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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 end soon:

  • 2,000 Virgin Points on Virgin Atlantic Reward Mastercard (ends 15th October)
  • 30,000 Virgin Points on Virgin Atlantic Reward+ Mastercard (ends 15th October)
  • 10,000 Avios on British Airways American Express (ends 2nd November)
  • 40,000 Avios on British Airways American Express Premium Plus (ends 2nd November)
  • 60,000 points on The Platinum Card from American Express (ends 2nd November)
  • 30,000 points on American Express Preferred Rewards Gold (ends 9th November)

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 – 30,000 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 credit card

Virgin Atlantic Reward Mastercard

The UK’s most generous free Visa or Mastercard at 0.75 points / £1 Read our full review

Virgin Rewards Plus credit card

Virgin Atlantic Reward+ Mastercard

30,000 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)

  • KBuffett says:

    This card may also offer AmEx style cash back offers, and perhaps this would be another positive.

  • NeilP1234 says:

    I have this card as Lloyds converted my old unused Avios MasterCard into this card recently.

    They wrote to me about two weeks ago asking me to activate a promotional offer of an Extra 0.5% cash back on ALL spend between August 1st and October 1st. This is in addition to the cash back referred to in this article.

    I have activated the offer and are putting all my spend through the card, including my normal Amex spend for a few months and will review my position at the end of the promotional period.

  • Tom says:


    Yes my Lloyds card sometimes rejects attempts at using it for online purchases. One time it was for a 4 quid charge! It works fine with PIN or contactless but I have stopped using it online .

  • Phil says:

    If I can’t use my Amex card I use my Tesco Mastercard to get Virgin Atlantic points. Surprised this card never gets mentioned here.

    • VerdantBacon says:

      Probably because earning 0.31 virgin points per £1 in only exactly multiples of £8 spend is not as good as earning 0.75 virgin points per £1

    • stevenhp1987 says:

      You’re better off with the free VS Credit Card if you’re only using the Tesco one for VS.

  • Ron says:

    Not sure if it’s targeted, but Lloyds launched a 0.5% bonus on spend from 30/7 to 30/10. That’s 0.75% on spend during offer period.

    • Toby says:

      How do you activate that? I called them to ask about it and they had no idea about it!

      • The Urbanite says:

        Think it is targetted, they send an email with a personalised activation link.

        • Toby says:

          Ok. Ta. I’ll keep an eye out…

          • Dubious says:

            Make sure you take a screenshot of the activation confirmation as I activated mine, onyl to be sent a reminder to activate some days later…

  • Dave says:

    Anyone else with the IHG card? I used to have one but cancelled it as it came with a £99 annual fee so not sure about the comment above calling it a free card ?

    • Dave says:

      Ignore more.. it is indeed now free, I’ll need to check when I can get one back again.

    • Peter K says:

      There were 2 versions, the £99 and the free one. The £99 version is no longer available to new customers. The card mentioned in this article is the free one.

    • TGLoyalty says:

      Huge mistake.

  • Will says:

    In case anyone cares, the Coutts debit card (and obviously credit card) gives reward points. It’s not a bad scheme either, and as you get the same points for debit card spend you can accrue on HMRC payments! Fairly easy to get 0.4p/£ spend.

    • Ls says:

      How much do you need to join courts again? £5mill as a new customer? I think I left my wallet somewhere…

      • JDB says:

        There is no set amount; case by case. My son who has only just finished as a graduate trainee has an account which is free until 26.

    • Jonathan says:

      Even though Amex Centurion was mentioned here a few weeks ago, it is an account for people who have serious money to burn, and the same goes for Coutts, they are not a bank that will accept anyone, they will look at you and after the initial check in having enough money, then they’ll ponder and decide whether they want you or not, and if they don’t want your custom they’ll turn you around

      In summary Coutts is not the type bank you can recommend that anyone applies for one of their products

  • Axel says:

    After pulling my teeth out for 10 minutes I managed to login to the app for this card.

    There are 16 offers. The only travel related one is 5% off at Butlins! These guys at Lloyds don’t mess about with their tempting offers!

    • Andrew says:

      I haven’t registered for it yet, but my colleague here has 20% at HIX on the new Barclaycard scheme.

      For LBG, I’ve got Apex, LNER, Butlins, Europcar, Europcar Flex. But have had better offers in the past.

      • Youllnever says:

        What’s this new Barclaycard scheme? Don’t think I’ve seen this anywhere.

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