Britons who bank with Nationwide Building Society will now get 5 per cent cashback on their supermarket shopping.
From today until the end of April, the mutual will pay cashback on both online and in-store spending when using one of its debit cards at both large and small supermarkets.
The cashback is capped at £10 per calendar month, per card, meaning members will receive the monthly maximum by spending £200.
The offer will continue until 30 April or once £99million in cashback has been paid to members, whichever comes sooner.
It is available on all adult current accounts, including FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate and FlexBasic. However, cashback is not available on the FlexOne youth account.
Nationwide says its members will automatically receive the cashback payment into the account used to make purchases.
Those who have provided the Society with their mobile phone number will receive a text alert following the payment.
It’s worth noting that the cashback is not eligible for money spent in petrol stations, including supermarket-owned petrol stations and service stations.
Nationwide says its new cashback offer is aimed at supporting members coping with rising living costs.
Supermarkets are where the average person is doing most of their spending, according to its research.
Last year, members made more than 54million purchases a month, on average, amounting to around £1billion.
Tom Riley, director of retail products at Nationwide Building Society, said: ‘Food costs have risen sharply and many households now think carefully about how and where they shop.
‘We’re helping members with £10 a month cashback on supermarket spending – just one of the benefits of having a current account with the world’s biggest building society.’
Current accounts with the best cashback offers
Nationwide says the cashback will be available to new customers opening a current account while the offer is in place.
However, the fact that the offer ends on 30 April means that it may be of limited benefit.
Someone making full use of the cashback until the end of April could accrue a maximum of £30 during that time.
Someone looking for a more profitable cashback card might want to consider Santander’s Edge account.
To start with it is offering a £200 in cashback for simply switching. Joiners will need to set up two active Direct Debits, pay in £1,000 and log on to online or mobile banking to benefit.
It is offering cashback on both debit card spending and direct debits, with up to £20 per month available, although there is a £3 monthly account charge.
There is 1 per cent cashback on essential grocery shopping and transport-based debit card spending. This is capped at £10 a month.
There is a further 1 per cent cashback on household bills paid via direct debit, which includes council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages. Once again, this is capped at £10 a month.
However, to earn the £10 cashback in either case customers will need to spend £1,000 a month in each category. This may be a tall order for some.
The £3 monthly charge is also unavoidable, so potential switchers also will have to factor this in.
To be eligible for a Santander Edge current account, customers need to have a minimum of £500 credited into their account every month, and at least two active direct debits.
Another good option for anyone looking for a good cashback debit card is JP Morgan’s Chase, which launched in the UK in 2021.
This free app-based bank account offers a straightforward 1 per cent cashback on spending for the first 12 months, although there are some exceptions.
Someone spending £20,000 during their first year on this card could therefore earn £200 in cashback during that time.
Of course, cashback isn’t the only factor people should be looking at when considering a new bank.
There are plenty of other perks often on offer. For example, in-credit interest, exclusive linked savings rates, overdraft limits and other benefits such as free cinema tickets.
On top of that, and perhaps more importantly for some, there is the bank’s customer service to consider.
To help you decide, check out This is Money’s review of the best current account offerings available right now.