NATWEST and sister bank Royal Bank of Scotland are scrapping cashback on bills for roughly 1.7million customers next year.
Reward account customers currently earn 2 per cent cashback on household bills including council tax, energy, water and broadband, if they’re paid by direct debit.
1
But from February 1, the perk is being axed and instead customers will be given bonuses for logging into their accounts and by having direct debits.
Reward customers will receive £1 a month for logging into their mobile app, and £4 a month for having two direct debits of at least £2 each.
The changes mean the incentive will be capped at £5 a month, unlike the current cashback offer which is unlimited.
The £2 monthly fee will stay the same, so the max total reward will be £3 month or £36 per year.
The 1 per cent cashback perk on shopping at the banks’ partner retailers will also stay the same.
Meanwhile, customers with a Premier Reward and Premier Reward Black account will get £1 a month for logging into their mobile app, and £9 for having two direct debits of at least £4.50 each.
These accounts come with monthly fees of £20 and £31, and they require you to earn at least £100,000 per year.
How to switch bank account
NOT sure how it works? Here’s all you need to know and what you should check before:
- Under the Current Account Switching Service, swapping banks should take seven working days. That includes all your payments, direct debits and standing orders being moved too. Just open your new account and then ask your new provider to close your old account using the switch service.
- Make sure you are eligible. Most accounts have certain requirements, such as paying in a minimum amount of cash each month.
- Watch your overdraft. Check your new bank will offer you the same limit — and does not have higher costs for using it.
Currently, Reward customers need to spend roughly £250 a month (£3,000 a year) on eligible bills to receive the £36 cashback per year after the fee.
But NatWest and RBS say their average customer currently gets £59 a year in rewards after the fee.
In other words, it’s likely that a majority of Reward customers will earn less under the new system.
Although if you only pay a couple of bills per month by direct debit, or you have low bills, then the new cashback system may work out better for you.
In a separate change, Reward credit card customers at NatWest and RBS will have their cashback on spending slashed from 0.50 per cent to 0.25 per cent from February 1 too.
The banks wouldn’t confirm how many users these changes will affect when contacted by The Sun today, but it could potentially be thousands.
Since NatWest and RBS launched Reward in 2015, more than 1.7million customers have benefited from the perks.
If you’re keen to earn more cashback on your spending, then Barclays has doubled the rewards for users of its Blue Rewards bonus scheme so you can now earn £120 in 12 months.
We’ve also made a round-up of the best credit cards for cashback here.
A NatWest spokesperson said: “We are changing our Reward accounts so our customers will know exactly how much they will receive each month.
“Interest rates are expected to remain lower for longer. This change ensures we can continue to offer our customers a monthly reward.”
NatWest and RBS customers are being warned about scammers Which? found users are being targeted by fraudsters trying to steal cash.
In February, Nationwide axed debit and credit card cashback scheme for 400,000 customers.
By switching your bank account to NatWest you can get a £150 cash bonus, but you’ll get an extra £25 by moving it to HSBC.
