Cashback
Imagine for everything that you bought, from your insurance to your weekly shop, that you would get money back for doing so. This is not a fantasy, but instead the beauty of cashback.
Cashback can come in various forms but the two main ones we will look at will be cashback sites and cashback cards. The two can even be combined to get you back even more of your purchases.
Online Cashback
You can get online cashback on almost everything from your broadband to your groceries.
Cashback sites are simply websites that reward you for going through their website to do your online shopping. It’s really as simple as looking for the place you want to shop, clicking the link to be taken to that shops website and just doing your shop as you would normally. In a matter of hours the cashback is tracked and you will be rewarded with cashback into your account based on your spend.
It’s free, it’s easy and it’s just a nice little gift for purchasing something you would have anyway.
What’s the best cashback site to use?
There are two main cashback sites that I highly recommend:
TopCashback and Quidco.
The two are very similar in function and reward level. I recommend getting both just to take advantage of the new member offers and in case one site has a higher rate or a retailer that the other may not. For more information and even a visual walk through of how the sites work just click on through to one of the following:
Cashback Credit Cards
You can get rewarded for each time you shop by using a cashback card.
Getting a cashback credit card rewards you for every purchase you make giving you a percentage of what you paid straight back in either cash or points.
The average weekly household spend in the UK in 2019 was £585.60 according to the ONS. If you were to place all of this spend on a cashback card giving 0.5% cashback you would get back £152.25 for the years spend.
What’s the best cashback card to get?
There are two main card types offering cashback. American Express (Amex) offers the best cashback rates but is not accepted everywhere (although more and more vendors are starting to accept it), whilst MasterCard cards tend to offer lower levels of reward but have the advantage of being accepted almost everywhere. It is recommended to have an Amex to use as your main cashback card and a MasterCard cashback card for places that do not accept Amex, this is to maximise overall cashback.
There is a special page that Cash of the Day has written up detailing the best cashback cards available at the moment and it can be found here:
+ Points to be aware of when using a credit card
- Much like any other credit card you must pay it off in full to avoid charges, it is highly recommended to set up a direct debit with your chosen credit card company to pay off the balance in full every month. Failing to do so can easily negate any gains from using the cashback card.
- Please be financially responsible and never spend more than you can afford to. Do not go past your given credit limit and ensure you have the funds to pay off the card in full each month.
- NEVER use any credit card for cash services. This can include ATM withdrawals, purchasing currency or even buying chips at the casino. You will face fees for doing so. Always use a debit card or cash when it comes to such transactions.
- Some cards, particularly American Express, may have minimum yearly spend on their card. This is where you need to spend a given amount on the card in the year to receive the cashback. If you do not think you will spend x amount then please look into a card with no/lower spend requirement.
Avoiding such matters will allow for you to spend as you would normally and get money back for doing so.