Nearly half of UK households say that they would struggle to cope if their monthly outgoings rose by £99. We look at how you can create some financial 'breathing space' to help you out if you lose your job or become ill.
Santander to pay cashback on train fares and fuel
Santander's 123 World cashback credit card paying 3% back on National Rail, Transport for London and fuel bills.
Image © Katie Collins – PA Wire
Santander has revamped its 123 World cashback credit card, with cardholders now enjoying a whopping 3% cashback on train fares as well as 3% off fuel costs.
From Monday 24th September, all spending on National Rail and Transport for London travel (which includes bus fares as well as train and tube tickets) will enjoy the 3% cashback rate.
The move will make the card far more attractive to commuters, particularly with train fares set to rise in the new year. For more check out Fury as commuters face train fare rises of up to 11.2%.
How much cashback could I get?
As someone who spends a small fortune on train fares from Hertfordshire into London, this move has made the card look far more attractive to me.
I spend a total of £2,166 on my train ticket a year. If I used the Santander 123 World cashback card for that spending, that's just shy of £65 in cashback a year (though there is a £24 annual fee for the card).
It's not just train fares that earn such a great rate either - your spending on petrol also earns 3% cashback, though you can only earn cashback on the first £300 a month you spend on train fare, petrol or a combination of the two.
Cardholders can also enjoy a rate of 2% cashback on spending at department stores and 1% on money spent at supermarkets.
Depending on how much you spend on your credit card - and where you do that spending - the 123 World card could earn you a cracking return.
In my case, while I don't really shop in department stores, I do spend a small fortune in Tesco. Between that 1% return and the money from the train fares, I'd pocket £77 a year in cashback, after the fee is taken. You can actually avoid the fee altogether by taking out the 123 World current account too, which pays cashback on a range of household direct debits. Read Santander 123 current account pays cashback on your direct debits! for more.
What's more, the cashback is actually paid on a monthly basis so you don't have to wait long to enjoy the fruits of your spending!
However, there are a number of other cashback credit cards that are worth considering.
Sainsbury's Bank Cashback credit card
The new card on the block, the Sainsbury's Bank cashback credit card will certainly appeal to regular shoppers at the supermarket.
For the first three months, all spending at Sainsbury's enjoys a return of 5% cashback (capped at £50 a month). And throughout the year, so long as you spend at least £250 on Sainsbury's shopping and £250 elsewhere, you'll enjoy £5 a month in cashback.
And there's no fee to worry about
Capital One Aspire World
The Capital One Aspire World card also doesn't charge a fee, and will appeal to shoppers no matter what their supermarket of choice is.
The Aspire World boasts 5% cashback on all spending in the first three months (capped at £100), with tiered rates after that depending on how much you spend, up to a maximum rate of 1.25%.
American Express Platinum Cashback Card
The American Express Platinum Cashback Card also pays 5% cashback in the first three months (again capped at £100), but offers a flat rate of 1.25% thereafter, no matter what you spend. But should you spend £10,000 over the year, you'll be rewarded with a 2.5% cashback rate in your anniversary month.
However, there is an annual fee of £25 to consider.
Aqua Reward MasterCard
Generally credit cards that offer a reward on your spending are the exclusive preserve of people with excellent credit ratings. That's not the case with the Aqua Reward card.
The Aqua Reward pays 3% cashback on all card purchases. However, the cashback you can earn is limited due to the restrictive credit limits - £250 to £1,600 depending on your circumstances. There's also an annual limit of £100 cashback.
That said, this card not only helps you rebuild your credit rating, it also rewards you for doing so in the form of cashback!
Making the most of your cashback
In order to get the maximum return from your cashback credit card, it makes sense to put as much of your monthly spend on your card as possible. However, that's not an excuse to start spending more than you usually do for the sake of a few extra pennies in cashback!
And make sure you pay your bill off in full each month. Otherwise any cashback you do earn will soon be eaten up by the interest you pay on that debt.
related stories on msn
1Comment
19/09/2012 14:40
Report
Are you sure you want to delete this comment?
latest money videos
more on msn money
Avoid these mistakes if you want to lead a richer life!
Save regularly to nab a leading easy access ISA rate from Newcastle Building Society and the chance to earn up to £1,000 cashback.
Barclaycard is now offering a record 27 interest-free months to pay off your debts.
The taxman says three and a half million people are due a refund, but two million will have to fork out for underpaid tax.
Fed up with low savings rates and high borrowing rates? As Dave Fishwick and his Bank of Dave has demonstrated, there are other options out there.
If you want to find a unique property bargain, there is plenty of help available online - you just need to know where to look.
US couple have found an innovative solution to the problem of sky-high house prices.
The two banks have now joined the Post Office's banking network, meaning customers can make withdrawals and deposits at branches around the UK.
Get 5p off per litre of fuel at Shell, broadband from £2 a month and more in our latest discount and freebie round-up.
Lifestyling is supposed to mean that your pension pot becomes more secure the nearer you get to retirement. Yet your pension provider might be switching you to overpriced and therefore riskier investments.
If you want to borrow a larger sum of money and repay it over time, a conventional personal loan is not always your best option.
