Cash back from the banks

Posted by Anita Brook at 10:25 on 8 Jul 2010

• Print
• Share
• Comment

I don’t know about you, but my bank seems to take more money from me than I put in, with account fees and exorbitant overdraft charges. It doesn’t have to be that way. Many banks are now trying to attract our custom with free money and great interest rates, plus extra bonuses for good behaviour.
 
Here’s the best cash back bank deals currently on the market.

Good credit?
First things first, to get the best deals on the market you need a good credit rating, plus most accounts require you to deposit a certain amount every month. Make sure you check the small print before signing you life away as there are often nasty fees for those that don’t toe the line.

The top three deals

1.    Santander
The bank giving the most money away is Santander. Provided you earn over £14,700 a month, Santander’s new Preferred In-credit Rate account customers get £100 to sign-up and 5% in-credit interest on the first £2,500 saved for a year, so great for anyone whose good at keeping hold of their dosh – anything over this should be put in a savings account as interest goes down to 0% for extra funds.

To take advantage you need to use its ‘Account Transfer Service’ to move across direct debits and standing orders, plus pay in your salary. You should get the bonus within three months.

2.    Halifax
For those of you who are really good with your money and never go overdrawn, the Halifax Reward account pays a flat £5 for each month you deposit £1,000 for an indefinite period of time. If you sign up via Moneysupermarket, you’ll also get a free £50 within a month of switching.

If you do occasionally go overdrawn, give this account a wide swerve as the charges can be huge.

3.     First Direct
Deposit £1,500 for at least three months and you’ll get £100 bonus. So confident are they in their customer service that if you switch away from First Direct within a year they’ll offer a second £100. Make sure you don’t miss a deposit - if you do you’ll be charged a £10 fee.

The saying goes that it’s better the devil you know, but in the case of the banks, the devil you don’t might just offer something worth being tempted by.

• Previous entry