Cashback offers on bank accounts

What is a cashback 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.

Types of bank account cashback offers

The two main types of cashback offers on bank accounts are:

A welcome cashback offer: This is some money back into your account when you open the account as a new customer. It's a one-off cashback offer as an incentive to pick the account. You often need to have the account open for a couple of months to get it.

An ongoing cashback offer: This is a cashback offer that you can get ongoing, for example as part of your everyday spending. This will help you earn smaller amounts however because it's available ongoing you could end up earning more money in cashback.

I get cashback with ING

"I use the ING Orange Everyday bank account which offers 1% cashback on my utility bills. That 1% might not seem like much, but it does add up over the course of a few years - especially with electricity bills being so high lately. And it's free money which is always better than nothing! "

Alison Banney

Editorial Manager, Money

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 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.
3. You understand the caps and limits to the cashback (for example, is there a maximum amount you can earn each month?)

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

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 660 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living

Co-written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 688 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips