Lloyds Bank has expanded its cashback scheme to reward customers for taking out Direct Debits with selected companies.

Everyday Offers already allows customers to earn up to 15% cashback by using their debit or credit card to make purchases.

Now they can also benefit from a one-off cashback payment by setting up a Direct Debit.

There are currently only two companies taking part in the Direct Debit part of the scheme – EE and the Financial Times – but other retailers are expected to join in the coming months.

Lloyds customers signing up for a mobile contract with EE via Everyday Offers will need to activate the offer either online or through the app.

Once the second monthly payment has left their account, they will automatically be credited with £50 cashback.

Costa is among the retailers signed up to the Everyday Offers cashback scheme

Customers taking advantage of the Financial Times offer will get £30 cashback after their second Direct Debit payment.

Bank of Scotland customers using Everyday Offers and Halifax customers using Cashback Extras will also benefit from the new incentive.

The three banks paid out more than £1m to customers in June and more than £7m throughout 2016.

Our customers are receiving millions of pounds each year in rewards

Emma Greenwood, head of personal current accounts, Lloyds Bank
Atom 250 lives here

Emma Greenwood, head of personal current accounts at Lloyds, said: “We’re thrilled to be offering our customers even more ways to earn cashback on their everyday spending, not only through cards, but now for Direct Debits too.

“Our customers are receiving millions of pounds each year in rewards. I’d encourage everyone to get online, activate those offers and keep an eye out for more Direct Debit deals coming soon.”

Lloyds customers need to register via online banking in order to take advantage of Everyday Offers.

Individual offers can be activated either online or via the Lloyds mobile banking app.

Retailers participating in the scheme include Morrisons, Ocado, New Look, Pets at Home, Costa, Just Eat, Prezzo and Hilton.