You are here: Home - Saving-Banking - News -

Current account and credit card cashback less rewarding

0
Written by: Paloma Kubiak
21/11/2017
The cashback offered on current accounts and credit cards is tightening in the run up to Christmas, research reveals.

Interest-free deals on credit cards have been shrinking in the past six months, meaning shoppers have fewer options to spread the cost of Christmas. Data from Moneyfacts reveals the average 0% introductory purchase deal term has fallen from 381 in May to 349 now.

The number of 0% introductory purchase cards has fallen from 99 in November 2016 to 93 today.

There are also fewer cashback cards available, falling from 23 in November 2016 to 13 today.

Moneyfacts research also showed that cashback on current accounts is dwindling with NatWest previously paying up to 3% on utility bills (now 2%), Halifax current account switch incentive has fallen from £125 plus a further £5 a month reward to £75 and £3 respectively.

That said, there are still some ways for shoppers to make the most of spending, according to Rachel Springall, finance expert at Moneyfacts.

“Consumers can still get £185 in gift cards from M&S Bank if they switch to its current account and stay for 12 months. There’s also still American Express, which offers an Everyday Cashback Card paying 5% cashback for the first three months, plus a ‘shop small’ incentive for two weeks in December whereby shoppers can earn £5 when they spend £10 or more. Alternatively, customers could buy gifts through websites such as TopCashback to earn a little extra each time they shop.

“While the rewards continue to slim down and consumers’ bank balances shrink, it’s important for shoppers to start counting down the cost of Christmas, attempt to rein in their spending and seek advice if they are struggling to cope.”

The best cashback deals

The table below reveals Moneyfacts’ selection of the best cashback deals:

MoneyfactsCashback

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week