Lloyds Bank has become the latest to introduce cashback on certain debit card purchases, but is its Everyday Offers scheme any good? And how does it compare to other current account switching incentives?
The provider's current account customers will be able to earn up to 15% off at selected retailers and restaurants such as Argos and GBK from the end of November, both online and in-store. (See our Best Bank Accounts guide for the top deals.)
However, it doesn't work automatically like normal cashback on a credit card, as you need to activate each deal. What's more, the list of retailers is small for now, while other providers are offering stronger incentives to switch to their current accounts.
Anyone with a Lloyds Bank current account who has registered for online banking can take part, although you'll need to have a Lloyds debit or credit card to gain any cashback.
Where can I earn cashback?
Retailers signed up to date are: Argos, The Body Shop, Coast, Domino's Pizza, Eat, Glasses Direct, Gourmet Burger Kitchen, Hertz, Homebase, Marriott, Morrisons, New Look, O2, Oasis, Ocado, Pets at Home, Play.com and Q-Park.
Lloyds says more retailers will be confirmed in the coming weeks.
How do I get the cashback?
Offers will appear in a cashback offers section in Lloyds' online banking. You'll need to activate individual offers there before you shop at that retailer, whether online or on the high street.
When you shop online or in-store, the deal you've activated will be automatically applied.
Each deal will last for a different period of time, and the cashback on offer will be up to 15%.
Exact deals for each retailer have yet to be announced. But what you're offered depends on your spending habits, so not everyone will get the same deals.
Once you've signed up for the Everyday Offers cashback scheme, you'll also automatically be included in the It's On Us offer. Here, 1,000 transactions of up to £500 will be randomly selected each week, and repaid to chosen customers. However, this is essentially a prize draw, and you may never "win".
How is the cashback paid?
The cashback will automatically be credited to your Lloyds current account at the end of the following month – whether you paid by debit or credit card.
So is it any good?
Lloyds Bank's Classic current account, which gives customers up to 3% interest on balances up to £5,000 when you pay in £1,000/month and stay in credit, isn't one of our best buys – so it's not worth switching to it purely for the new cashback deal.
Other current account providers have stronger switching offers. They include a free £100 and top customer service at First Direct, up to 3% interest on balances of £3,000 to £20,000 and up to 3% cashback on certain bills at Santander, and free travel insurance with Nationwide.
You can also earn more on a cashback credit card. For example, the Amex Express Platinum Cashback Everyday card has no annual fee and pays 5% for three months on up to £2,000 of spending. (See the Cashback Credit Cards guide for the best cards.)
Lloyds' sister bank Halifax runs a similar scheme to Everyday Offers, which has the same retailers signed up to it. It received a mixed response on our forum (see the Halifax unveils debit card cashback MSE News story).