Cash back offers: Bank accounts with cashbacks

What is a cash back incentive?

Cashback incentives are a way for banks, lenders and other financial providers to attract new customers. You can receive a cashback incentive for credit cards, transaction and savings accounts, home loans and financial package deals.

A cashback incentive is basically what it sounds like—you receive cash back into your account after you apply for a financial product and your application is accepted. Sometimes providers also waive fees or charges with these offers, making them even more attractive to new customers.

With some cards or transaction accounts you can earn an ongoing cashback based on your spending.

Credit cards with cash back incentives

Credit cards often have cashback incentives. They are sometimes offered in conjunction with low purchase rates, balance transfer rates or other discounted rates or fees. These offers are usually for a limited time only and require you to apply for the card by a certain date.

When considering these credit cards remember to check the fees and rates before you sign up. A good idea is to calculate the fees and interest you will be paying and decide whether the cash back offer is worth it. Remember to compare your options online before you settle on a card.

Home loans with cash back incentives

Home loan cashbacks can be some of the most generous cashback offers available. Lenders typically offer up to several thousand dollars to encourage customers to switch home loans.

There are usually eligibility criteria you have to meet, such as having a certain size of loan or a certain loan type. Home loan cashbacks are paid when the loan settles. You'll need a bank account with the same lender to receive the cash.

Are there any downsides or fine print I should worry about it with a cashback?

Cashbacks or rewards can be a nice perk for any financial product. But you should always read the offer details in full to make sure that:

1. You can actually qualify for the cashback.
2. This product is suitable for you and a good deal even without the cashback.

This last point is important. Don't let the cashback fool you: compare the product properly and make sure it's right for you. In other words, would you still consider this a good product without the cashback?

Frequently Asked Questions

• What does getting cash back mean?

  Getting cash back means receiving a percentage of your purchase amount returned to you, either as a statement credit or direct deposit, when you pay with a cashback-enabled card or through a cashback offer.

• How does cashback work?

  Cashback works by returning a portion of your spending to you. For example, if a card offers 2% cashback, you would receive $2 for every $100 spent. Cashback can be automatically credited to your account or accumulated for redemption.

• Is cash back free cash?

  While cashback may seem like free cash, it is essentially a rebate on your purchases. However, it often requires using a specific card or service, and some conditions may apply.

• Is there a downside to cash back?

  The downside to cashback is that it can encourage overspending to earn rewards. Additionally, some cashback offers come with annual fees or cards that charge interest rates that may outweigh the benefits if not managed properly.

• Can you lose cash back?

  Yes, you can lose cashback if you do not meet the terms and conditions, such as minimum spend requirements, or if you return the item for which you received cashback. Expiry dates may also apply to unused cashback.

• How to redeem cash back?

  Redeeming cashback typically involves logging into your card account or cashback platform and choosing to apply the cashback as a statement credit, transfer it to your bank account, or redeem it for gift cards or other rewards.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 626 Finder guides across topics including:

• Superannuation
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Co-written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 554 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips