Ever heard one of your friends boasting about how much cash back they received from purchasing something and wanted to know how you could do the same?
We've listed some of the ways you could enjoy cashback or rewards on your everyday spend. From a shop at your local supermarket to taking out a phone contract online.
There are a number of cashback websites that you can join to get money back on your purchases. You may have to spend over a specified amount to get the cashback, and the cashback could be a percentage of your spend or a fixed amount - e.g. £10.
Quidco and TopCashback are well-known cashback website examples and they've signed up a host of online retailers, including department stores, insurers, travel companies, electrical specialists and many more. Search 'cashback sites' and you'll find plenty of others, too.
How does it work?
Whenever you want to buy something online make sure you head to a cashback website first. Search for the brand/s associated with the item you want to buy or the service you want to pay for then click through to their website. It should recognise that you've come from a cashback site and you'll often get a notification in a day or so to tell you it's tracked.
Some sites even allow you to register your debit card for in-store cashback that you can earn while shopping on the high street.
What are the 7 things I should be aware of?
The key thing to remember is that cashback isn't guaranteed - mainly because of purchase tracking issues - so you shouldn't rely on it hitting your bank account. Here are some other things to bear in mind:
1. Check whether the cashback site charges an annual fee as this could lower your earnings
2. The purchase you make might not track but there are a couple of things you can do:
a.Always clear your web browser's cache and cookies before going to cashback sites
b.Contact the cashback company if you've made a purchase and it hasn't registered
3. Always compare different companies who might sell the item or service you want to purchase - some might offer the same thing for less, offer more cashback than others or have a special deal running
4. It can sometimes take a few months for the cashback to be paid. This is because the company needs to verify that you didn't return what you bought or cancel the service you signed up for
5. Sometimes you might need to have earned a certain amount of cashback before you can get it released and paid into your bank account (or sent as vouchers)
6. Companies can go bust at any time or your earnings could expire so if your cashback is ready to be paid, get it into your account right away
7. If you're using a discount code for a website, you can't usually earn cashback on top of that. And remember, the voucher code might offer a better financial reward
Cashback or reward credit Cards
Credit cards offering cashback or reward points are another good way to get something back from your spend (if you're eligible for one and can afford to repay what you borrow, of course). Some will offer a flat rate of cashback, no matter how much you spend, or a percentage of cashback on your overall spend.
There are other cards that'll allow you to collect reward points, like Avios and Nectar. If you accumulate enough you'll be able to trade them in towards all kinds of things including flights, holidays or other treats.
What should I be aware of?
- Cashback or reward cards are great if you pay off your balance each month and avoid incurring interest, but are less of a benefit if you don't
- There may be an annual fee for taking out one of these kinds of credit cards which could make your rewards less valuable
Remember that if you're looking to take out a
, shop around to find the one that best suits your needs.
Current account cashback
Yep, that's right - cashback from a bank account.
There are some banks giving you the opportunity to earn cashback on the spend you make on your debit card. For example,
TSB's Plus account
offers 5% cashback on your first £100 of contactless payments every month, from October 2015 until January 2017. You need to be registered for Internet Banking, and contactless cashback is subject to eligibility and an application for a contactless Visa debit card.
Remember you can now use contactless for transactions up to £30 and you can even use contactless to pay for things like using London's transport network. So it shouldn't be too difficult to maximise your cashback earnings.
Other banks are also offering similar benefits, like cashback on selected retailers, on utility bills paid by direct debit and travel (TfL, National Rail and fuel). If you're thinking of switching
, do your research to find the one that gives you everything you need.