The best cashback credit cards of 2020

Cashback credit cards let you earn money back on every purchase you make. Here's how to find the one that'll pay out the most.

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Earn rate

American Express Platinum Cashback Card image
Representative example: When you spend £1,200 at a purchase rate of 22.2% (variable) p.a. with a fee of £25 per annum, your representative rate is 27.3% APR (variable).
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All-rounder

Santander All in One Credit Card image
Representative example: When you spend £1,200 at a purchase rate of 15.9% (variable) p.a. with a fee of £3 per month, your representative rate is 21.7% APR (variable).
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What credit card gives the most cashback?

The American Express Platinum Cashback card has a cashback rate of up to 1.25%, as well as 5% cashback on purchases for the first 3 months of membership (up to £125). Most cashback credit cards offer an earn rate between 0.25% and 1%, and some may also have additional reward point schemes.

What is the best cashback credit card?

This will really depend on what you want to get out of your cashback credit card. Do you simply want to get the best cashback earn rate, or are you looking for a card with no annual fees or a competitive interest rate?

Some cards, such as the American Express Platinum Cashback card, only offer the top earn rate on purchases over a certain amount. While it may have the “best” cashback rate, you’ll need to be spending at least £10,000 each year to benefit.

The highest earn rates

Although it’s not all about the earn rate, that’s one of the key factors that can help you pick out the best offers on the market.

American Express Platinum Cashback Card

American Express Platinum Cashback Card

★★★★★

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27.3%

Representative APR

£25

Yearly account fee

Up to £125

Intro cashback

Up to 56 days

Interest-free each billing period

Despite a few T&Cs, this cashback deal is hard to beat – offering a whopping 5% on purchases in your first 3 months. After that you'll earn 1% on the first £10,000 you spend annually and 1.25% thereafter (uncapped). Like most Amex cards, it comes with a raft of benefits to keep you interested, like travel accident insurance (subject to enrolment) and refer-a-friend bonuses.
  • A cashback deal that's hard to beat
  • No limit on cashback earnings after the introductory period
  • Complimentary supplementary cards
  • Earn rewards for each friend/family member that successfully applies
  • Minimum spend requirement to access the top earn-rate
  • Account fee of £25 per annum
Availability Available to new customers
Residency UK resident and has a UK bank or building society account.
Foreign usage charge (EU) 2.99%
Cash advance fee 3% (min. £3)
Representative example: When you spend £1,200 at a purchase rate of 22.2% (variable) p.a. with a fee of £25 per annum, your representative rate is 27.3% APR (variable).

The lowest fees

If you’re not willing to pay a regular account fee, the good news is there are still deals out there which can earn you meaningful rewards.

American Express Platinum Cashback Everyday Card

American Express Platinum Cashback Everyday Card

★★★★★

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22.2%

Representative APR

£0

Account fee

Up to £100

Intro cashback

Up to 56 days

Interest-free each billing period

Offering most of the benefits of its big sister, the Platinum Cashback card, this Amex deal pays 0.5% on the first £5,000 of annual spend, and 1% (uncapped) thereafter. You'll also enjoy travel accident insurance (subject to enrolment) and refer-a-friend bonuses.
  • Earn uncapped cashback
  • No monthly/annual account fee
  • You must spend at least £3,000 on the card annually to qualify for cashback.
Availability Available to new customers
Residency UK resident and has a UK bank or building society account.
Foreign usage charge (EU) 2.99%
Cash advance fee 3% (min. £3)
Representative example: When you spend £1,200 at a purchase rate of 22.2% (variable) p.a., your representative rate is 22.2% APR (variable).

Need a card that can do more than just earn cashback?

If you need your credit card to do a little more than just earn you cashback – like perhaps save you money on interest – then you may want to look at “all-rounders”.

Santander All in One Credit Card

Santander All in One Credit Card

★★★★★

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26 months

0% interest on balance transfers

0%

Balance transfer fee

26 months

0% interest on purchases

21.7%

Representative APR

Paying out 0.5% on your spending, this Santander card has a fairly run-of-the-mill cashback offer. What's less run-of-the-mill is all the other features of the card. For example, if you already have card debt, you can transfer your balance and pay no interest for 26 months – with no transfer fee.
  • Earn uncapped cashback;0% balance transfer and purchases offers
  • Account fee of £3 per month
Availability Available to new customers
Residency UK Resident for more than 36 months
Min. income 7500
Foreign usage charge (EU) 0%
Cash advance fee 3% (min. £3)
Representative example: When you spend £1,200 at a purchase rate of 15.9% (variable) p.a. with a fee of £3 per month, your representative rate is 21.7% APR (variable).

Earn cashback on business spend

A business credit card is a great way to boost spending power and enjoy a little flexibility in handling your company’s cashflow. But on top of this, you can enjoy perks like cashback – potentially on multiple cards, rather than just one.

Capital on Tap Business Rewards Credit Card

Capital on Tap Business Rewards Credit Card

★★★★★

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39.9%

Representative APR

0%

Foreign transaction charge

10,000 points

Max. intro bonus

Up to 56 days

Interest-free each billing period

Paying out 1% on your business spending, Capital on Tap's business rewards card earns you points that you can redeem as cashback or Avios – the choice is yours. As well as offering invaluable cashflow flexibility for your company, the card also converts currencies and standard Visa exchange rates – with no margin or fees added on top.
  • Avoid currency conversion charges
  • No UK cash machine fees
  • Up to 56 days to spread the cost of business purchases
  • Complimentary supplementary cards
  • Account fee of £99 p.a.
Foreign usage charge (EU) 0%
Cash advance fee 0%
Representative example: When you spend £1,200 at a purchase rate of 39.41% (variable) p.a., your representative rate is 39.9% APR (variable).

7 tips to find the best cashback credit card

  1. Earn rate. The key feature of a cashback card, the earn rate is the amount you earn in cashback every time you make a purchase using your card. If you have an earn rate of 1%, that means you’d get £1 in cashback for every £100 spent. The higher your earn rate, the more money you can earn in cashback. Bear in mind that some cards will offer an enhanced earn rate for spending with their brand, or brands they’ve partnered with – for example, a Tesco cashback card that offers a higher earn rate for all spend at Tesco and a lower earn rate for all your other spending.
  2. Annual fees. The credit cards with the best cashback rates will often also have an annual fee, and this can have a big impact on how much value you’ll get out of your cashback card. For example, if your card has an annual fee of £25 and a 1% earn rate, you’d need to spend £2,500 to break even on the annual fee.
  3. Introductory offers. Many cashback cards will have a generous introductory offer that lets you earn cashback at a higher rate. However, it will revert to the standard cashback rate at the end of the introductory period. When comparing the best cashback cards, you’ll need to consider both the introductory and default earn rates to see which offers the best return on your spending.
  4. Earning caps. Cards with the best earn rates tend to also come with earnings caps that put a ceiling on the amount you can earn in cashback. An introductory period might have its own earnings cap.
  5. Minimum spend requirements. Look out for a minimum spend requirement before the cashback kicks in, for example clauses like “1% on monthly spend over £100” or “0.5% when you spend £1,000 or more each month”.
  6. Interest rate. Cashback cards only make sense if you don’t carry a balance from month to month. That’s because when you clear your balance in full each month, you’ll usually avoid interest altogether (most cards offer up to 56 days interest-free on purchases, but this won’t apply if you carry a balance over from month to month). It’s all well and good earning an amazing cashback rate, but if you need to pay interest on your balance you’ll quickly negate any benefits you’ve received from the cashback. Try not to let the card issuer win: if you’re paying them 21% while they pay you 1%, you’ve got the wrong card.
  7. Other features. Credit card rates and fees can be fiddly, so try to weigh up the value of the perks and the cost of any card expenses to see if an offer is a sensible bet for you.

Set up a direct debit to clear your full balance each month and there’s no reason why you can’t “beat the bank” – with a card that gives you money, rather than costing you money. But if you’re paying the bank 21% while they pay you 1%… then you’ve probably got the wrong deal.

What’s the best cashback credit card for bad credit?

Unfortunately, you’ll generally need a good credit score in order to be eligible for the best cashback credit cards. Even if you’re eligible, you’ll probably receive a much higher interest rate, which means it’s important that you pay off your balance in full each month. If you don’t, the interest you pay will likely outweigh any money you get in cashback.

Is a cashback credit card worth it?

If you use your credit card regularly, but are still able to pay off your balance each month, a cashback credit card can give you a better return on your spending. You’ll earn cashback on all your purchases, which can make a big difference over time, as long as you’re disciplined about using your card.

If you don’t use your card much, or have trouble clearing your monthly balance, you may find a cashback credit card doesn’t represent good value for money, especially if it also charges an annual fee.

Find out which cashback deals you’ll be approved for (with no impact on your credit score):

Check my eligibility

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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