Whilst cashback credit cards are not directly relevant to the Head for Points travel focus, we keep an eye on the market because it is the sensible thing to do. Miles and points from credit card spending are not free if you could be earning a cash rebate instead.
The axe is continuing to fall on cashback cards, in the same way as it is hitting miles and points cards. ASDA announced this week that the cashback rate on non-ASDA spending on its credit card will drop to 0.2% from April.
0.2% seems to be the ‘new normal’. M&S Money and Sainsbury’s pay the same return on their cards.
If you want a higher return, the best cashback (or pseudo cashback) deals are John Lewis / Waitrose and Amazon, both of which pay 0.5% in store credit on third party spending.
However, challenger back Tandem has jumped into the market with a hugely aggressive product offering 0.5% cashback and no FX fees. We are going to take a closer look at that over the next couple of days.
(Want to earn more miles and points from credit cards? Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)