NatWest and RBS scrap cashback on bills – does it affect you?

4 min Read Published: 22 Nov 2019

Natwest and RBS

NatWest and RBS reward current account customers currently receive up to 2% cashback on household bills paid by direct debit. However, from 1st February 2020 NatWest and RBS are introducing a new scheme which sees customers receiving rewards in the form of payments instead of earning cashback on bills.

What is changing?

Instead of earning 2% cashback on up to 7 types of household bills customers will have the opportunity to earn rewards on a monthly basis instead.

If customers have 2 or more monthly direct debits (of at least £2 each) and log into the mobile banking app they will earn:

  • £4 per month for having 2 or more monthly direct debits
  • £1 per month for logging in to the mobile banking app

If you are a joint account holder, only one of the account holders can be nominated to receive the rewards.

The £2 monthly fee for holding a NatWest/RBS reward account remains.

Eligibility criteria for the NatWest/RBS standard reward account

The current eligibility to open a standard NatWest/RBS reward account is as follows:

  • Pay £2 a month to receive 2% cashback on household bills paid by direct debit
  • Pay in at least £1,500 in each month
  • Log in to online mobile banking each month

Here is an example of the current cashback you would receive based on receiving 2% cashback on a council tax and energy bill.

Monthly Annual Cashback
Council Tax £185 £2,220 £44
Energy Bill £100 £1,200 £24
Total £285 £3,420 £68

Once you deduct the £24 you will pay in monthly fees, you would earn £44 in cashback.

In February the eligibility will change to the following:

  • Pay £2 a month fee to receive a £5 monthly reward based on the following qualifying criteria
  • Pay at least £1,250 in each month
  • Have at least 2 direct debits (of at least £2 each) leaving your account each month
  • Log in to online mobile banking each month

Below is how much you would receive based on the new model being introduced in February 2020.

Monthly Reward Annual Reward
Council Tax £2 £24
Energy Bill £2 £24
Log in online £1 £12
Total £5 £60

As you can see, using the same example you would be £8 worse off per year. It does however depend which household bills you choose and how much you pay. If your two household bills come to more than £3,000 per year then you would be better off on the current model, if they come to less than £3,000, then the new model will suit you better.

How to switch bank accounts

NatWest and RBS are offering a £150 switching incentive if you switch using the Current Account Switching Service (CASS). You can switch bank accounts in 7 days and using the service means you won't have to do anything as it will all be taken care of for you.

  • You must switch to a NatWest Reward account by 6/12/19 (29/11/19 for RBS customers) and log in to online banking by January 2020

Find out more about switching bank accounts in our article - Revealed – Best bank accounts to switch to

What other banks offer cashback and rewards?

There are other current account alternatives to the NatWest and RBS rewards account which are summarised in the article below:

As well as reward current accounts you can also earn with these reward credit cards:

Looking for a financial adviser near you?

Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.

Alternatively, Hargreaves Lansdown, one of the UK’s largest firms providing restricted financial advice, is offering a £200 John Lewis voucher* to new clients.