RBS and NatWest have launched a new cashback scheme that offers customers cashback when they shop using their debit card.
In a direct challenge to Santander's 123 account, the new Cashback Plus scheme - which both new and existing current account customers can apply for – offers shoppers the chance to get 1p paid back in cash for every £1 they spend.
The scheme launched with an initial list of 11 retailers, including Café Nero, H. Samuel, BP and Cineworld; while Tesco is also taking part in the scheme for three months until 30 November.
The banks state that once customers have earnt £5 in cashback, it can be paid into their current account or exchanged for gift vouchers. Alternatively, more philanthropic customers can choose to have it paid direct to a charity.
However, in order to be eligible for the cashback, customers must agree to receive "targeted offers from participating retailers which are relevant to them".
Cashback Plus is a challenge to Santander's 123 current account, which pays: 1% cashback on council tax bills, water bills and Santander's own mortgage payments; 2% cashback on gas and electricity bills; and 3% cashback on home phone, broadband, and TV packages as well as mobile phone bills.
See top bank accounts available to you today
However, while the new RBS and NatWest scheme is open to non-fee-paying customers, Santander's 123 account costs £2 a month and customers must pay at least £500 a month into their account.
More details can be found at: cashbackplus.natwest.com/ or cashbackplus.rbs.co.uk.