Cashback Bank Accounts

jk0

I bet you've all seen the cashback bank accounts that are coming out. There seems to be another one every day. Most seem to require a certain amount of monthly funding, and a certain number of direct debits.

They give cashback on utility bills among other things. How does that come about? Do the banks get any commission on utility bill payments from the suppliers, or is this just a 'hook' to get you to transfer to them which may be withdrawn in years to come?

Goldiegirl

You'll probably get more replies regarding how it works on the banking board.

I have a Santander 123 account. I have 20k in the account for the 3% interest, and I pay my bills from this account to take advantage of the cashback. The fee for this account is going up from £3 to £5 a month, but at the moment the benefits of the account outweighs the fee.

Who knows if they'll continue to pay the cashback for ever? The key is to take advantage of it while you can. These days, no one keeps a bank account forever - if it's no longer suitable, switch to one that is.

joedenise

Goldiegirl - the current rate is £2 per month going up to £5 from January.

I've also got the account and keep my savings in there (also have some in ISAs) as 3% interest, even after tax, is better than other savings accounts.

I suspect they will withdraw the cashback on utilities over time but for the time being, while I'm making money from it, I'll stick with it.

I have another account in order to get my travel insurance and another which I use when I go to Europe to get cash fee free.

All accounts useful for the perks.

Denise

Lindlou

And dont forget the interest tax changes soon