Get a Christmas bonus from a bank
We regularly write about the benefits of using cashback credit cards wisely. But not everyone likes using a credit card to pay for their spending, and they have very valid reasons.
If you prefer to manage your money with a debit card, you can still earn some extra cash from moving to the right current account.
Here are some of the top current account offers available right now. Of course, pair them with a cashback credit card and you can earn even more!
NatWest and RBS
NatWest and RBS offer the Reward account, another current account which pays cashback on your household bills. You get a flat rate of 3% cashback (or Rewards as the banks call them) on your phone and broadband, Council Tax, gas and electricity, mobile, water and TV bills.
The account costs £3 a month, so as long as you pay out more than £100 in eligible direct debits a month, you'll end up making money from the Reward account.
Santander
The Santander 123 Current Account offers cashback on your household bills. You'll get 1% on water, Council Tax and Santander mortgage repayments (up to a maximum of £1,000 a month); 2% on gas and electricity bills; and 3% on mobile, home phone, broadband and paid TV contracts.
You can also earn up to 3% on your in-credit balance. The account pays 1% on balances from £1,000 to £1,999, 2% on balances from £2,000 to £2,999, and 3% on balances from £3,000 to £20,000.
You'll also be able to earn up to 15% cashback when you shop in-store and online at participating retailers through a new scheme called Retailer Offers.
To qualify, you must fund the account with at least £500 a month and set up at least two direct debits (although you'll want to set up all your eligible bills if you want to earn cashback on them) and pay a £2 monthly fee.
However, from 11th January 2016 this fee will jump to £5 a month.
Halifax
Halifax is offering £100 to those that switch to its current accounts.
The offer applies to the Current Account, Reward Current Account and Ultimate Reward Current Account.
The Reward Current Account is a particularly good deal to go for. It pays £5 a month, providing you credit the account with £750 each month, pay out at least two direct debits per month and manage to stay out of the red.
You'll also be able to benefit from a scheme called Cashback Extras, which allows you to earn money when you shop online at certain retailers.
There's another big benefit too. Switch to a Halifax current account before the end of January 2016 and you'll be entered into the bank's Switcher Prize Draw. There are 215 cash prizes to be won: one person will get £50,000, four people will win £5,000, 10 people will win £1,000 and 200 people will bag £100 prizes.
The draw will be held on 19th February 2016.
First Direct
First Direct offers new customers a £100 joining bonus if they open a 1st Account.
To avoid the £10 fee monthly fee for the account you'll need to pay in at least £1,000 a month. Alternatively, you'll need to have another First Direct product – such as a savings account or insurance.
The account comes with a £250 fee-free overdraft, exclusive access to First Direct products like its market-leading 6% regular savings account and is consistently recognised for its high level of customer service.
Plus in the unlikely event that you don't like the bank and decide to leave after a year it will pay you another £100.
Barclays
Barclays offers the Blue Rewards scheme. Providing you are a current account customer aged 18 or over, deposit £800 a month, have two direct debits set up, and sign up to online banking or the Barclays mobile banking app, you'll be paid £7 a month, although there's a £3 a month fee, so you'll actually only pocket £4 a month.
If you have a Barclays mortgage you'll get an extra £5 a month, with £3 a month for home insurance customers, so you could earn a maximum of £12 a month. However, getting other financial products from your main bank can often be a false economy, so you need to be sure that your deal is a good one away from any cashback benefit.
Barclays customers can also earn cashback with over 110 retailers, including Boots, GAP and Expedia.
M&S Bank
M&S Bank doesn't hand over cold, hard cash to switchers like the other banks, but instead offers a £100 M&S gift card when you switch to one of its current accounts.
Those going for the fee-free M&S Bank Current Account will get a £500 overdraft where the first £100 is interest free, preferential rates on selected M&S Bank products like the market leading 6% regular savings account and the ability to earn M&S Loyalty points when you spend.
Those after more perks can try the M&S Premium Current Account, which costs £10 a month and offers £200+ of extra treats and vouchers throughout the year, the ability to earn loyalty points, exclusive access to preferential rates on M&S Bank products including the market leading 6% regular savings account and a £500 overdraft where the first £100 is interest free.
If you want to earn interest
If you do have a bit of money left aside each month, you might want to take a look at two accounts which are paying market-leading levels of in-credit interest.
The Nationwide FlexDirect account pays 5% interest before tax on credit balances of up to £2,500 for the first year you have the account. You need to pay in £1,000 a month to qualify.
The TSB Classic Plus Account also pays a gross rate of 5%, but on balances up to £2,000. The good thing about this account is that the rate is ongoing and you only need to deposit £500 a month to qualify for the interest.
These rates are miles better than the top easy access savings accounts right now.
Elsewhere Tesco Bank will pay 3% on balances up to £3,000 (and allows you to earn Clubcard points on your debit card spending), the Bank of Scotland Classic Current Account with Vantage pays 3% on balances between £3,000 and £5,000 and Lloyds Bank will pay 4% on balances between £4,000 and £5,000.
