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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? – September 2021 update

If you are looking to apply for a new credit or charge card, here are our September 2021 recommendations based on the current sign-up bonus

You can see our full directory of all UK cards which earn airline or hotel points here.

The following offers will expire on 2nd November 2021:

  • 10,000 Avios on British Airways American Express
  • 40,000 Avios on British Airways American Express Premium Plus
  • 60,000 points on The Platinum Card from American Express

Here are the top current deals:

British Airways BA Amex American Express card

British Airways American Express

10,000 Avios for signing up, no annual fee and an Economy 241 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

40,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

Nectar American Express

American Express Preferred Rewards Gold

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

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Virgin Rewards Plus credit card

Virgin Atlantic Reward+ Mastercard

15,000 points bonus and the most generous non-Amex for day to day spending 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.

American Express Business Gold

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

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

60,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company 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 Credit Card

1% cashback and no annual fee Read our full review

Comments (62)

  • TGLoyalty says:

    If you have a small business consider the fact the 1% cash back is a rebate that has to be declared in your accounts and therefore taxable (still better than 0.42% ofcourse)

    Get a points card that’s out of scope of tax.

  • Ls says:

    Remember the 2.95% non sterling charge for foreign transactions

    • John says:


      • Ls says:

        True. They charge beyond £500 and you lose s75 protection. And if it refunds you are stuck with it in curve cash. So overall only useful for small purchases.

        • TGLoyalty says:

          What are you buying abroad that requires s75 protection?

          • LS says:

            Flights, hotels, car hire, tangible goods. Take your pick. Any of them go bust? Not provide what you paid for? Airline just stopped flying and you need to get home, and the same flight now costs 10x more? All covered under S75.

        • Rui N. says:

          I just got 2 refunds this week and they went to the original card. Which was a shame to be fair, I’d rather have the points.

        • John says:

          No, refunds go to the original card at the same exchange rate as the purchase so you don’t lose out (or gain, but the gain would need to exceed the 3% fee to be worthwhile)

        • VerdantBacon says:

          Refunds do not go back as curve cash

  • Tarmohamed says:

    Working on a new project and most suppliers do accept PayPal. Should I go for the Barclays Credit Card mentioned above, or use my Amex?

  • Holgs says:

    Shame no one mentioned the free HSBC Premiere CC which I think is a good product as well.

    • John says:

      It was mentioned

    • CarpalTravel says:

      After the utterly awful, anything but-premier experience I just had with HSBC and their Premier account, I’d suggest steering well clear of them. Locked out of my own account I even found out that their in-branch staff lied to me. Some points just aren’t worth the bother.

      • Ls says:

        When you do a formal complaint, they are brilliant at handing out £££ (yes mid three figures) for things like this. I basically mind a lot less when they pay me for fighting their own system. But agree – very below premier experience.

  • mark2 says:

    Isn’t this the card which replaced the Lloyds Avios card a few weeks ago?

  • jil says:

    Does Lloyds charge interest when top up Revolut?

  • Brighton Belle says:

    There were stories on HFP recently that Lloyds can take exception to how you use their cards and shut you down. Since Lloyds and Halifax are related you might find other cards and accounts you hold unexpectedly impacted.

    • Andrew says:

      If you misbehave with Lloyds or Bank of Scotland (including their white label Halifax brand) the consequences will be group wide.

  • Bill says:

    I’ve got one of these card. The terms have been updated. Looks like a crackdown on revolut etc

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