best ways to get cashback
Follow these smart tips to pocket some free money.
We all want to get something for nothing. And by making a few little tweaks to the way that you manage your money you can do just that, pocketing a little bit of free money in the form of cashback.
Let’s take a look at some of the best ways to get your hands on cashback.
Cashback from switching current account
Moving current accounts can give your finances a pretty quick boost, as some banks will pay you a cash welcome fee.
For example, at the moment first direct will pay new account holders £100, with a second £100 payment if you aren’t happy with the account and decide to leave after you’ve been a customer for six months.
Usually you will need to be a customer for a couple of months, and carry out the switch using the Current Account Switch Service in order to qualify for these cash bungs.
Remember, it’s only worth moving to a current account that actually delivers what you need, as well as a cash welcome bonus. For example if you tend to rely on an overdraft, then you don’t want to move to a current account that charges massive interest rates when you drop into the red simply because it pays a switching bonus.
Check out our run through of the best current account switching bonuses at the moment.
Cashback on your direct debits
Some current accounts deliver cashback in a slightly different way, as you can get money back on the direct debits you pay through the account.
These tend to focus on regular household bills, like your Council Tax, water bill or mobile phone bill, with account holders being paid a percentage of the bill back.
These accounts can be an excellent way to get a few pounds back each month, but there are plenty of factors to bear in mind before you rush off to sign up for an account paying such cashback.
For example, the amount of cashback you can earn each month may be capped, which limits just how lucrative they end up being.
In addition, these accounts often charge a monthly or annual fee to account holders. As a result, it’s vital that you include these fees when determining which account to apply for, as these fees can erode the value of the cashback you build up.
We’ve crunched the numbers on the main cashback offers from current accounts so that you can get a good idea of which account may be best for you.
Cashback websites
Cashback websites are an excellent way to earn cashback when shopping online, and are incredibly easy to use.
If you know that you want to shop with a specific shop, then first you go to your chosen cashback site and see if they have a relationship with that retailer. If they do, you’ll be able to follow a tracked link over to the retailer.
You’ll then get a percentage of the money you spend back in cashback.
Basically, cashback sites are paid a referral fee by the retailers, and then pass a portion ‒ or even all ‒ of that referral fee back to you.
The big two sites are Quidco and TopCashback. Both have free memberships, but also a paid level of membership which comes with additional benefits which can include faster cashback payouts or higher rates of cashback.
It’s really important that you don’t get too distracted by the cashback on offer, and focus on spending as your normally would. For example there’s likely little point in buying an item from a more expensive shop simply because you’ll earn a slightly higher rate of cashback. Similarly you don’t want to end up buying something you don’t really need or want just because you can get some cashback.
Cashback from your credit card
The downside to cashback websites is that inevitably there will be some retailers who don’t partner with them. However, you can still earn cashback when you shop with those retailers by…
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