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Can you cover Christmas with cashback?

Can you cover Christmas with cashback?

Category: Money

Updated: 16/11/2015
First Published: 02/11/2015

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

For many of us Christmas is a costly affair, with decorations, food and presents all taking a toll on our carefully managed budgets. But what if you could cover some of the expense with cashback? Well, according to research by Moneyfacts, you can!

Be a savvy spender

Our research has found that savvy spenders can accumulate a nice pile of cash by making the most of cashback deals offered on credit cards and current accounts. Indeed, smart shoppers could find themselves up to £180 in pocket in just one month if they plan ahead carefully.

For example, by simply switching to Halifax's Reward Account, customers can benefit from £100 cashback – that's easy money! Thereafter, they can get up to 15% cashback on purchases made with their debit card, so say you splashed out £500 on Christmas goodies, you could get up to £75 back! Plus, if you keep an eye on your balance and make sure it stays in credit, you can earn other £5 a month. In total, that's £180 – a sum that could definitely lessen the load of the festive season.

A smaller, but still welcome, sum can be earned from American Express' Platinum Cashback Everyday Card. This credit card pays 5% cashback on purchases for three months - more than enough to cover the festive period - which means a £500 spend would see you get £25 back.

"These cashback deals mean that customers really can get something for nothing," commented Rachel Springall, finance expert at, and she urges people to make the most of banking competition: "Banks are fighting each other to get new current account customers through the door, so switching now means customers can get a tempting cash injection."

However, it's best not to jump onto the cashback bandwagon without looking first; as Rachel points out, some cards and current accounts charge fees, which means consumers must ensure that the cashback earned outweighs the costs of having the account or card. In addition, some deals have caps on the amount of cashback that can be earned, while others restrict cashback to certain spending, such as on utility direct debits.

Nevertheless, if you weigh up the deal in its entirety, you could enjoy the benefits of Christmas cashback. But don't wait too long! Providers can change their deals at any time, so if you want to snap up some cashback festive cheer, then you need to act soon. "Capital One, Tesco Bank and NatWest [have already] withdrawn or changed their rewards within the last six months," cautioned Rachel, "so if consumers want to take advantage of the deals on offer, they need to act fast".

Remember, in order to secure a mortgage, credit card or personal loan you need to have a good credit rating. To find out if yours has a clean bill of health, contact a credit check provider, such as Experian CreditExpert to investigate your credit report.

What next?

Find a cashback credit card

Thinking of switching? Check out the current account market

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.