer. If you’ve already paid for the insurance products on offer, you probably won’t need the account.
  • It will save you money compared to purchasing the benefits separately. Add up the individual costs of the benefits on offer and make sure the total value is more than the account fee. 
You’ll also need to check if you’re eligible to open an account. You might not be able to open a reward current account if you:
  • Earn less than the minimum amount specified
  • Are younger than the minimum age specified
  • Have ever missed a payment on your credit record
Always check if you’re eligible for an account before applying because your application might get rejected and it could have a negative impact on your credit score.