Undoubtedly the best cashback credit card currently on the market, the American Express Platinum Cashback credit card pays 5% cashback for 3 months and up to 1.5% cashback thereafter.
Product Details
American Express - Platinum Cashback Credit Card
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What's the deal?
The American Express Cashback card pays 5% cashback on credit card purchases for 3 months, equating to a 5p return on every £1 you spend on the card during that time.
After the 3 month introductory rate ends the cashback rate becomes tiered and the rate you will receive depends on how much you spend on your card.
Annual spending that totals less than £3,500 will receive cashback at a rate of 0.5%, amounts between £3,500 and £10,000 will earn cashback at a rate of 1% and any amount you spend over £10,000 will receive cashback at a rate of 1.5%. After the introductory period ends there is no limit on the amount of cashback you can earn by spending on the card.
What makes it great?
The 5% return available for 3 months on the American Express Platinum Cashback card is the best cashback rate currently available on a credit card.
Cashback will be paid on spending up to a £2,000 maximum during the introductory period meaning that you could potentially get a £100 rebate should you take full advantage of this limit.
So as to maximise your cashback potential it can be a good idea to apply for a American Express Platinum Cashback card shortly before you know you will be spending a larger-than-usual amount, for instance if you're booking a holiday, moving house or have some other expensive occasion to budget for. Doing this will ensure that you will get the full benefit of the 5% for 3 months cashback offer.
After the introductory cashback offer expires the American Express Platinum Cashback card still pays cashback at a very competitive rate making it a good option for ongoing spending too.
Who would it suit?
Cashback credit cards are best used by individuals who pay off their credit card balance in full each month as in almost all instances the rate of interest accumulated on any outstanding debt (in this case 18.9% APR) will be far greater than any cashback rebate you will receive.
They are also unlikely to be well suited to those who are looking to transfer outstanding balances from other cards or make cash withdrawals on their credit card.
Something else to consider is that this card is only available to individuals over the age of 18 who earn more than £20,000 a year.
What's the catch?
This card's main sticking point is that while most larger chain stores, restaurants and other goods and services providers now accept American Express as a means of payment, some independent businesses still don't. For this reason it's important to remember that you may not be able to use your cashback card to make payment everywhere you spend so it can be a good idea to carry a backup.
While the American Express Platinum Cashback card doesn't have an annual fee to factor into the equation it does apply a 'service charge' of £15 if, during any year (counted as 12 months from your card anniversary date), when the total transactions made on your card come to less than £500 - excluding any charges or balance transfers.
What's more, no cashback will be paid on a month where you exceed your credit limit or make a late payment so it will pay to keep a close eye on your spending and perhaps set up a direct debit to automatically clear the balance on your card each statement date so you never get caught out.
It also has a reasonably high typical APR of 18.9%, making it less than ideal for spreading the cost of payments.
You should also be aware that any cashback you earn during the initial three month period will be returned to you as part of your annual rebate, rather than at the end of the introductory offer.
What's the alternative?
The Leeds Building Society Mastercard credit card offers the next best cashback offer paying 1% on all spending on the card until 30th June, 2009. After this date a cashback rate of 0.5% will apply to new purchases.
The Smile Classic Visa pays a flat rate of 0.5% cashback on all spending (with no maximum limit) and recredits any cashback you earn straight on to your credit card bill one month in arrears so that the amount you owe is automatically reduced.
The Bank of Ireland also pays 0.5% cashback on spending on their Moneyback credit cards.
The Barclaycard OnePulse credit card may be a good option to consider if you live in London as it pays 5% cashback on all Transport for London purchases and 0.5% on all other purchases until 31st December, 2009 although both are capped at a maximum of £15 per month.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
