Mobile phone cashback

Mobile phone contracts can be expensive, so it's no wonder that many of us are attracted by discount 'cash redemption' deals - with up to half price off your monthly fee, they can certainly sound attractive.

How to compare mobile phone tariffs and save 50% on your bills

Discount 'cash redemption' deals that offer up to return up to half of your monthly contract payments can be a great way of saving money.

However, in practice many people who choose a cashback smartphone deal end up missing out on the discounts to which they're entitled.

This is because cash redemption offers typically require you to pay the full price and claim your discount back from the provider, which can be tricky because it's often confusing to work out what you have to send off to the provider and when you have to do it.

Mobile phone cashback deals tips

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Here's a quick guide and example to help you get the most out of your mobile phone cashback deal.

For the sake of example, let's imagine you are taking out a deal on a mobile phone contract for 24 months, which costs £25.54 per month, with 15 months half price line rental via cashback redemption.

1 Work out the total value of the cashback you are entitled to claim back

Here it is 15 months half price at £25.54. So, divide £25.54 by 2 to find out what the discount is per month and times that figure by 15 (months). (25.54/2) x 15 = £191.55. So the total owed here over the duration of the entire contract will come to £191.55.

2 Check your terms and conditions

Each contract will be very specific about at what points in your contract you will have to send in your bills to claim your cashback.

Normally, this will be on certain months. For this contract, the bills have to be sent on the 6th, 9th, 12th, 15th and 18th month of the contract.

3 Figure out which months these are (as in February, April and so on) and write them down in a calendar or create reminders on your phone so you don't forget!

Remember, in most cases you have to send the bill within 30 days of the date or you miss out on the discount altogether.

For example:

Contract Start Date 1st Claim Month 6 2nd Claim Month 9 3rd Claim Month 12 4th Claim Month 15 5th Claim Month 18
January Send bill dated June Send bill dated September Send bill dated December Send bill dated May Send bill dated June

4. When the time comes, send a copy of your bill (or print out of your e-bill) that shows your name, address, the date of the bill, your mobile number and your tariff for the months claimed

So long as you remember to send your bills within plenty of time to your mobile phone vendor, cashback deals are easy to claim back and offer massive savings.

Nevertheless, do pay attention to the small print from your retailer, and ensure that you fulfil all of the criteria to claim your cashback throughout your contract.

Failure to pay bills, sending an incorrect statement and taking too long to send a claim can all result in losing cashback, so remain organised and you can save hundreds of pounds on the cost of a mobile phone deal.