A reward current account gives you something extra – cashback, interest, money, or other perks – when you meet certain criteria. Some charge a monthly fee, so the rewards might not be as generous as they first appear. The best one rewards you for what you’re already doing with your money – a little bonus on your everyday spending.
What is a reward current account?
Think of it as a current account that says thank you. In return for meeting some conditions – like paying in a set amount each month, or keeping a few Direct Debits active – you get something back.
How reward current accounts work
The conditions you might need to meet
Every account has its own rules. You might need to do things like:
• Pay in a minimum amount each month.
• Use the account as your main bank account.
• Have a set number of Direct Debits active
• Stay in credit, or keep your balance above a certain limit.
Monthly fees, and when they’re waived
Some reward accounts charge a monthly fee, and others waive it if you pay in a set amount. Zopa’s current account, Biscuit, doesn’t charge a fee at all.
What kinds of current account rewards can you get?
Cashback on bills or spending
Cashback pays you back a percentage of what you spend – for example, on household bills paid by Direct Debit or when you eat out. Our guide to how cashback on a current account works covers how it can be calculated, capped and paid.
Interest on your balance
Some current accounts pay interest on the money sitting in your account, sometimes up to a balance limit. Biscuit, for example, pays interest on your balance as standard – no cap – and you can choose to earn extra interest as your benefit, if you like. It’s a good idea to compare current account interest rates to see what’s on offer at different high street banks and building societies.
Fixed monthly cash rewards
Some accounts pay you a flat amount each month if you meet the conditions. As rewards go, this one is nice and easy to get your head around, because you know exactly what you’ll get each month.
Lifestyle perks and packaged benefits
Packaged accounts charge a monthly fee for extras like travel insurance, breakdown cover or mobile phone cover. They could be good value if you’d buy that kind of insurance anyway, but not so great if you wouldn’t.
Access to linked savings accounts
Some banks give their current account customers access to savings accounts with better rates. We delve into how that works in our guide, “Do banks offer better savings rates if you have a current account with them?”
One-off switching bonuses
Switching bonuses are one-off payments, separate from ongoing rewards. Head to our guide on whether it’s worth switching current accounts for more info.
Tax on your rewards
Interest counts as savings income, so it can count towards your Personal Savings Allowance. Tax on cashback might be treated differently.
Free vs fee-paying reward accounts: what you really earn
The sum is simple:
Annual reward – annual fee = what you actually earn
Here are two examples (illustrative figures, not based on any real account).
| Account A (free) | Account B (fee-paying) | |
| Monthly fee | £0 | £4 |
| Monthly reward | £2 | £8 |
| Reward if you qualify all 12 months | £24 | £96 |
| Net value after fees | £24 | £48 |
| Net value if you miss 6 months | £12 | £0 |
Account B wins when you qualify every month. But its fee never goes away, so you need to qualify in at least 6 months out of 12 to break even (£48 ÷ £8). Miss a month and you lose the reward but still pay the fee. If your income or Direct Debits vary, the free account might be the safer bet.
Would I benefit from a reward current account?
If your household has several Direct Debits, earning cashback on them could work well because the bills are going out anyway.
Keep a steady balance? Interest lets that money work for you without you doing much at all.
Eat out a lot? Rewards tied to spending money at restaurants could be a tasty bonus.
Paid a regular salary? Fee waivers and fixed monthly rewards are easier to hold on to if you can reliably meet a pay-in.
Who might be better off without one
A reward account might not be the right fit if you’d have to change how you bank to qualify for the rewards. It could also be tricky if your income is irregular, or pointless if you’d pay for perks you’d never use. In those cases, a simple free account may suit you better.
Is a reward current account worth it?
A reward current account is worth it if the reward you’d realistically earn is more than any fee, and you’d meet the conditions without much effort. Work it out using a typical month, not your best month. Three quick questions to ask yourself:
What are the exact conditions, and which do I already meet?
What would the fee cost me over a whole year?
Could a free account earn me nearly as much?
How to choose the best reward current account for you
There’s no single best reward current account – the right fit for you depends on how you use your money. Rather than chasing a headline figure, check:
whether the reward type matches your spending
the net value after fees
whether you’d meet the conditions anyway
any caps on what you can earn
whether you can change reward if your life changes
how good the banking app and customer service are
Of course, picking a bank account is about more than the rewards. For the full process, read our guide on how to compare current accounts. For an impartial starting point, MoneyHelper has a guide on choosing a bank account.
How Biscuit’s rewards work
Biscuit is a reward current account with no monthly fee and no minimum pay-in. It includes a few perks as standard, including interest on your balance, a free drink every month from Caffè Nero, and fee-free card spending abroad*. You also get to pick one extra benefit, which you can switch every month if you like.
format_quoteMost banks will give you a whole list of benefits, but what we found from talking to people is that doesn’t feel rewarding – most of them just aren’t relevant to them. Relevance is way more important than quantity. Giving customers the flexibility to choose the benefits that fit their needs is far more powerful than offering 20 things they’re unlikely to use.
Laura Sellman
Lead Product Designer at Zopa
Choose from:
Extra interest on your balance: earn 2.75% AER** (2.72% gross***) variable on your current account balance.
Cashback on Direct Debits: get 3% cashback on up to £150 of Direct Debits each month.
Cashback on eating out: get 3% cashback on up to £150 spent at restaurants, takeaways and bakeries each month.
Variable means the rate can go up or down. Find out more about Zopa’s Biscuit bank account.
*Card transactions are converted using the Visa exchange rate, with no added markup.
**AER stands for ‘annual equivalent rate’. We pay you interest on a monthly basis, but AER shows you the rate you’d get if this monthly interest was compounded and paid once a year instead. We provide an AER to make it easier for you to compare our rates with other providers.
***We pay gross interest, which means nothing is deducted for tax.
UK tax residents only, aged 18 and over. T&Cs apply. zopa.com/bank-account
Frequently asked questions
What are the best rewards for current accounts?
There’s no single best reward, because it depends on how you use your account. Cashback suits households with big Direct Debits, interest suits people who keep a balance, and perks only pay if you’d use them. Think about what you spend most on, then match the reward to it.
Do current accounts give interest?
Yes, some do. Interest is a popular bank account reward, though some accounts only pay it up to a balance limit. With Biscuit, you can choose interest on your balance as your benefit, at 2.75% AER with no balance cap or limit on what you can earn.
Which banks offer truly free accounts?
Many reward accounts charge a monthly fee, or waive it only if you pay in a set amount. Some digital accounts, like Biscuit, are fee-free with rewards included. Our guide to free current accounts explains what to look for.
Which debit cards offer the best rewards?
Debit card rewards come through the current account, so compare the account’s reward rules. That might mean cashback on bills or eating out, or interest on your balance, depending on the account. Check the conditions, caps and any fees before you decide.
How to get free money on a current account?
The ‘free money’ is either a one-off switching bonus, which might come with conditions, or ongoing rewards like cashback or interest. A bonus pays once, while rewards keep paying as long as you qualify. Read “Is it worth switching current accounts?” for more about switching offers.
Open your Biscuit current account
It only takes a few minutes to open your Biscuit current account and choose your benefit. Download the Zopa app to get started.
