Barclays to axe bank account cashback reward for millions of customers next week
A POPULAR high street bank is about to ditch a loyalty reward for millions of customers as part of its huge “makeover”.
Barclays Blue Rewards customers have previously paid £5 per month in return for access to high-interest savings accounts and cashback.
They also received £5 per month back for having two or more direct debits.
But from September 4 – that’s five days away – the bank is getting rid of it’s £5 monthly loyalty reward.
Customers aren’t happy about the change, with one expressing disappointment, saying: “This felt like a real benefit as a Barclays customer and it’s frustrating that it will now cost money.
“It feels like a clever way of watering down the amount that I’m getting back from my savings.
“It’s made me think that I could switch to a different bank that won’t charge me to get those rates.”
However, Barclays said that after the change, Blue Rewards customers can receive fixed benefits worth up to £44 per month – an increase from £35.50 previously.
People can become a Blue Rewards member if they pay at least £800 into a designated account every month, in addition to a £5 fee.
The change also means customers will be able to access an Apple TV+ subscription, and watch Major League Soccer matches with an MLS season pass subscription during the season, as well as getting cashback and interest on savings.
Barclays has said it will conduct reviews to ensure Blue Rewards customers are getting a fair deal for their £5 monthly fee.
If customers aren’t receiving fair value, they will be notified and Blue Rewards and its fee will be removed, leaving customers on Barclay’s standard, fee-free account, the bank said.
Barclays is advising customers: “If you’re happy with these changes and still want to be a Blue Rewards member, you don’t need to do anything.
“If you feel Blue Rewards is no longer right for you, you can cancel your membership. If you’d like to cancel before the changes happen, you’ll need to do it in the Barclays app or Online Banking on or before 3 September.
“If you cancel before 5pm on the last day of a month, we won’t charge you the next fee.”
You can cancel by logging into the app, clicking on “rewards” and then “cancel Blue Rewards”.
Manuel Baldasano, head of customer and digital at Barclays UK, said: “We’ve been evolving Blue Rewards based on what we know our customers value and, with entertainment high on their wish list.
“Our refreshed Blue Rewards proposition, which sits alongside our fee-free account and premier banking, means that customers can choose what works best for them.”
It comes after The Co-operative Bank scrapped its Everyday Rewards scheme in May, which was a free programme for all Co-operative Bank current account customers.
What do other banks offer?
A few other banks, such as Santander, Chase, Halifax and Natwest, reward current account customers with up to £20 month in cashback.
Cashback accounts function by paying customers free cash if they prioritise using them as their primary bank account.
The amount you receive back could be calculated as a percentage of what you spend on bills, or be set and need you to make a specific 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.