Amex to slash credit card cashback rates
The cashback reduction takes effect for new customers from today and from 4 August for existing customers.
The move affects customers with either the Amex Platinum Everyday or Platinum Cashback credit card. Some will earn up to £50 less in cashback each year.
If you have an Amex Platinum Everyday credit card, you currently earn 0.5% cashback on spending from £0 to £5,000 a year.
At the moment, spending of more than £5,000 a year will earn you 1% cashback, but from 4 August you’ll need to spend £10,000 to start earning 1%.
You must continue to spend at least £3,000 each year, starting on the date of your account being opened, to get any cashback at all. The introductory offer of 5% cashback for the first three months (capped at £100) hasn’t changed.
If you have a Platinum Cashback credit card the lowest rate of cashback will be cut. This means if you spend less than £10,000 a year you’ll earn 0.75% cashback, down from the present rate of 1%.
The top cashback rate of 1.25% for spending more than £10,000 remains unchanged. The £25 annual fee and APR of 27.3% remain the same, while the introductory offer of 5% cashback for the first three months (capped at £125) hasn’t changed.
The reduced cashback rates mean that some Platinum Cashback cardholders will earn £50 a year less in cashback based on the same level of spending. For example, someone with a Platinum Cashback card who currently spends £20,000 a year currently earns £225 in cashback – this will reduce to £175.
Do Amex credit cards still offer a good deal?
Despite the reduction in cashback rates, both Amex credit cards are still best buys, largely due to the 5% introductory bonus rate in the first three months.
According to calculations by MoneySavingExpert.com, if you spend less than £10,000 a year, the Everyday card is best after year one as the Platinum Cashback’s £25 fee means you’ll be worse off despite the higher cashback rate.
If you spend more than £10,000 a year, you’ll earn more cashback from the Platinum Cashback card, even with the fee taken into account.
The golden rule with cashback credit cards is to always repay your balance in full each month.