SHAKE-UP Major high street bank with 2.6million customers axes rewards scheme on all current accounts

A MAJOR high street bank is axing its reward scheme next month.

The Co-operative Bank will scap its Everyday Rewards scheme in May.

The scheme will be scrapped for good on May 31
The scheme will be scrapped for good on May 31Credit: Reuters
Letters have been sent out to customers ahead of the change
Letters have been sent out to customers ahead of the change

The Everyday Rewards scheme is a free programme for all Co-operative Bank current account customers.

If you've previously opted in, you'll receive rewards for everyday banking.

You can earn up to £2.20 a month for free under the scheme.

Customers earn £1 each month if they meet the eligibility criteria and up to £1.20 a month when they use their debit card for everyday spending.It has been an easy way for customers to bag £26.40 a year.

Customers can choose to have this money paid into their current account or instead donate it to one of several charities including:

  • Refuge
  • Amnesty International
  • Oxfam
  • Hospice UK
  • Woodland Trust

However, from May 31, the scheme will close for good and all Co-operative Bank current account customers will lose access to Everyday Rewards.A bank spokesperson told The Sun: "Our Everyday Rewards scheme closed for new customers from March 26, 2024 and will close for existing customers on May 31, 2024.

"Customers opted into the scheme can continue to earn rewards up to and including May 31

"Since launching the scheme in 2016, our customers have enabled us to donate over £1.6million to our charity partners.

"We want to reassure customers that the closure of this scheme will not affect the support provided to these partners and that we remain committed to supporting both them and their causes."

To have been eligible for the scheme, you would have needed to hold one of the following current accounts:

  • Current Account
  • Everyday Extra current account
  • Privilege account
  • Privilege Premier account
  • Current Account Plus

Customers would also have been expected to pay £800 to their nominated account and payout at least four direct debits from the same account to qualify.

Commenting on the news of the scheme's closure, consumer champion, Martyn James said: "The competition between the smaller high street banks is cut-throat and challenging.

"Customers know that they can easily switch to another bank for a better deal.

"So the decision to end a reward scheme, just as others are ramping theirs up, will signal the perfect time for customers to look for better deals elsewhere."

Several other banks, including Santander, Chase, Halifax and NatWest, reward current account customers with up to £20 month in cashback.

Cashback accounts work by paying customers free cash if they prioritise using them as their main bank account.

The amount you'll get back could be calculated as a percentage of what you spend on bills, or be fixed and require that you make a certain number of purchases or pay out several different direct debits.

With Santander Edge, account holders can get 1% back on their water, energy, council tax, mobile, phone, broadband and paid-for TV bills, as well as 1% on most supermarket and travel spending.

This means customers can earn up to £10 a month for each, or a maximum of £20 a month.

But the exact amount of cashback you'll earn will depend on how much each of your bills are.

New Chase customers get 1% cashback (capped at £15 a month) on almost all spending for their first 12 months.

Switching bank accounts is easy with the current account switching service.

How do I switch bank accounts?

SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.

Under the switching service, swapping banks should take seven working days.

You don't have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.

Co-operative Bank will soon be acquired by Coventry Building Society, pending regulatory approval.

Coventry Building Society has agreed to pay £780million in cash for the bank.

Negotiations between the Co-operative Bank and Coventry have been ongoing for over three months before the deal was struck last week.

The acquisition has effectively restored the Co-operative Bank's mutual status and will create a financial powerhouse boasting assets of £89billion.

It follows speculation last year over a string of potential bidders for the lender, which has turned around its financial performance and recovered its profits.With its origins dating back to 1872, Co-op Bank currently provides banking services to about 2.6 million retail customers and more than 93,000 small and medium-sized enterprises.

Meanwhile, Coventry manages nearly £50billion worth of mortgages and more than £45billion in savings balances.

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