Cash-back debit card launched by Halifax

A debit card that gives consumers back in cash one per cent of the value of everything they buy, is being launched by the Halifax.

10:49 15 December 2004

A debit card that gives consumers back in cash one per cent of the value of everything they buy, is being launched by the Halifax.

Launching in February, the Moneyback current account, gives up to 100 back to customers automatically, tax-free, once a year.

Cash-back deals have been available on credit cards for some time, with Nationwide offering an unlimited one per cent cash-back deal for the first nine months on its card.

But the offer of cash-back on a current account is a genuinely new development in the UK market.

Halifax's household expenditure survey found the average UK household spends more than 16,000 a year on things like food, clothing and holidays. These items, if bought with the Moneyback current account debit card, would all qualify for the one per cent cash-back deal.

The account is available to anyone who pays in more than 1,000 a month. After the first 10,000 is spent through the account all subsequent transactions are paid cash-back at 0.1 per cent.

However, cash withdrawal, bill payments and foreign money/travellers cheque orders will not qualify for money back.

"Moneyback is a genuine first in the UK banking market. The Moneyback account is a simple, value for money product that we know will appeal to the many UK consumers fed up with the poor deal they get from the Big Four banks," said Andy Hornby, chief executive HBOS Retail.

"Value for money is here to stay and the Big Four will just have to get used to that uncomfortable reality. We aim to make life even harder for them next year when we back the launch of Moneyback with a new high profile advertising campaign."