Two major banks to cut cashback on reward accounts – will you be affected?

TWO major banks are cutting the amount of cashback they offer in a fresh blow to customers. NatWest and RBS Reward account customers will no longer earn £1 a month for logging into their mobile banking app from October 1. It means the amount of cashback they can earn with these accounts will drop from £36 a year to £24 a year. The NatWest and RBS Reward accounts charge a fee of £2 a month but you can earn £5 a month in rewards by jumping through a few hoops. Sign up for the Money newsletter Thank you! But from October 1 you will only be able to earn cashback by paying out two or more direct debits worth £2 or more each. You’ll still be able to claim these rewards as cash, a gift card or charity donation. Meanwhile, if you have a NatWest or RBS Premier Reward account then you will also lose the £1 monthly reward for logging into the app from October 1. You’ll still be able to earn £9 a month of cashback for having two direct debits worth at least £4.50 each. You’ll also still be able to earn at least 1% cashback when you spend with partner retailers. The account’s £2 fee will also remain unchanged. Most read in Money It’s worth shopping around to see if you can get a better deal. For example, Santander Edge customers can earn up to £10 cashback a month on selected household bills and fee-free spending when abroad. The account has a £3 monthly fee and you need to pay in at least £500 a month and have two active direct debits. If you claimed the maximum amount of cashback then you could earn £84 a year in cashback. If you swap to a Santander Edge current account by July 31 then you could also get a £180 switching bonus. Meanwhile, the free Chase UK debit card gives you 2% cashback on everyday spending up to £20 a month, or £240 a year. To be eligible you need to make at least 15 card payments a month with your debit card, credit card or direct debit and keep £1,000 or more across your Chase saver accounts all month. Comment now