Is cashback too good to be true? Deals can give you up to £10,000 on investments and pay out on shopping – but some could COST you
Products featured in this article are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.Shoppers are regularly bombarded with cashback offers that promise you can earn money while carrying out your everyday spending.These can range from a pop up that appears on your screen after you book train tickets online to your bank promising you can earn money just by paying your monthly direct debits.But while some of these are lucrative – paying out thousands of pounds in some cases – others are poor deals and could even leave you out of pocket.Others may require you to move a huge sum of money, to make the most of them. For example, investing platforms regularly offer bumper cashback deals and you could currently get £10,000 – but only if you move a pot worth £1million. We sort through the best cashback offers out there and explain how you can earn the most cash – and the offers you should avoid. Cashback could be a decent earner in 2026 – but you need to know the rules and stick to themWhat is cashback?Cashback is where you receive a financial incentive for spending money using a particular payment method, or for buying a specific product or service.It is paid by some banks and credit card providers to incentivise you to spend using their cards or current accounts, for example.Some financial firms pay huge sums in cashback if you open an account such as an Isa or self-invested personal pension with them.And some companies such as TopCashback and Quidco are standalone cashback companies that offer free money to customers for carrying out their online shopping.Cashback just for buying essentialsBanks including Santander, Nationwide and digital bank Chase pay cashback when you spend using the debit card they have issued you.They do this to encourage customers to sign up for their accounts. If you hold an eligible account, you may receive cashback automatically when you spend, or you may need to tell your bank that you would like to opt in.Chase is one of the most generous. It pays 1 per cent cashback when you use your debit card to buy essentials such as groceries, fuel and train tickets and other everyday transport costs.You can earn up to £15 a month in cashback, although that would require you to spend £1,500 a month on essentials. There is no fee to pay for holding a Chase current account.Nationwide offers new FlexDirect customers 1 per cent cashback on most debit card purchases for 12 months, but this is capped at £5 a month.Santander offers 1 per cent cashback on supermarket and travel costs, up to £10 a month – but only through its Edge Explorer account, which has a £17 monthly fee. You will need to weigh up whether the perks offered with this account – including the cashback – outweighs the monthly fee.Some banks offer cashback at particular retailers. You will typically need to opt in to these deals using the bank’s internet banking or mobile app. If your bank offers these, there is little downside to signing up – except that you will be sharing some of your spending data with them and the retailers.For example, the digital bank Monzo has limited-time cashback offers that you opt-in to through its app. It is currently offering 3 per cent cashback on spends of £100 or more at Currys – although offers are personalised and vary from account to account.Once you have opted in, you will receive the cashback automatically when you use your Monzo account to make a purchase at Currys. The cashback builds in a separate pot, which you can then move into your main account.Santander Boosts, NatWest MyRewards and Barclays Blue Rewards are all cashback schemes for current account holders.You typically need to opt in. For example, if you shop regularly at Asos, Caffe Nero or Greggs you could sign up to receive cashback when you spend at these retailers.Our verdict: If you already have an eligible current account, you may as well earn cashback where you can. You may be handing over some of your spending data, but it does not cost you anything to take part. Check what is available through your bank.However, some banks only offer cashback to holders of paid-for current accounts. It is unlikely to be worth paying for a bank account simply to benefit from the cashback deals available.The cashback deal from Chase is among the best because the account is free and the offer is not time limited.You can operate its current account alongside your main one, transferring money between them and shifting essential spending on to your Chase card to maximise cashback. Keep in mind that it’s app-only.Cashback on billsSome banks pay cashback on your regular direct debits.For example, Santander’s Edge accounts pay cashback on selected household bills, including payments to British Gas, BT and local councils.However, these accounts charge a monthly fee and have a minimum that you must pay in each month to be eligible:Edge costs £3 a month and pays 1 per cent on select household bills that you pay by direct debit, capped at £10 a month.Edge Up costs £5 a month and pays the same rate of cashback, only capped at a higher £15 a month.Edge Explorer costs £17 a month, also paying 1 per cent on selected bills, capped at £10 a month.At these caps and rates, you’d need to spend either £1,000 or £1,500 a month on bills to get the maximum cashback available through each account.The challenger bank Zopa offers a more generous 2 per cent cashback on direct debits, with no restrictions on the type of bill – but it’s only available on £1,500 worth of direct debits each year. This means the maximum cashback you’ll receive annually is £30.Our verdict: It’s unlikely to be worth switching to a particular bank account just to receive cashback on bills – you’ll need to look at your own spending to see how much you would make. However, they are a nice perk if you already have one of the accounts.Credit card cashbackSome credit card deals pay cashback every time you use your card.With strong introductory deals for new customers, American Express is a top pick.It pays introductory cashback at a rate of 5 per cent, up to a maximum of £125 – so you need to spend £2,500 during the introductory period of three or five months to get the top amount.American Express regularly offers even higher cashback rates for select retailers. You need to opt-in to through its mobile app to benefit.For example, it’s currently possible to opt in and receive 10 per cent cashback when spending at Moss Bros using your American Express card.The Amex Cashback Everyday Credit Card is an enticing option as it has no annual fee. It pays 5 per cent cashback up to £125 in the first five months. After that the cashback rate falls to 0.5 per cent on up to £10,000 and 1 per cent above that.The Amex Cashback Credit Card costs £25 a year to hold, but enjoys a higher regular cashback rate of 0.75 per cent on spending up to £10,000, and 1.25 per cent above that. If you’re a big spender, it might be worth forking out for the annual fee.Our verdict: Credit card cashback is most profitable if you’re eligible for the introductory deal as a new customer and will be spending big soon, for example by investing in a new laptop, booking a holiday or buying new furniture.You must pay off the balance in full each month to avoid hefty interest charges, which will easily outweigh any cashback you receive.You should also only apply for credit that you’re confident about receiving. You should be able to check your eligibility first without affecting your credit score.Cashback from savings and investing platformsIf you are considering moving your savings or investments to a different platform, you could make some serious cashback. The more cash you move, the more you could make.Investment platforms are making very generous offers to lure new customers – and they know that once you move you are unlikely to switch again in a hurry.The months leading up to the new tax year starting on April 6 are usually the best for deals, with savers and investors looking to maximise tax allowances – so now’s the right time to be looking.You’ll often see cashback offered in tiers. For example, £100 back when investing between £20,000 and £49,999, £300 back when investing between £50,000 and £99,999 – and so on.The investment platform Freetrade* has two good offers currently available – one for Isas and one for pensions – both paying 1 per cent back up to a maximum of £5,000.This means there’s potentially £10,000 available, but you’d need to shift £1million to the platform by April 5 – £500,000 into an Isa and £500,000 into a pension. You’ll need a minimum £10,000 needed to qualify per account.The trading platform IG* is currently handing out up to £2,000 when you transfer your investments to its Isa, self-invested pension or general account by January 30.At a rate of 1 per cent you’d need to transfer £200,000 to get the top amount. But even with a more modest £10,000, your pot would still get a £100 boost.Other popular platforms also have deals on:Charles Stanley Direct*: Between £300 and £1,500 when transferring your investments to one of its accounts. We like that this is an open-ended offer, with no set closing date. A minimum of £20,000 is needed to get £300, while £200,000 or more will bag you £1,500.Fidelity*: Between £300 and £3,000 cashback on investments made or transferred by April 5. Investing or transferring the minimum £50,000 will net you £300, but you need £1million to get the top £3,000.Interactive Investor*: Between £100 and £3,000 cash when investing in or transferring to its self-invested pension. You need £20,000 to get the minimum £100, while a whopping £2million is required to bag £3,000. The deal closes on January 31.Our verdict: There are a few hoops to jump through to qualify for this type of cashback, so you should scrutinise each offer’s terms and conditions carefully before going ahead. But with good amounts of money on offer, it can be rewarding to spend the time and effort.In many cases you won’t get cashback quickly, with platforms wanting you to stick with them for a good length of time before paying out. For example, if you qualify for one of the Freetrade deals, you won’t receive your cashback until December – and if you withdraw money before then, Freetrade calculates cashback on the lower amount.Don’t decide which platform to invest with solely based on cashback available. Make sure you pick the right account for you. For example, if you trade regularly but pick a platform that charges high dealing fees, these costs could vastly outweigh the amount of cashback you receive. Discover which provider could suit you in our guide to the best investment platforms.Cashback websitesStandalone cashback websites such as Topcashback* and Quidco* are among the easiest ways to earn free cash.These websites are hubs for cashback offers and deals, acting as a gateway to other online retailers. After signing up for an account, you’ll be able to check which offers are available, then click through to a specific retailer to complete your purchase.Cashback builds within your online account at the cashback website, which you can withdraw to your bank account.Our verdict: These websites are a good way to earn money back on a transaction you’re already intending to make online, provided you remember to check whether the retailer is available through the platform.Cashback websites can be lucrative when making large spends on travel or electronics, for example.Keep in mind it can take several months for cashback to be confirmed as payable to your bank account.Cashback on travelWhen booking train travel at websites such as Trainline* and National Rail, you may see a pop up inviting you to join a cashback scheme called Complete Savings.Be careful, because this is an online membership scheme that costs £18 a month, in return giving you up to 10 per cent cashback at more than 1,000 retailers.It works in a similar way to the cashback websites listed above, allowing you to search for online retailers that offer cashback available through the platform. Then you click through to complete your purchase.The money builds in your Complete Savings account, which you can withdraw to your bank after you’ve earned at least £5.Complete Savings is currently advertising 10 per cent cashback at retailers such as Anyvan, Clarins and Snow Rock.Ten per cent cashback means you’d need to spend £180 a month online to claw back the monthly membership fee, although Complete Savings may waive this fee by giving you a monthly bonus, provided you make a qualifying purchase and claim through the platform each month.Our verdict: You must read all the terms and conditions very carefully before using a scheme like Complete Savings, with plenty of hoops you need to jump through to make it worthwhile.It’s possible to get stung by paying the monthly fee, receiving nothing back in return.You’re probably better off checking whether the travel booking retailer is listed on cashback websites such as TopCashback and Quidco.SAVE MONEY, MAKE MONEY4.33% cash Isa4.33% cash IsaTrading 212: 0.73% fixed 12-month bonus£100 cashback£100 cashbackTransfer or fund at least £10,000 with Prosper4.49% cash Isa4.49% cash IsaIncludes 12-month boost for new customers£2,000 cashback£2,000 cashback1% cashback up to £2,000 when transferringSipp transfersSipp transfersGet between £100 and £3,000 cashbackAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
已发布: 2026-01-16 14:33:00
