Barclays axes Blue Rewards monthly cashback – should you ditch it?
Barclays is overhauling its 'Blue Rewards' loyalty scheme for 100,000s of customers by scrapping monthly cash payments and adding Apple TV+ instead. The changes mean most should ditch the scheme from Wednesday 4 September. Here's what you need to know.
Many will have joined Blue Rewards in order to get the exclusive 'Rainy Day Saver' easy-access account that comes with it. That account pays 5.12% interest on up to £5,000. When it launched in 2022, it smashed the next-best rate of 2.5% and was popular with MoneySavers – yet these days the top standard easy-access savings pay 4.85%, and you can get up to 5% on smaller amounts.
Barclays is now shaking up its Blue Rewards proposition – here's what's changing:
NOT changing |
• £5 a month fee; |
Perks being REMOVED |
Ending on Tuesday 3 September: |
Perks being ADDED |
Available now: Available from Wednesday 4 September: |
Perks staying the SAME |
• Rainy Day Saver paying 5.12% AER variable on up to £5,000. If you factor in the now unavoidable £60 a year fee, this effectively becomes 3.83% on £5,000 saved (or even lower if you're saving less). You can currently get 5% on up to £3,000 with Santander-owned Cahoot, and at least 4.85% on bigger amounts elsewhere; |
Should everyone ditch Blue Rewards?
Most should from Wednesday 4 September. As shown above, the 5.12% saver isn't the runaway winner it used to be, while the temporary 1% debit card cashback can be beaten elsewhere – so these perks are unlikely to be worth paying £60 a year for.
However, if you really like Apple TV+ and can't get it cheaper, or you'd normally pay full price for Major League Soccer streaming, the revamped Blue Rewards is still a good deal, as you'll effectively be getting both at a major discount (with the other perks as a bonus).
What does Barclays say?
Barclays said it is making the changes in order to "reflect what its customers value". In 2022, the bank reduced the monthly cash payments paid to its Blue Rewards members, while in 2021 it forced users to register for online or app banking to remain members.
It adds that from March 2025, if you've activated at least one of the "core" Blue Rewards features – determined as the Rainy Day Saver, Saver, cashback, Apple TV+ – and you're not earning at least £60 in value over the year, your Blue Rewards membership will be automatically removed and you'll stop paying the fee.