Reward boost for new and existing cardholders shopping at department stores.
NatWest and Royal Bank of Scotland (RBS) have announced they will offer a bonus cashback reward rate on their Cashback Plus credit cards for a limited period.
The cards normally pay 1% cashback on all spending at supermarkets, currently doubled to 2% during December, and at selected retailers or 0.5% cashback when you shop elsewhere. You also get an extra 1% cashback on all contactless transactions until March 2015.
But from 1st January to 31st March 2015 new and existing cardholders can earn a bonus 5% rate on all department store shopping.
This cashback rate, like the others on the cards, is uncapped and cardholders can choose to bank, trade or donate their cashback reward balance.
You should bear in mind both have a £24 annual fee, and the cards have a representative APR of 17.4% if you don't pay off your balance in full each month.
Alternative cashback credit cards
If the NatWest or RBS Cashback Plus credit cards don’t appeal there are plenty of other cashback credit cards to pick from.
You could go for the American Express Platinum Cashback Everyday Card, which pays 5% cashback on purchases up to £2,000 in the first three months. Thereafter the card earns you from 0.5% to 1.25% cashback, depending on how much you spend over the year. This card is fee-free and comes with a representative APR of 19.9%.
Or there's the Santander 123 Cashback Credit Card. With this card you can earn 3% cashback on petrol and travel spends, 2% on department store purchases and 1% on supermarket shopping. On top of this the card offers a market-leading 23 months 0% on purchases and balance transfers, with no fee on the latter. But the card does have an annual fee of £24, with a representative APR of 16.5%.
For a full round up of the best cashback cards around, check out The best cashback credit cards.
How to use a cashback credit card
When used properly, cashback credit cards can be a useful way to earn some extra money.
To ensure you get maximum benefit you’ll need to make sure you pay your balance in full each month. Otherwise any cashback that you earn will be wiped out by the interest charges.
Another golden rule is not to spend more than you normally would in pursuit of the rewards. Instead try to be methodical and put all your normal spending and any other big planned purchases on the card to receive the best return.
More on credit cards:
Barclaycard unveils contactless payment gloves
Santander launches longest 0% purchase card ever
Santander's two top new low-fee balance transfer cards