The best cashback credit cards and current accounts this Christmas
It’s harder than it once was for shoppers to get something for nothing. New EU legislation introduced last year capping credit card transaction fees resulted in a number of issuers scaling back or scrapping reward schemes altogether.
Santander is the latest to cut back its offering. It is capping cashback on its 123 Credit Card (which is no longer available to new customers) so that the most existing users will be able to earn a month once the £3 monthly fee has been deducted is £6. But these changes are not happening until February.
For people looking to open a new account, there are some good deals out there.
Barclays is trebling the rewards and cashbacks shoppers can earn until 30 November, if they switch to its Blue Rewards current account. This card comes with a £3 monthly fee.
Halifax is offering a £100 switching incentive, plus a £5 monthly reward and up to 15% cashback if you shop at certain retailers. The £5 payment drops to £3 in February.
American Express is still offering the Platinum Cashback Everyday Card, which pays 5% cashback for the first three months.
And ASDA Money’s Cashback Plus Credit Card offers 2% cashback on all in-store spending and 1% on all other transactions.
Rachel Springall, finance expert at Moneyfacts, said: “Over the years, rewards have become far less rewarding, showing that loyalty doesn’t pay. Indeed, it’s becoming increasingly more difficult for shoppers to get something for nothing, but customers can still earn a little back over the festive season by exploring cards and current accounts.”