21 Nov 2019
A revamp of NatWest and RBS Reward accounts will see customers lose out on the 2% cashback they currently receive when paying their household bills.
The Reward, Reward Silver and Reward Platinum accounts offer customers 2% cashback on direct debits paid for seven types of household bills: council tax, gas, electricity, mobile contracts, landline, TV and broadband.
As of February 2020, the cashback scheme will be scrapped, making way for a less generous incentive.
Both of the high-street banks are offering a £150 current account switch bonus. However, the changes could leave existing Reward account customers out of pocket. After the changes, customers with a regular, silver or platinum account will be entitled to a maximum monthly reward of £5.
This will bring the annual total cashback for a typical household down from £58.80 to £36 after account fees, based on a £345 spend on seven household bills.
Despite a reduced amount of cashback overall, account holders will still benefit from 1% cashback from purchases with partner retailers, which include ATG Tickets, Caffe Nero and P&O Ferries.
RBS, which was voted ‘Britain’s worst bank’ in a Competition and Markets Authority survey earlier this year, said:
“We are changing our Reward accounts so our customers will know exactly how much they will receive each month. Interest rates are expected to remain lower for longer.
“This change ensures we can continue to offer our customers a monthly reward.”