Three banks that reward you

These three banks actually reward their customers.... imagine that!

Generally speaking, here at lovemoney.com, we say it’s always best to shop around when you’re looking for a new financial product and not to believe that being loyal to your bank will get you anywhere. After all, in many cases, the best deals are only offered to new customers.

However, it’s beginning to look like things might be changing, with more and more financial products being offered to existing customers only. Don’t believe me? Take a look at this little lot.

Rewards from Halifax

I have to admit I have banked with Halifax for several years now, partly because I used to work there, and I now have a range of financial products with Halifax.

Now you might think that’s not a very good example of shopping around. After all, I am putting many of my eggs in the same basket. But the good news is I am finally being rewarded for my loyalty – as a Halifax current account customer, I can now get better deals on both my savings account and my credit card.

Anyone who holds a Halifax current account gets a 0.2% bonus rate on the Halifax Web Saver Extra account which offers a very competitive interest rate of 2.80% (including the bonus). You can get the same rate from the AA, with its Internet Extra account, but if you ask me, the Halifax Web Saver Extra account is a pretty attractive offer. That said, the drawback to the account is that you can only make one penalty-free withdrawal per year. The AA account allows unlimited withdrawals.

Having a Halifax current account also means I can apply for the Halifax Rewards Clarity credit card. This card doesn't charge any fees when you use it abroad, unless most credit cards and debit cards. Plus you'll get £5 a month cashback as long as you spend £300 a month on the card. (Make sure you pay off your bill in full to get the full benefit of the cashback.)

It’s a pretty handy credit card to have in your wallet – particularly if you’re planning to go abroad soon.

The bonuses don't end there, however, because the Halifax Reward Current Account itself is a pretty great financial product to have anyway! Every month you pay £1,000 into the account you’ll be rewarded with £5 – whether you’re in credit or overdrawn. So it's a pretty competitive current account, with an array of extra benefits to boot!

Santander's top offering

At lovemoney.com HQ we’re regularly singing the praises of Santander's current accounts. That’s because Santander's preferred In-credit account offers a truly fabulous interest rate of 5%, providing you pay £1,000 into the account each month - that’s more than most savings accounts are paying these days. Meanwhile, Santander's preferred Overdraft account offers a 0% overdraft for 12 months, the best overdraft deal you can get.

But the extra advantage of applying for one of these accounts is that you’ll also be able to apply for the highly competitive Santander Super Fixed Rate Monthly Saver Account which offers a fabulous interest rate of 6% for 13 months!

In fact, this is very close to being the best regular savings account on the market. The only account that pays a higher rate is the HSBC Premier Savings Account which offers 8%, but you’ll have to pay for this account.  

The Santander Monthly Saver allows you to pay in between £10 and £250 a month.

So not only will you be getting a great deal on your current account, but you'll also get a great deal on your savings account.

Fabulous First Direct

First Direct is renowned for its excellent customer service. And if you’ve ever had to spend hours on the phone having strong words with your bank, decent customer service might be top on your list when you’re choosing a current account/savings account/credit card.

But as well as getting excellent customer service, if you switch to the First Direct 1st Account, you’ll be given £100 in cash, providing you pay at least £1,500 into the account each month. And if you decide you’re not happy with the service within the first year, you’ll be given another £100 to leave.

However, if you do decide to stay put with First Direct, your loyalty will be rewarded because you will be able to apply for a First Direct lifetime tracker mortgage. These offer some of the best rates around! Read The safest variable mortgage around to find out more.

The benefits of being a First Direct current account customer don’t end there, as you’ll also be able to apply for the First Direct Regular Saver Account which offers 5% for 12 months.

Although this isn’t quite as competitive as the Santander Monthly Saver, it’s still a good deal, and if good customer service is more important to you than an extra 1% in interest, this might be the place to go. Again, note that you won’t be able to withdraw your cash during those 12 months.

Of course, the three banks I’ve mentioned here are not the only banks to reward their customers for their loyalty. I’ve just pointed out three of my favourites. If you know of any others, please post them using the comments box below.

*This applies to online deals only. You can get 16 months interest-free on balance transfers with the Clydesdale and Yorkshire Gold credit cards, providing you apply at a branch, and not online.