NatWest is ending a cashback perk for standard “Reward” account customers later this year. From October 1, the high street bank will no longer give holders of these accounts £1 per month simply for logging into the mobile app. A spokesperson said the measure was intended to get customers engaged with digital and mobile banking, and the investment is better served elsewhere following widespread adoption.
As a result, the maximum annual cash reward you’ll be able to get from the accounts will drop by £12. The Royal Bank of Scotland (RBS), another NatWest Group bank, will also be implementing the change for its Reward accounts. In both cases the accounts charge a £2 monthly fee, but you end up in credit if you meet certain conditions. Account holders can earn £4 a month in Rewards by paying two or more Direct Debits of at least £2 each, and further Rewards “when you use your debit card to spend with our partners”, NatWest‘s website explains.
With the current £1 cashback on top that, it comes to £5 per month, or £36 per year (including the deduction of the 12 £2 monthly charges).
Without the £1 on top, the net yearly benefit drops to £24. However, from October 1 you will continue to be able to claim these funds as either cash, gift cards, or charitable donations, and partner rewards will remain.
MoneySavingExpert.com, which highlighted the reward change, noted that Reward customers will also still be able to benefit from spending without fees when they use their debit card abroad.
Both banks are also removing the £1 reward for logging into their ‘Premier Reward’ accounts from October 1, but the £9 cashback for at least two Direct Debits of £4.50 will remain in place, as will the 1% debit card spending cashback.
Premier Reward accounts also charge a £2 monthly fee.
A NatWest Group spokesperson said: “We regularly review our products and services to ensure they continue to meet customers’ changing needs and deliver strong overall value.
“As part of these updates which will take effect from 1st October, we’re introducing a range of new and enhanced benefits across our packaged accounts — including free overseas debit card spending for Reward customers, and access to services such as digital GP appointments, mental health support and physiotherapy — following extensive customer research.
“The mobile app reward was introduced to encourage digital engagement and mobile banking familiarity, but with the widespread growth of digital adoption we believe that investment is better used to deliver benefits customers have told us they value more highly.
“Our updated accounts represent increased annual value for customers who make use of the benefits available, including health, travel, insurance and lifestyle support.”