Make cash on your household bills
Household bills are a pain in the booty - especially when you are dealing with the admin of a separate bills account, spend more than you would like to and stomach more direct debits than hot dinners every month. If you are highly organised with your bills and don’t rely on the old overdraft, I could have just the thing for you.
Here are 5 things to note about the Natwest Reward Current Account:
1. What does this current account do? You can earn 3% in rewards on 7 types of household bills, only if you pay them by direct debit. You can also earn extra rewards by using your debit card at partner retailers (at least 1%). As soon you hit the equivalent of £5 or more, you can swap the them for cash (5 rewards = £5 in cash). This gets transferred into your Natwest current account, or you can use it to reduce your credit card balance on their specific ‘Reward credit card’. How very Natwest-centric!
2. What bills can I earn rewards on then? Council tax, mobile & landline, TV package, water, gas, electricity and broadband. Click here to use Natwest’s supplier eligibility tool – check whether your supplier for gas or electricity, for example, is on their official list. Payments for things such as car and home insurance will not count, whilst millennial staples of TV-license, gym membership or Netflix direct debits do not qualify either!
3. Do I have to exchange the rewards for cash? Well, if ££ doesn’t tickle your fancy, you can swap them for gift cards. Natwest also offers you the opportunity to use rewards as a way to give back to participating charities. We all wish we could give more to certain non-profits that are close to our hearts and our household bills could be a gateway for this.
4. There is no such thing as a free lunch though, right? Correct, this costs you £3 a month, so direct debits must be more than £100 a month for you to at least break-even. Natwest’s number crunching shows customers earn on average £120 a year in rewards (excluding the fee). What could you earn? Click here and find out. Remember, there is no cap on the cashback you can earn, so try bundling qualifying direct debits together to really maximise the gains. For example, paying your partner’s mobile phone bill via this current account.
5. Are there any alternatives? Notably, 3% rewards on household bills via direct debit are also available on Natwest’s Reward Silver, Reward Platinum and Reward Black current accounts. They offer different benefits and features, however, a key difference is that their monthly fees are £12, £18 and £28 respectively. Nonetheless, there are plenty out there if Natwest isn’t your bag. For example, Santander’s 123 account provides cashback on selected household bills, whilst pays interest on balances up to £20,000. If you have fewer monthly direct debits, TSB’s classic plus account is another fan favourite, also offering cashback if you make 20 debit card transactions in a month - this includes Apple pay transactions. As always do your research and don’t forget to read the fine print.
Other things to note:
Ø Those looking to simultaneously earn interest on balances can think again. The Natwest Reward Current Account does not favour savers, meaning there is zero in-credit interest.
Ø If you have the millennial habit of going into your overdraft…beware! Post the £10 interest free buffer, this account slaps you with a £6 a month fee plus interest charged at 19.89%. Sinking into the red for too long can leave you singing ‘bye bye bye’ to rewards earned (yes I just quoted N-Sync).
The allure of cashback can be tempting, however, is earning free cash for switching accounts more beneficial to you? Does a 0% overdraft hit the nail on the head, or is an insurance bundle with your current account what you really desire? Before you sign on the dotted line, understand your suitability and note your financial goals.
Updated on 6 March 2017