Be a Jubilant Cashback Queen
CHESTER, England, May 28, 2012 /PRNewswire/ --
- Save up to £375* a year on cashback purchases
- HM The Queen could earn a staggering £375,000 by putting annual spending on plastic
In the lead up to the Jubilee celebrations, MoneySupermarket calculated Her Majesty The Queen could generate a whopping £375,000 a year if she were to put her £32 million annual household expenditure** on a cashback credit card.
However; it is not just The Queen that can enjoy the royalties of a cashback card; shoppers can make big savings when considering a reward credit card for their purchases. For example, Brits spending £1,000 a month on the American Express Platinum Card (which offers five per cent cashback on up to £2,000 of purchases in the first three months, and 1.25 per cent cashback on everything bought after three months) could gain an extra £225 cash back in a year, increasing to £375 a year when spending £2,000.*
Alternatively, if you are a keen traveller you may benefit more from the American Express British Airways Card which gives you air mile points on spending. It offers 1,000 bonus Avios air mile points when you spend £500 in the first three months, and one point for every pound subsequently. Royal travel expenditure could benefit too- the £6million** spent on travel by The Queen in a year would generate six million Avios air mile points - enough for 11 First Class return flights to one of the furthest Commonwealth countries, New Zealand- or 33 return flights if traveling economy!
Kevin Mountford, head of banking at MoneySupermarket.com, said: "As a summer of celebrations approach with the Diamond Jubilee and the Olympics, Brits may be looking for ways to feel jubilant about their own finances. Those who use a credit card for spending could make a right royal saving by considering a reward card with a broad range of incentives on offer, including cashback, air miles and loyalty club points. For those who pay off their debt in full each month using a cashback and reward card is a no brainer."
In addition to cashback, there are also a number of cards designed to give shoppers benefits from their weekly grocery or fuel shop- The Tesco Clubcard Credit Card at 16.9 per cent APR for example offers zero per cent on balance transfers for eighteen months or zero per cent on purchases for sixteen months. In addition, points accrued from shopping and petrol are rewarded with five points for every £4 spent in Tesco or one point if spent elsewhere. Whereas NatWest's Your Points MasterCard has a slightly higher APR of 17.9 per cent but offers zero per cent on purchases for eighteen months and has a points system for every pound spent, which can be used towards flights, holidays and even on certain brands such as M&S, Boots and Amazon.
Kevin Mountford continued: "Those looking to use a reward card should shop around first and consider the best card for their own circumstances. If you are a regular shopper it makes sense to look at a card which gives you money off your next shop, or a frequent traveller may benefit more from a card with air mile points for example. Many schemes are tied in to certain retailers and purchase types, and if you don't use them regularly in the right place your card will become redundant.
"Anyone thinking about taking out a reward card needs to ensure they are can pay off the full balance each month, ideally by a direct debit, to avoid getting stung by interest charges. However, if you intend not to repay your debt in full each month then I would recommend you should avoid reward cards and opt for a card with a lower interest rate instead."
Notes to Editors:
*Table to show top three cashback credit and reward cards
Sourced by MoneySupermarket.com 11.05.2012
Annual Annual Annual Cashback/Rewards Cashback/Rewards Cashback/Rewards based on based on based on Rep Introductory GBP1,000 monthly GBP1,500 monthly GBP2,000 monthly Provider APR Period Benefits spend spend spend 1,000 bonus Avios points when you spend GBP500 in the first 3 13,000 points 19,000 points 24,000 points American months Express 1 Avios 500 points = a 500 points = a 500 points = a British point for one way flight one way flight one way flight Airways every pound from Manchester from Manchester from Manchester Card 19.9% N/A spent to Paris to Paris to Paris 5% cashback on up to GBP2,000 of purchases in the first 3 months 1.25% cashback on everything 5% x GBP2,000 = 18.5% you buy GBP100 5% x GBP2,000 = 5% x GBP2,000 = American (based Double 1.25% x GBP100 GBP100 Express on cashback of GBP10,000 = 1.25% x 1.25% x Platinum annual 2.5% for GBP125 GBP16,000= GBP22,000 = Cashback fee of one month Total = GBP200 GBP275 Card GBP25) N/A every year GBP225.00 Total = GBP300 Total = GBP375 5% cashback in the first 3 months up to max GBP100 0.5% cashback on all subsequent purchases up to the next GBP5,999.99 1% cashback 5% x GBP3,000 = on all GBP100 purchases 0.5% x from 5% x GBP3,000 = 5% x GBP3,000 = GBP5,999.99 = GBP6,000 to GBP100 GBP100 GBP29.99 GBP9,999.99 0.5% x 0.5% x 1% x GBP9,999.99 1.25% GBP5,999.99 = GBP5,999.99 = = GBP99.99 cashback on GBP29.99 GBP29.99 1.25% x all 1% x GBP3,000.01 1% x GBP9,000.01 GBP5,000.02 = Aspire purchases = GBP30.00 = GBP90.00 GBP62.50 World from Total = Total = Total = Card 19.9% N/A GBP10,000 GBP159.99 GBP219.99 GBP292.48
Annual Annual Annual Cashback/Rewards Cashback/Rewards Cashback/Rewards based on based on based on Rep Introductory GBP1,000 monthly GBP1,500 monthly GBP2,000 monthly Provider APR Period Benefits spend spend spend Earn 1 point for every GBP1 spent at M&S and 1 point for every GBP2 spent elsewhere. Four times per year points earned will be converted M&S shopping x M&S shopping x M&S shopping x into M&S GBP6,000 = 6,000 GBP6,000 = 6,000 GBP6,000 = 6,000 Reward points points points Vouchers Petrol x Petrol x Petrol x which can be GBP3,600 = 1,800 GBP3,600 = 1,800 GBP3,600 = 1,800 used as full points points points or part Spend elsewhere Spend elsewhere Spend elsewhere payment on = GBP2,400 = = GBP8,400 = = GBP14,400 = M&S goods. 1,200 points 4,200 points 7,200 points 0% for 15 100 points = Total - 9,000 Total - 12,000 Total - 15,000 M & S months on GBP1 reward points/GBP90 points/GBP120 points/GBP150 Credit Card 15.9% purchases voucher voucher voucher voucher A choice 5 points for between: every GBP4 0% for 16 spent in months on Tesco stores Tesco shopping x M&S shopping x M&S shopping x purchases 5 points for GBP6,000 = 7,500 GBP6,000 = 7,500 GBP6,000 = 7,500 or; every GBP4 points points points 0% interest spent on Petrol x Petrol x Petrol x on balance Tesco fuel GBP3,600 = 4,500 GBP3,600 = 4,500 GBP3,600 = 4,500 transfers 1 point for points points points for 18 every GBP4 Spend elsewhere Spend elsewhere Spend elsewhere months spent = GBP2,400 = 600 = GBP8,400 = = GBP14,400 = (3.95% elsewhere points 2,100 points 3,600 points Tesco balance 150 points = Total - 12,600 Total - 14,100 Total - 15,600 Clubcard transfer fee GBP1.50 points/GBP84 points/GBP94 points/GBP104 Credit Card 16.9% applies) voucher voucher voucher voucher Receive double Nectar card points on shopping in store, online and in petrol filling stations for 2 years. This means you will receive 4 points per GBP1 spend in Sainsbury's, 2 points per 1 litre of Sainsbury's Sainsbury's Sainsbury's Sainsbury's shopping x shopping x shopping x fuel and 2 GBP6,000 = GBP6,000 = GBP6,000 = points per 24,000 points 24,000 points 24,000 points GBP5 spent Petrol x 2,664 Petrol x 2,664 Petrol x 2,664 elsewhere litres = 5,328 litres = 5,328 litres = 5,328 Customers points points points must be a Spend elsewhere Spend elsewhere Spend elsewhere Sainsbury's Nectar Card = GBP2,400 = 960 = GBP8,400 = = GBP14,400 = Finance holder to points 3,360 points 5,760 points Nectar Card obtain this Total - 30,288 Total - 32,688 Total - 35,088 Credit Card 12.9% N/A card. points/GBP150 points/GBP162.50 points/GBP175 1% cashback on supermarket spend Supermarket Supermarket Supermarket 2% cashback spend x GBP6,000 spend x GBP6,000 spend x GBP6,000 on = GBP60 = GBP60 = GBP60 department Petrol x Petrol x Petrol x 22.8% store spend GBP3,600 = GBP3,600 = GBP3,600 = (Based 3% cashback GBP108 GBP108 GBP108 on on fuel Department Store Department Store Department Store annual spend up to spend x GBP2,400 spend x GBP2,400 spend x GBP2,400 Santander fee of GBP300 per = GBP48 = GBP48 = GBP48 123 Card GBP24) N/A month Total - GBP216 Total - GBP216 Total - GBP216 1 point received per Supermarket Supermarket Supermarket GBP1 spent. spend x GBP6,000 spend x GBP6,000 spend x GBP6,000 Points can = 6,000 points = 6,000 points = 6,000 points be used Petrol x Petrol x Petrol x towards GBP3,600 = 3,600 GBP3,600 = 3,600 GBP3,600 = 3,600 flights, points points points holidays and Spend elsewhere Spend elsewhere Spend elsewhere NatWest on brands x GBP2,400 = x GBP8,400 = x GBP14,400 = YourPoints 0% for 18 such as M&S, 2,400 points 8,400 points 14,400 points World months on Boots and Total - 12,000 Total - 18,000 Total - 24,000 MasterCard 17.9% purchases Amazon. points points points
Sourced by MoneySupermarket.com 24.05.2012
**Queens's expenditure in 2011, source: http://www.royal.gov.uk/pdf/annual%20report%201011/66252_Text.pdf
Rewards calculated as follows when using an American Express Platinum Cashback card. (In addition, for the thirteenth month of every year the card awards double cashback of 2.5 per cent back on purchases)
5% cashback up to £2000 for the first three months= 5% x £2,000 = £100
1.25% x £30,000,000 = £375,000
Total = £375,100
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