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Is the new Lloyds cashback credit card the best on the market?

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Lloyds Bank launched the Lloyds Cashback credit card yesterday, a new free Mastercard.

Surprisingly (given that Lloyds Bank is not known for ‘best buy’ products) the Lloyds cashback credit card seems to be the best product of its kind out there.

It is worth a look if you can’t find any ‘miles and points’ Visa or Mastercard products to excite you. The official card website is here.

Lloyds Cashback credit card review

The only reason I am mentioning this card (we don’t get paid for promoting it) is that the current options for a rewarding Visa or Mastercard to use alongside an Amex are slim.

If you want travel rewards, your only options are, assuming you don’t qualify for HSBC Premier:

Of the non-travel rewards cards, all of the free options give you 0.25p per £1 spent or less.

This can either be in the form of cashback (Barclaycard Rewards) or store vouchers (John Lewis Partnership Card). Your return can get as low as 0.1p per £1 spent (Sainsbury’s Nectar Credit Card).

The Lloyds Bank Cashback credit card smashes the 0.25% cap for big spenders

This is what the new Lloyds cashback credit card, launched yesterday, offers:

  • no annual fee
  • representative APR 19.9% variable
  • £20 sign-up bonus if you spend £1,000 in your first three months
  • 0.25% cashback on the first £4,000 of annual spend
  • 0.5% cashback on all spend above £4,000 per year
  • cashback paid in a lump sum in January, added to your statement balance

This is quite a smart model, I think. By offering base cashback of 0.25%, the Lloyds Bank Cashback credit card instantly becomes equally as good as the ‘best of the rest’.

The more you spend above £4,000 per year, however, the more it pulls away from the pack.

Lloyds Bank Cashback credit card review

How do the numbers work?

This is how the maths looks on the Lloyds Bank Cashback credit card:

  • Spend £4,000 per year, get an average of 0.25% cashback
  • Spend £8,000 per year, get an average of 0.37% cashback
  • Spend £12,000 per year, get an average of 0.42% cashback
  • Spend £16,000 per year, get an average of 0.44% cashback
  • Spend £20,000 per year, get an average of 0.45% cashback

Whilst the Santander All In One Mastercard pays 0.5% cashback, the £3 monthly fee means that it NEVER becomes better value than the new Lloyds card.

For example, even if you spent £100,000 per year on the card, Santander would only get you £464 net of card fees whilst Lloyds Bank Cashback would get you £490.

There is one snag

The money you make on the Lloyds cashback credit card is based on your calendar year spending and, of course, it is now almost August.

This means that you will earn a lower average cashback rate in 2021. With only five months of the year to go, you won’t be spending much above the £4,000 level which triggers the higher 0.5% band.

In my example above for someone who spends £1,000 per month, they would – in 2022 – get an average cashback rate of 0.42%.

However, if you applied now and spent £1,000 per month you would only spend £5,000 in 2021. This means total cashback of £15 which is just 0.30%. You would have the £20 sign-up bonus though.

Got a small business?

If you are looking for a cashback card for your small business, ignore everything I have written above.

You are better off with the Barclaycard Select Cashback credit card. This is free and pays a flat 1% cashback.

Our review of the Barclaycard Select Cashback credit card is here and you can apply here.


In the past few days we have looked at aggressively good credit cards from Barclays and Lloyds, two organisations which you would normally link with second-rate ‘good enough’ products.

The Lloyds cashback credit card is a positive sign for the market and will hopefully spur other issuers in the reward space to up their game.

You can learn more about the Lloyds Bank Cashback credit card on its website here.

Want to earn more points from credit cards? – April 2024 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

British Airways American Express Premium Plus

25,000 Avios and the famous annual 2-4-1 voucher Read our full review

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

15,000 bonus points and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Business Rewards Visa

Huge 30,000 points bonus until 12th May 2024 Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

Barclaycard Select Cashback Business Credit Card

1% cashback uncapped* on all your business spending (T&C apply) Read our full review

Comments (62)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Rob Walker says:

    I wonder if paying my IHG card bill each month will fall under this..

  • Bob says:

    how does this compare if you also hold the mbna horizon card?

    • Andrew says:

      Doesn’t seem worth it as Horizon pays 0.5% back on everything, and one of the variants has 0% FX.

  • Ken says:

    No mention here of the House of Fraser Recognition card. It pays me 1.5% cash back on purchases in House of Fraser and 0.5% cash back everywhere else. It is payable in £20 House of Fraser vouchers (annually), but there is always something worth buying in that store. I don’t think this card is open to new customers, though. It’s my fallback card when I can’t use my Amex.

    • Gary_Dexter says:

      ” I don’t think this card is open to new customers, though.”

      I think you’ve answered why it’s not mentioned then…

    • sloth says:

      would prefer 0% cash back than spending money in an Ashley owned store

      • Andrew says:


        Buy new trainers at a branch of SportsDirect, where the staff live locally, have pretty good training, are patient with the kids, and have fairly generous bonus package.

        Or just buy online from Amazon.

        We all pick our battles.

      • cinereus says:


  • RTS says:

    The new virgin T&Cs come into play on 5th August… Let’s hope the gravy train doesn’t end.

  • Sam says:

    What about council tax bills?

  • John says:

    Depends on your valuation of HH points but yes slightly better for me, however I have the 0.5% extra rate for 3 months so will use lloyds until October

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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