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  • FIRST POST
    • MSE Callum
    • By MSE Callum 12th Nov 19, 6:01 PM
    • 635Posts
    • 197Thanks
    MSE Callum
    NatWest and RBS to scrap bills cashback - what you need to know
    • #1
    • 12th Nov 19, 6:01 PM
    NatWest and RBS to scrap bills cashback - what you need to know 12th Nov 19 at 6:01 PM
    Around 1.7 million NatWest and RBS Reward account customers will stop earning cashback on their bills from February, MoneySavingExpert.com can reveal. They will instead be given incentives for logging into their account and having direct debits - here's how to check if it's still the best account for you...
    Read the full story:
    'NatWest and RBS to scrap bills cashback - what you need to know'

    Click reply below to discuss. If you havenít already, join the forum to reply.
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Page 1
    • sausage_time
    • By sausage_time 12th Nov 19, 8:19 PM
    • 252 Posts
    • 91 Thanks
    sausage_time
    • #2
    • 12th Nov 19, 8:19 PM
    • #2
    • 12th Nov 19, 8:19 PM
    Wonder how that will work for joint accounts - will both need to log in to app? Bit of a bummer in any case, was doing rather well out of the current arrangement.
    • Nessie23
    • By Nessie23 12th Nov 19, 9:10 PM
    • 242 Posts
    • 140 Thanks
    Nessie23
    • #3
    • 12th Nov 19, 9:10 PM
    • #3
    • 12th Nov 19, 9:10 PM
    The Natwest Rewards Credit card cashback will reduce from 0.5% to 0.25%. They haven't indicated yet a reduction in supermarket spend cashback, then again I'm not too optimistic on that front.

    There is already a thread discussing this:
    https://forums.moneysavingexpert.com/showthread.php?t=6067207
    • Consumerist
    • By Consumerist 12th Nov 19, 9:34 PM
    • 5,304 Posts
    • 2,647 Thanks
    Consumerist
    • #4
    • 12th Nov 19, 9:34 PM
    Beware the taxman
    • #4
    • 12th Nov 19, 9:34 PM
    Remember that only non-taxpayers will be able to earn £36 yearly. The Reward payments from NatWest/RBS are paid gross so are taxed as miscellaneous income at your marginal rate.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • griffb
    • By griffb 12th Nov 19, 10:42 PM
    • 113 Posts
    • 40 Thanks
    griffb
    • #5
    • 12th Nov 19, 10:42 PM
    • #5
    • 12th Nov 19, 10:42 PM
    Remember that only non-taxpayers will be able to earn £36 yearly. The Reward payments from NatWest/RBS are paid gross so are taxed as miscellaneous income at your marginal rate.
    Originally posted by Consumerist

    But any Rewards based on credit card spend will still be classed as "discount" rather than "annual payment" and therefore not taxable. Very messy.
    • Zero Sum
    • By Zero Sum 12th Nov 19, 11:18 PM
    • 1,530 Posts
    • 1,244 Thanks
    Zero Sum
    • #6
    • 12th Nov 19, 11:18 PM
    • #6
    • 12th Nov 19, 11:18 PM
    But any Rewards based on credit card spend will still be classed as "discount" rather than "annual payment" and therefore not taxable. Very messy.
    Originally posted by griffb
    The co-op account splits it so the £4 reward for having 4 DD's & paying in £800 pcm is actually £5 net of tax. Then the upto £1.50 cashback on debit card spend is non taxable as its a refund/discount.

    Have natwest actually said the new rewards are to be paid gross? Or is it an assumption cos the previous ones were (which wouldve been non taxable)

    That said arent Barclays rewards classed as cashback rather than a reward so not taxable & natwest new version does look very close to Barclays offer
    • LeytherMatt
    • By LeytherMatt 13th Nov 19, 10:09 AM
    • 3 Posts
    • 1 Thanks
    LeytherMatt
    • #7
    • 13th Nov 19, 10:09 AM
    • #7
    • 13th Nov 19, 10:09 AM
    I use NatWest for my joint account and the 2% on household bills has been a really good earner for me - does anyone know of any current accounts that I can switch to that offer a similar deal? I have noticed the HSBC £175 for switching but as it is our joint account rather than my personal current account we won't be paying in the required £1,750 a month.
    • PRAISETHESUN
    • By PRAISETHESUN 13th Nov 19, 10:42 AM
    • 1,432 Posts
    • 784 Thanks
    PRAISETHESUN
    • #8
    • 13th Nov 19, 10:42 AM
    • #8
    • 13th Nov 19, 10:42 AM
    I use NatWest for my joint account and the 2% on household bills has been a really good earner for me - does anyone know of any current accounts that I can switch to that offer a similar deal? I have noticed the HSBC £175 for switching but as it is our joint account rather than my personal current account we won't be paying in the required £1,750 a month.
    Originally posted by LeytherMatt
    The only other account that I'm aware off that pays cashback on household bills is the Santander 123 account. I'd recommend the "Lite" version (£1/month fee) as the full account (£5/month fee) doesn't pay enough interest to really warrant the monthly fee.
    • Gary_Dexter
    • By Gary_Dexter 13th Nov 19, 10:42 AM
    • 7,282 Posts
    • 4,845 Thanks
    Gary_Dexter
    • #9
    • 13th Nov 19, 10:42 AM
    • #9
    • 13th Nov 19, 10:42 AM
    I use NatWest for my joint account and the 2% on household bills has been a really good earner for me - does anyone know of any current accounts that I can switch to that offer a similar deal? I have noticed the HSBC £175 for switching but as it is our joint account rather than my personal current account we won't be paying in the required £1,750 a month.
    Originally posted by LeytherMatt
    Pay it in the transfer it straight back out again
    • LeytherMatt
    • By LeytherMatt 13th Nov 19, 2:53 PM
    • 3 Posts
    • 1 Thanks
    LeytherMatt
    The only other account that I'm aware off that pays cashback on household bills is the Santander 123 account. I'd recommend the "Lite" version (£1/month fee) as the full account (£5/month fee) doesn't pay enough interest to really warrant the monthly fee.
    Originally posted by PRAISETHESUN
    Thanks for that, will have a look at doing that alongside switching to HSBC.

    Pay it in the transfer it straight back out again
    Originally posted by Gary_Dexter
    I already transfer £1,000 in to a First Direct account in preparation for getting their leaving bonus so that shouldn't be a problem.
    • zagfles
    • By zagfles 13th Nov 19, 3:29 PM
    • 14,937 Posts
    • 13,523 Thanks
    zagfles
    If there's £5 in "incentives" and a £2 fee, presumably the full £5 will be taxable as an "annual payment", not the net £3?

    This will just make things complicated for anyone that does a tax return, claims tax credits or UC, has to declare income for stuff like student finance, is a higher rate taxpayer etc.
    • Ragsie66
    • By Ragsie66 13th Nov 19, 3:43 PM
    • 5 Posts
    • 0 Thanks
    Ragsie66
    Get out
    Just wondering after reading this can I get out off it and leave the bank of do I have to stay for full 12 months
    • Bigwigg
    • By Bigwigg 13th Nov 19, 3:48 PM
    • 125 Posts
    • 77 Thanks
    Bigwigg
    Thatís really crappy, I currently earn about £150-200 a year out of this account! Will look at swapping to Santander
    • Jimbob747
    • By Jimbob747 13th Nov 19, 3:50 PM
    • 1 Posts
    • 0 Thanks
    Jimbob747
    I've just joined NatWest, following their £150 switch incentive, signing up for their Reward Account. I have this account solely in my name, but it pays the household bills for my wife and I, so that's where the direct debits go. I keep it in my name as it's very easy for me to switch to another bank when the £100+ incentives exist (I made it a joint account once and it became much more complex to switch so I won't do that again). My wife and I also have separate accounts for that continuity that's nice to have for credit checks and ease of remembering your bank details etc.

    I regularly move the 'bill paying' account when the incentives are around - I've done it with Yorkshire, HSBC, First Direct, Halifax, and TSB. I stay for a while (and in NatWest's case I was intending to stay for a long while as I love their mobile app). Looks like i will be moving away from NatWest now as a result of their stopping the 2%/7 bills Rewards cashback, once my £150 incentive is paid [Jan/Feb]. I will only have been with them for about 5 months by the time I leave, so that'll have cost them £30/month and then they'll be losing me. Why give on the one hand if taking away with another? Bonkers to attract me with £150 and then lose me for the sake of the £5 per month net gain I make with Rewards??
    • leviathan
    • By leviathan 13th Nov 19, 4:35 PM
    • 252 Posts
    • 151 Thanks
    leviathan
    The only reason I'm still with natwest is the online banking.
    I've been with them for 20years+ and whilst I regularly do the tricks to get free money from other providers and have seen the service drop off a cliff it's only that which is keeping me with them.
    • griffb
    • By griffb 13th Nov 19, 5:05 PM
    • 113 Posts
    • 40 Thanks
    griffb
    I use NatWest for my joint account and the 2% on household bills has been a really good earner for me - does anyone know of any current accounts that I can switch to that offer a similar deal? I have noticed the HSBC £175 for switching but as it is our joint account rather than my personal current account we won't be paying in the required £1,750 a month.
    Originally posted by LeytherMatt
    Same here; the joint account only has the utility DDs going through (makes it a bit easier for wife if I pop my clogs suddenly. We each have our own NatWest accounts.)

    I also realised I don't think I'll qualify for the HSBC £175 switch reward - although it's been dormant over 20 years I still have my first ever bank account opened 47 years ago at Midland so not a new customer.
    • leviathan
    • By leviathan 13th Nov 19, 5:10 PM
    • 252 Posts
    • 151 Thanks
    leviathan
    I dont either but only becasue I had an account too recently with them.
    But what trauma that was.
    They had an address down for me incorrectly. I had last banked with them 22yrs ago but then had teh wrong address from al lthat long ago. So since theri incorrect records didn't match up I had to take all my ID into branch. To which I made a complain about why they had kept my information and at that incorrect information on their system for 20years but nothing other than an apology and goodwill gesture came out of it.
    I went through teh onborading for their online banking and it reminded my why I liked natwest.


    However thsi new stupid idea of needing your phone to do online banking for the SMS code has made it a lot les easier to use. I had already obtained many free card readers and distributed them at home, at work in the car etc. but I cannot exactly carry one on me at all times.
    • eskbanker
    • By eskbanker 13th Nov 19, 5:40 PM
    • 12,175 Posts
    • 15,099 Thanks
    eskbanker
    However thsi new stupid idea of needing your phone to do online banking for the SMS code has made it a lot les easier to use. I had already obtained many free card readers and distributed them at home, at work in the car etc. but I cannot exactly carry one on me at all times.
    Originally posted by leviathan
    Surely if you're miffed that you can't carry a card reader at all times then authenticating via something that most people will have with them at all times (or at least times when they feel the need to do online banking) will make life easier?

    Unless you're one of the small minority who either object in principle to using mobile phones or who can't get signals perhaps?
    • Zero Sum
    • By Zero Sum 13th Nov 19, 6:05 PM
    • 1,530 Posts
    • 1,244 Thanks
    Zero Sum
    The only reason I'm still with natwest is the online banking.
    I've been with them for 20years+ and whilst I regularly do the tricks to get free money from other providers and have seen the service drop off a cliff it's only that which is keeping me with them.
    Originally posted by leviathan
    Really?
    Im with loads of banks & for online banking imho nat west are the worst
    • ffacoffipawb
    • By ffacoffipawb 13th Nov 19, 7:22 PM
    • 3,030 Posts
    • 2,173 Thanks
    ffacoffipawb
    Only used this for cashback. May as well switch it into my main firstdirect account for simplicity. I am sure my next of kin will thank me for simplifying my accounts.

    I can certainly get rid if this and my 3 HBOS rewards which are barely worth the effort these days.

    And the 3 now dormant TSB current accounts.
    Retired: Financial Independence achieved in June 2019.

    Cofiwch Dryweryn
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