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Halifax vs Competitors: Best UK Reward Current Accounts in 2026

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Categorized as Finance
Halifax vs competitors

If you still use the same bank you picked years ago, you could be losing out on big savings every month. Reward current accounts have changed a lot, and 2026 brings some strong choices. But the scene has shifted. Halifax, once a top name in reward banking, revamped its offer in mid-2025. Many account holders now ask: is it still worth it? How does it compare to the best options?

Here’s what you need to know.

What Is a Reward Current Account?

A reward current account is like a standard account. You receive your salary, pay bills, and use a debit card. But it also gives you rewards for meeting certain conditions. Those rewards typically fall into three categories:

  • Cashback on bills (e.g., energy, council tax, broadband)
  • Cashback on everyday spending (groceries, fuel, transport)
  • Fixed monthly perks (cinema tickets, streaming subscriptions, gift cards)

Most reward accounts charge a small monthly fee, usually £2 to £7. You often need to meet certain conditions. These could include a minimum monthly pay-in or a specific number of direct debits. The key question is whether the rewards are worth the cost.

Halifax Reward Account: What Changed in 2025?

Halifax’s Reward Current Account saw big changes in June 2025. Customers could pick perks. They included digital movie rentals, magazine subscriptions, or a £5 monthly cash credit. Now, those options are gone.

What you get now:

Conditions to qualify:

  • Make at least two direct debits per month
  • Pay a £3 monthly fee (waived if you pay £1,500 or more per month)
  • Maintain a balance above £0

The 3% AER interest is a decent return compared to many current accounts, but it trails well behind the best easy-access savings accounts on the market. The removal of the £5 monthly cash credit was a blow to existing customers who had relied on it as a simple, predictable reward.

Halifax Verdict: It’s a good choice if you travel often and want to spend abroad without fees. It’s also decent if you seek a small return on your current account balance. But it’s no longer the standout product it once was.

The Best Alternatives in 2026

1. Club Lloyds — Best for Lifestyle Perks

Club Lloyds has emerged as a top pick for 2026, and for good reason. Each year, account holders can choose one of several benefits:

  • 6 cinema tickets (Vue or Odeon)
  • 12 months of Disney+ (with Ads)
  • Other lifestyle rewards, such as magazine subscriptions or coffee shop vouchers

Those six cinema tickets alone are worth well over £60 at standard prices, making the maths work strongly in your favour. The account also gives access to a competitive linked monthly saver at 6.25% AER.

  • Monthly fee: £3 (waived if you pay in £2,000 or more per month)
  • Pay-in requirement: £2,000/month
  • Good for: Couples and families who’d pay for these perks anyway

2. Chase Bank — Best for Cashback on Spending (No Fee)

Chase is the standout option for anyone who wants cashback on everyday debit card spending without paying a monthly fee. New customers earn 1% cashback on groceries, everyday transport and fuel for the first 12 months (capped at £15 per month).

There’s also access to a competitive linked saver account with a boosted rate of 4.5% AER for the first 12 months for new customers.

  • Monthly fee: £0
  • Cashback: 1% on eligible spending (first year)
  • Good for: Everyday spenders who want free cashback without conditions or fees

3. Santander Edge — Best for Cashback on Household Bills

If your household bills are high, Santander Edge is a serious contender. It pays cashback on essential bills paid by direct debit, making it feel almost passive once set up. You also get access to the Santander Edge Saver at 6% AER.

  • Monthly fee: £3
  • Cashback: On eligible household bills and supermarket spending
  • Good for: Homeowners and renters with significant regular outgoings

4. NatWest Reward — Best for Predictable Monthly Cash

NatWest’s Reward account is simple and consistent. You earn £4 per month for having two or more direct debits active, plus £1 per month for logging into the mobile banking app — totalling £5 per month before accounting for the fee.

  • Monthly fee: £2
  • Net reward: Up to £3/month after fee
  • Pay-in requirement: £1,250/month
  • Good for: Those who want a predictable, no-fuss monthly cash reward

5. First Direct — Best for Linked Savings Rate

First Direct doesn’t pay an ongoing monthly reward, but it offers a switching bonus of £175 and access to a market-leading Regular Saver at 7% AER (fixed for 12 months, up to £300/month). For savers who want their current account to serve as a gateway to better savings rates, it’s hard to beat.

  • Monthly fee: £0 (with conditions)
  • Switching bonus: £175
  • Good for: Savers who can maximise the linked Regular Saver

Quick Comparison Table

Account Monthly Fee Key Reward Pay-In Required
Halifax Reward £3 (waived at £1,500) 3% AER + fee-free abroad £1,500
Club Lloyds £3 (waived at £2,000) 6 cinema tickets or Disney+ £2,000
Chase Bank £0 1% cashback on spending (Year 1) None
Santander Edge £3 Cashback on bills + 6% saver £500 spend
NatWest Reward £2 Up to £5/month cash £1,250
First Direct £0 7% Regular Saver + £175 switch bonus £1,000

How to Choose the Right Account

There’s no single “best” reward current account — the right one depends entirely on your habits and priorities.

  • You travel regularly: Halifax Reward (fee-free abroad) or First Direct
  • You want cashback on bills: Santander Edge
  • You want free cashback on spending: Chase Bank
  • You value lifestyle perks: Club Lloyds
  • You want simple monthly cash: NatWest Reward
  • You’re a disciplined saver: First Direct

One practical tip: many of these accounts are compatible with each other. Holding a Chase account for day-to-day spending, cashback alongside a Club Lloyds account for lifestyle perks, and a Santander Edge for bills is a legitimate and increasingly popular strategy — sometimes called “reward stacking.”

The Bottom Line

Halifax’s 2025 overhaul means it’s no longer the top-of-the-list recommendation it once was for reward seekers. The removal of the £5 monthly cash credit hurt its standing, and while 3% AER on balances up to £5,000 isn’t negligible, most dedicated savings accounts will beat that rate comfortably.

For 2026, Club Lloyds leads for lifestyle value, Chase for fee-free cashback on spending, and Santander Edge for bill-heavy households. If you’ve been with Halifax out of loyalty, it may be time to compare — switching takes less than seven working days via the free Current Account Switch Service (CASS), and your payments and direct debits move automatically.

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Amanda Mills

By Amanda Mills

I am a marketing communication and administrative professional with over 5+ years of experience. My experience encompasses strategic marketing, office administration, public speaking, blogging, and creative content.

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