The banks that give you up to £160 for nothing

We regularly write about the benefits of using cashback credit cards wisely. But not everyone likes using a credit card to pay for their spending, and they have very valid reasons.

Indeed, recent figures from the UK Cards Association show that people shopping online last year were more likely to use a debit card than a credit card.

If you prefer to manage your money with a debit card, you can still earn some extra cash from moving to the right bank account.

Here are some top bank accounts that pay you for using them. Of course, pair them with a decent cashback credit card and you can earn even more.

[Earn £150 in three months with one credit card]

Santander 123 account

The Santander 123 current account offers money back in two ways. Firstly, if you have an in-credit balance you’ll earn up to 3%. It pays 1% on balances from £1,000 to £1,999, 2% on balances from £2,000 to £2,999, and 3% on balances from £3,000 to £20,000.

You can also earn some money back on your household bills: 1% on water, council tax and Santander mortgage repayments (up to a maximum of £1,000 a month); 2% on gas and electricity bills; and 3% on mobile, home phone, broadband and paid TV contracts.

To qualify, you must fund the account with at least £500 a month and set up at least two direct debits (although you'll want to set up all your eligible bills if you want to earn cashback on them). You’ll also be charged a monthly fee of £2, so make sure you’ll earn enough cashback to more than cover this.

Halifax Reward account

Halifax has just indefinitely extended its £100 switching offer for moving to its Reward current account. What’s more, you’ll earn £5 a month (an extra £60 over a year), providing you credit the account with £750 each month, pay out at least two direct debits per month and were in credit the previous month.

First Direct 1st account

First Direct offers new customers a £100 joining bonus if they open a 1st Account.

To qualify for the account fee-free you’ll need to pay in £1,000 a month. Alternatively, you’ll need to have another First Direct product – such as insurance.

Fail to keep up the minimum monthly deposit and you’ll be hit with a £10 monthly fee – so make sure you pay in the minimum £1,000 each month or the £10 charges will soon wipe out the £100 opening bonus.

The good news is the 1st Account has won several awards for customer service, including our own Lovemoney Award, and if you don’t like the bank and decide to leave after a year it will pay you another £100.

If you prefer to earn interest

If you do have a bit of money left aside each month, you might want to take a look at the Nationwide FlexDirect account. This is currently paying 5% before tax on credit balances of up to £2,500 for the first year you have the account. That’s miles better than the top easy access savings accounts right now.

You need to pay in £1,000 a month to qualify.

[Compare top bank accounts and start making more from your money]