Almost two million Natwest and RBS customers will see the rewards cut on their bank account next month as part of a string of changes being phased in by the lender.
Natwest Reward customers can currently earn 2% cashback on seven household bills – council tax, gas, electricity, water, mobile, TV and landline packages, and broadband, if they're paid by direct debit.
However from 1 February 2020, customers will receive just £1 a month for logging into their mobile app, and £4 a month for having two direct debits of at least £2 each, instead of cashback on their utilities.
The changes mean the incentive will be capped at £5 a month, whereas currently cashback isn't limited.
"From February 1st 2020, we are making some changes to the way you earn Rewards through your Reward account," Natwest explained.
"Instead of earning 2% Rewards back on household bills, you will earn monthly Rewards for two or more Direct Debits paid per calendar month plus additional Rewards for a monthly login to our mobile banking app."
The £2 monthly fee will remain, so the max total reward will be £3 a month or £36 a year.
NatWest, which includes RBS, says its average customer currently earns £59 a year in rewards, so it's likely the majority of standard Reward customers will earn less under the new system.
However, the bank is not changing the terms of its partner retailer rewards – meaning you can still earn 1% cashback on brands such as Cafe Nero.
A NatWest spokesperson said: "We are changing our Reward accounts so our customers will know exactly how much they will receive each month.
"Interest rates are expected to remain lower for longer. This change ensures we can continue to offer our customers a monthly reward."
Royal Bank of Scotland and Natwest are are also due to hike overdraft fees to 39.49% from the end of March as part of new regulator guidelines.
They're the latest banks to announce rate rises, after HSBC and First Direct revealed similar changes in December.
Source: Read Full Article