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    • gt94sss2
    • By gt94sss2 3rd Oct 15, 9:17 PM
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    gt94sss2
    Natwest/RBS to launch 3% cashback account
    • #1
    • 3rd Oct 15, 9:17 PM
    Natwest/RBS to launch 3% cashback account 3rd Oct 15 at 9:17 PM
    I know this has been available to selected Natwest/RBS customers for a while, but it now looks as if they are ready for a national rollout (launches 12 October)

    The NatWest/RBS account, which carries a fee of £3 a month, will offer customers 3% cashback on seven types of household bill – council tax, gas, electricity, water, phones, TV and broadband – with no limit to the amount that can be earned. The majority state-owned RBS said, on average, customers would be able to earn £90 a year, and anyone paying eligible bills totalling more than £100 a month via direct debit would earn enough to cancel out the fee.
    from here

    Will be interesting to see how it fares given the pending changes to the Santander 123 account - Natwest/RBS are paying more in cash back on a number of categories (where Santander only pay 1% or 2%) and for a lower monthly fee.

    However, the Santander account does pay up to 3% interest on balances (max:£20,000) so is likely to be better for savers as I see no reference to Natwest/RBS matching this.

    Regards
    Sunil
    Last edited by gt94sss2; 03-10-2015 at 9:35 PM.
Page 3
    • ratechaser
    • By ratechaser 6th Oct 15, 9:59 AM
    • 554 Posts
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    ratechaser
    Well I've got existing accounts with both Natwest and Santander, and from the information I've seen so far, I won't be making any changes whatsoever to my banking arrangements. The days of free banking may well be coming to an end, but Natwest won't be dragging me in that direction simply by offering a few percent on household bills, especially as most of those DDs are already shifted to Santander.


    Interestingly, last time I met my Natwest relationship manger, he was intimating that there was also a new cashback credit card coming from them - with an £80-ish fee, but non-amex, and supposedly with no foreign exchange fees too. Be interesting to see how that stacks up to Santander if it ever does materialise...
    • Former MSE Helen
    • By Former MSE Helen 6th Oct 15, 12:19 PM
    • 2,324 Posts
    • 971 Thanks
    Former MSE Helen
    MSE News: RBS to launch cashback current account, but is it any good?
    NatWest and RBS are launching a current account that will pay 3% cashback on household bills for a £3/month fee...

    Read the full story:

    RBS to launch cashback current account, but is it any good?




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

    • kpearsoncj
    • By kpearsoncj 6th Oct 15, 12:30 PM
    • 247 Posts
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    kpearsoncj
    For me no as u have to be with rbs scotland.
    • Pincher
    • By Pincher 6th Oct 15, 1:56 PM
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    Pincher
    No cashback on the mortgage, of course, so you are looking at about 3% on £3~£4,000 for the usual Council tax, gas, electric and water, plus phone/broadband/TV. 3% on £4,000 is £120.

    It's almost identical to a 6% Regular Saver, i.e. a £120 loss leader to get you to apply. Once on board, sell you more stuff.

    Too many accounts already, can't be bothered.
    • OllyM
    • By OllyM 6th Oct 15, 2:00 PM
    • 369 Posts
    • 212 Thanks
    OllyM
    Interestingly, last time I met my Natwest relationship manger, he was intimating that there was also a new cashback credit card coming from them - with an £80-ish fee, but non-amex, and supposedly with no foreign exchange fees too. Be interesting to see how that stacks up to Santander if it ever does materialise...
    Originally posted by ratechaser
    It's been around for a while - info about it is here.

    It's terrible though, it earns the same cashback as the £24/year cashback card so you're paying £60 a year more for no foreign transaction fees...
    • ratechaser
    • By ratechaser 6th Oct 15, 2:29 PM
    • 554 Posts
    • 468 Thanks
    ratechaser
    It's been around for a while - info about it is here.

    It's terrible though, it earns the same cashback as the £24/year cashback card so you're paying £60 a year more for no foreign transaction fees...
    Originally posted by OllyM


    Aha, thanks for the link. Conceptually I quite like it as it does combine a flat 0.5% cashback minimum with the zero foreign fees aspect (and indeed suggests the 0.5% applies abroad too?). the one irritant I've found with my current Amex Plat/Sandander 123 CC combo is that there are too many spending holes where I can't earn any CB because the retailer doesn't accept amex and it's not on the list of Santander CB earners.


    And I really don't want to be fiddling around with more than 2 CCs either! Amex Plat + 1 more maximum... So I'll have to get the calculator out to decide whether I'd earn more CB from this Natwest card or from Santander. I suspect it will be very tight especially with the Santander fee increase on the way...
    • DragonQ
    • By DragonQ 6th Oct 15, 2:37 PM
    • 2,031 Posts
    • 692 Thanks
    DragonQ
    It's terrible though, it earns the same cashback as the £24/year cashback card so you're paying £60 a year more for no foreign transaction fees...
    Originally posted by OllyM
    Something one can get for free (Halifax Clarity credit card, Nationwide Select credit card, Metro Bank debit card, etc.).
    • chambta
    • By chambta 6th Oct 15, 5:58 PM
    • 2,739 Posts
    • 1,011 Thanks
    chambta
    I asked about this in my branch yesterday, and after getting a blank look the staff member went away came back and told me the details, and sorry to say I don't think I will bother personally, as she said:

    1. Its is not available on Basic Accounts or the Select Account, but only the 'Added Value' accounts, so in order to get this 'Deal' I would need to upgrade to the Select Silver at £10 per month, and considering I have just Downgraded from the Platinum as I did not feel I was getting the benefits I don't fancy paying £10 a month just to get cash back !.

    2. She said only certain types of council tax bands would be eligible, and it would need to be a local authority council tax bill !, again that's me knackered as my branch is no longer in the same area as I live now.

    3. You would only be eligible if you already had Direct Debits set up for the bills, and not if you simply set them up now. I don't see how that part could be true as if I walked in to open an account as a brand new customer I would not have any Direct Debits set up !.

    Conclusions

    1. They don't know what they are talking about.

    2. They don't want a lot of customers joining the scheme so they are trying to make it difficult for them.

    To me it just seems too make hassle for what could be a very small reward if they do make you upgrade your account, and restrict what council tax group you are in.
    Originally posted by AlisonGray
    Someone certainly didn't know what they were talking about.

    Certain council tax band? In the area of your branch?

    Which branch did you go into? Unless you're in Scotland the new scheme won't be available.
    • Archi Bald
    • By Archi Bald 6th Oct 15, 7:16 PM
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    Archi Bald
    Unless you're in Scotland the new scheme won't be available.
    Originally posted by chambta
    Where did you get that idea from?
    • michaels
    • By michaels 6th Oct 15, 9:36 PM
    • 22,401 Posts
    • 103,136 Thanks
    michaels
    So If you have a santander account with 20k in is it worth getting one of these as well for the higher DD rate on most bills given that you will still be paying the 1-2-3 fee to access the savings rate?
    Cool heads and compromise
    • Thrugelmir
    • By Thrugelmir 6th Oct 15, 9:43 PM
    • 63,125 Posts
    • 56,030 Thanks
    Thrugelmir
    You can't really call a trend from this!
    Originally posted by Zanderman
    I heard Ross McEwan (now CEO of RBS) speak some years back when he ran UK retail banking under Hester. Charging fees on current accounts was a topic back then. As his personal view was that free current account banking in the longer term as a business model was unsustainable.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • Westie983
    • By Westie983 6th Oct 15, 9:55 PM
    • 4,740 Posts
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    Westie983
    Looks like you have to already have a packaged account so you pay £10 a month to then pay £3 to then get the cashback....

    have I understood this correctly?
    Save 12k in 2019 #42 Total (£16000)+£750/£12000 = 6.25%
    Sealed Pot Challenge ~ 12 #97 Total (£450)+£55/£500 = 11.00% ( x 11)
    Xmas 2019 £1 a Day #20 Total (£165)+£35/£365 = 9.58%
    Virtual Sealed Pot #1 Total (£1300)+£200/£1000 = 20.00%
    £2 Savers Club 2018 #16 Total (£1030)+£0/£2000 = 0.0%

    Total £1040.00/£15865 = 6.55%
    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • colsten
    • By colsten 7th Oct 15, 7:06 AM
    • 10,293 Posts
    • 9,480 Thanks
    colsten
    Looks like you have to already have a packaged account so you pay £10 a month to then pay £3 to then get the cashback....

    have I understood this correctly?
    Originally posted by Westie983
    No you have not. The account they launch on the 12th costs £3 a month, and you do not need to be an existing premier account holder in order to get it.
    • gt94sss2
    • By gt94sss2 7th Oct 15, 10:35 AM
    • 4,241 Posts
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    gt94sss2
    So If you have a santander account with 20k in is it worth getting one of these as well for the higher DD rate on most bills given that you will still be paying the 1-2-3 fee to access the savings rate?
    Originally posted by michaels
    Depends on the level of your bills and if the £3 charge will be outweighed by the higher cashback that Natwest offer?
    • gt94sss2
    • By gt94sss2 7th Oct 15, 10:49 AM
    • 4,241 Posts
    • 2,010 Thanks
    gt94sss2
    And I really don't want to be fiddling around with more than 2 CCs either! Amex Plat + 1 more maximum... So I'll have to get the calculator out to decide whether I'd earn more CB from this Natwest card or from Santander. I suspect it will be very tight especially with the Santander fee increase on the way...
    Originally posted by ratechaser
    The MSE article on the account states:

    If you hold a Reward credit card, the annual fee will also be refunded if you also hold the Reward current account.
    I presume they are referring to the card with the £24 annual fee - no idea how good the card is (haven't looked).

    A real shame the account doesn't include any cashback on Natwest mortgage payments, even if they are not doing credit interest.

    Regards
    Sunil
    Last edited by gt94sss2; 07-10-2015 at 10:54 AM.
    • ratechaser
    • By ratechaser 7th Oct 15, 4:22 PM
    • 554 Posts
    • 468 Thanks
    ratechaser

    A real shame the account doesn't include any cashback on Natwest mortgage payments, even if they are not doing credit interest.

    Regards
    Sunil
    Originally posted by gt94sss2
    Yep, the £10 that santander pay me each month for a DD to what is now a totally manufactured mortgage with them is really a nice touch

    I really wish their mortgages would allow multiple DDs in, now THAT could be lucrative if you have multiple 123 accounts!
    • Zanderman
    • By Zanderman 7th Oct 15, 4:51 PM
    • 2,141 Posts
    • 4,944 Thanks
    Zanderman
    I heard Ross McEwan (now CEO of RBS) speak some years back when he ran UK retail banking under Hester. Charging fees on current accounts was a topic back then. As his personal view was that free current account banking in the longer term as a business model was unsustainable.
    Originally posted by Thrugelmir
    I know I shouldn't be rising to this but, as I said before... you can't call a trend from that!

    A bank CEO (they don't really have a good reputation for seeing the future you know) told you 'some years ago' that fees on current accounts would become the norm. And now, er, some years later, they, er, haven't. They really really haven't.

    The new NatWest/RBS account discussed in this thread charges a fee, but that's clearly to help cover the costs of the cashback they offer - it is, in effect, a packaged account, for which fees have always been the norm. Santander is the same - they charge a fee for an account that offers significant discounts. It's effectively a package - for which a fee is obviously reasonable.

    Meanwhile, in the same few weeks, Tesco abolish their current account fee. Is that a trend?

    And most current accounts, especially those that don't offer cashbacks, discounts etc simply don't have fees. Some, like Halifax rewards, actually pay you to have the account!

    There is, at least at present, no trend (either way)!
    • chambta
    • By chambta 7th Oct 15, 7:23 PM
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    • 1,011 Thanks
    chambta
    Where did you get that idea from?
    Originally posted by Archi Bald
    It isn't being offered via divested RBS branches in England and Wales.

    Did you think differently?
    • Archi Bald
    • By Archi Bald 7th Oct 15, 7:37 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    It isn't being offered via divested RBS branches in England and Wales.

    Did you think differently?
    Originally posted by chambta
    That isn't the same as your blanket statement "Unless you're in Scotland the new scheme won't be available."

    The new account will be available for people outside Scotland.
    • chambta
    • By chambta 7th Oct 15, 8:37 PM
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    chambta
    That isn't the same as your blanket statement "Unless you're in Scotland the new scheme won't be available."

    The new account will be available for people outside Scotland.
    Originally posted by Archi Bald
    I was responding directly to someone who was an RBS customer so my statement, in context, was correct.
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