NatWest and Royal Bank of Scotland have launched the Cashback Plus Credit Card, offering users the chance to earn uncapped rewards on everyday purchases.
The card rewards you with 1% cashback on all money spent at supermarkets and participating retailers, including Cineworld, Caffe Nero and New Look.
Everywhere else you'll get 0.5% cashback on your spending with the Cashback Plus Credit Card, unless it's a contactless transaction in which case you'll get 1% cashback (until 31st March 2015)
However, there is an annual fee of £24 to consider, and a representative APR of 17.4%.
What to do with your rewards
Once you’ve reached £5 in rewards, there are three ways you can redeem your rewards from the Cashback Plus Credit Card.
Bank it: Turn your rewards into cash and transfer it to your NatWest/RBS personal current account (if you have one). Otherwise, you can use it to go towards your credit card balance.
Trade: Exchange rewards for gift cards or tickets from selected retailers.
Donate: If you’re feeling generous, you can donate your cashback straight to Barnardo’s, Cancer Research UK, Macmillan Cancer Support or the NSPCC.
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The other cards
There are plenty of other cashback cards on the market currently, and almost all of them pay much better rates of cashback than the new NatWest/RBS card.
For example, there's the American Express Platinum Cashback Everyday Card, which pays a far more impressive 5% cashback in the first three months (capped at £100 cashback). After that, you enjoy anything from 0.5% to 1.25% cashback, depending on how much you spend over the year. What's more, it's fee free. It comes with a representative APR of 19.9%.
Then there's the Santander 123 Cashback Credit Card. Here you earn 3% cashback on petrol and travel purchases, 2% on spending at department stores and 1% on supermarket spending. It has an annual fee of £24, and a representative APR of 16.5%.
For a full round up of the best cards around, check out The best cashback credit cards.
Getting the most from a cashback card
Cashback credit cards can be a great tool, so long as you pay your balance in full each month. Otherwise any cashback that you earn will be eroded by interest charges. The way to get the best return on your card is by using it as a regularly as possible. That means putting all of your usual spending on the card, but it's not an excuse to go mad and spend more than usual!
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