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Forums Payment cards Capital on Tap Jeeves Vs Capital On Tap

  • VikasG 12 posts

    Hi all I have been using Jeeves for a few months now and though for those that use capital on tap you might want to consider Jeeves.

    It’s 1% cashback on first £20k per month then 2% on everything else.

    No way to get any miles yet from it but it’s a much better rate than CoT for those spending £20k+ per month. No annual fees and £250 sign up bonus

    The only downside I have is that the credit terms are not as generous. Payment for last month is due first week of next month so at most around 37 days interest free credit not 56 days as per normal cards.

    Facebook and Amazon (as well as a few other sites) get you 4%.

    Sometimes they run promotions to boost cashback for example in December it was 3% and I could pay my hmrc with it and still make 1% (after factoring in the 1.9% HMRC fee).

    For me it’s been really good and I have started using this much more than CoT. However CoT is great if you need the extended credit so I do still use it when I need too.

    I also like you can create a virtual card within seconds and use a new card for a supplier and set a spend limit or turn it on / off in the app.

    *I have put a referral link above which you can remove if needed but then you won’t be able to get the £250 sign up bonus. Apologies if this breaks any rules.

    The Savage Squirrel 595 posts

    I looked at it and, to be honest, my issue at the time was how short the site was on detail; it didn’t even really explain what the product was! So it just failed the smell test. I see they’ve rectified that somewhat with a blog. If you’re a smaller spender and cashback goes into the P/L account and so attracts tax then it’s in reality 0.5% cashback (assuming 50% personal tax – could be higher/lower % of course depending exactly where you sit in tax bands and what you get up to, but whatevs) vs 0.8% nearly-cash via COT-> Avios -> Nectar.

    Lets say you do spend 15k/month and we value Avios at the 0.8p Nectar floor, then:
    COT =180000k x 0.8% = £1440 back. Subtract £99 fee (which is tax deductible so call it £50 lost take-home income)= £1390 return
    Jeeves = £240k x 0.5% = £900 return

    Therefore doesn’t even work with the £250 bonus added on. For smaller spenders the maths is different; can’t be bothered to work out the exact tipping point as it depends so much on personal marginal tax rate and significant Amazon spend would also confound things 😀

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