CHESTER, England, January 30, 2012 /PRNewswire/ --
- Using a market leading current account and cash back card could add an extra £450* to your income
Brits could boost their wages by being financially savvy in 2012, according to analysis from MoneySupermarket.com. Someone with a monthly income of £1,500 (post tax) could earn an additional £450* in interest and cash back this year by simply leaving their money in a market leading current or savings account for the entire month and using a cash back credit card for their monthly spending, paying it off in full at the end of the month.
For example, using the Santander Preferred current account, offering five per cent AER for customers in credit, would earn someone an extra £75 in interest over the year, if they left £1,500 in the account for the month.*
By leaving £1,500 in the current account, and putting all your expenditure on the Amex Platinum cash back card- which pays 2.5 per cent cash back in the first three months up to a total of £100, and a subsequent 1.25 per cent after that- could earn £243.75 cash back over the year, taking into account an annual fee of £25*. However, consumers must make sure they pay off the card in full each month otherwise the interest charges would offset the cash back benefit. Adding this to the money earned keeping money in Santander Preferred current account, would earn an additional £318.75 in twelve months*.
Meanwhile, those looking to switch their main account to the Santander Preferred current account could benefit from an additional financial boost, with Santander currently offering new customers £100 cash back when switching to the account. What's more, consumers can also take advantage of a £30 Amazon Gift Certificate when opening the account exclusively through MoneySupermarket.com** earning the equivalent of an extra £130.*
Kevin Mountford, head of banking at MoneySupermarket.com, said: "At a time when interest rates are relatively low, savvy consumers can help boost the earning potential of their money by taking advantage of the various offers available on the market, sometimes to the tune of hundreds of pounds. However, in order to benefit from these deals you need to be disciplined, otherwise you can leave yourself out of pocket.
"Using a cash back reward card and a high interest current or savings account is a clever way of making your wages do the overtime so you don't have to. Keeping money in a current account and putting everyday expenditure on a cash back card, but then paying the card off in full at the end of the month can help generate additional income. However, I would advise anyone thinking of doing this to ensure they are aware of the full terms and conditions when doing so. For example, not paying in the minimum amount to a current account or making a late or missing a payment on a credit card balance would lead to interest being charged, effectively cancelling out any cash back benefit you have earned."
Notes to Editors:
*MoneySupermarket.com calculated the interest based on someone contributing £1,500 each month into a market leading current account, while using a cash back credit card for purchases.
- 5 per cent AER on the Santander Preferred current account for £1,500= £75p.a
- Amex Platinum cash back over a year total =£318.75 (includes payment of £25 annual cash back card fee). [Calculated as £100 maximum cash back over the first three months, and 1.25 per cent for the remaining nine months when spending £1,500= £168.75]
- Extra savings when opening a Santander Preferred current account via MoneySupermarket.com (£100 on opening and £30 Amazon gift card) = £130.
Total savings: £448.75
**Offer ends 12th February 2012
MoneySupermarket.com's customer commitment
- No other site compares more prices or products
- We are independent so only find the best deals for you
- The price you see is the price you pay - you don't need to go direct and you won't get a better deal doing so
- Your details are safe with us and we won't sell them to anybody
MoneySupermarket.com compares (at 22nd December 2011)
- 86 car insurance providers and 78 home insurance providers
- 11 broadband providers and 18 energy providers
- 30 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 25 credit card providers
- 70 savings providers and 36 current account providers.
- Over 1,000,000 mobile phone deals
We promise to be clear and impartial
- All the products in our full search results tables are displayed in a completely unbiased manner.
- We don't add fees or commissions on to the prices we compare.
- There may be times when another site compares more companies than us on a particular product, perhaps because of market changes or technical issues. You'll be able to see this and know we are working hard to fix it.
We promise to be trustworthy
- We never use your data to make unwanted sales calls or send you spam.
- We never pass your personal information to third parties unless you give us permission to do so.
- Even if you choose to receive additional information from us, you can opt out at any time.
- We promise to be supportive.
- You can use our community forum to get information and help from other customers.
If you need further help or support, you can contact our sales advisors, customer services agents.
For further information please contact:
PR Manager Financial Services