The big current account changes coming your way

Tesco Bank’s massive 3% cashback current account has finally returned after a swell of applications back in February brought the account off the market. Elsewhere, Natwest has cut cashback and added more stringent requirements for new customers of their Reward current accounts.

The return of Tesco Bank’s current account

In a climate of low interest rates, many are now depending on current accounts to earn interest on their money. Tesco Bank’s current account freeze back in February dismayed many savers. With the account back on the table, there are now a number of requirements that new customers must meet to qualify for the interest benefit.

So, is it still worth it?

That’s for you to decide. The Tesco Bank current account offers a decent 3% variable interest on balances up to £3,000, letting you earn up to £90 a year in a single account or £180 in a joint account. What’s more, you get the maximum 3% interest rate until 1 April 2019 with absolutely no monthly account fee.

To guarantee the maximum 3% interest rate you must pay a minimum of £750 into the account each month, and have at least three active monthly direct debits (excluding direct debits to Tesco Bank savings accounts).

Time for some good news – you’ll still get Clubcard points on your spending, with 1 point per £1 spent at Tesco or 1 point for every £8 spent elsewhere. Clubcard points can be turned into vouchers to be used with Clubcard Partners like Cineworld, PizzaExpress and Avios!

Natwest’s new rules

In other current account news, Natwest has introduced a cut in cashback and a hefty minimum pay-in for new customers applying for their Reward Account.

Account holders currently pay £3 a month and earn 3% cashback on seven qualifying household bills (council tax, mobile, landline, TV package, water, gas, electricity and broadband). Customers who open a Reward account from 26 June 2017, will see the monthly fee drop to £2 a month but cashback on household bills will also fall to 2%.

The changes also apply to RBS’s Reward account, which is the Scottish equivalent.

Want to know what’s worth the switch?

If your current account isn’t sizing up or you fancy a change, there are other options: 

  • The TSB Classic Plus account pays up to 3% interest on balances up to £1,500, with no monthly fee. What’s more, you also get £5 cashback every month just for regularly spending with your debit card.

  • The 123 current account from Santander pays up to 1.5% on balances up to £20,000 plus up to 3% cashback on bills.

  • The Nationwide Flexplus account pays 3% interest on up to £2,500, for a fee of just £10 a month. You can also enjoy great cashback offers at a range of restaurants, travel and high street brands with Simply Rewards!

Last updated: Tuesday, 11 April 2017


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