Uswitch comments on Santander slashing cashback on 123 credit card
Commenting on Santander limiting cashback for 123 credit card holders to a maximum of £3 per category, and a maximum of £9 per month, Tashema Jackson, money expert at Uswitch.com, said: “Santander’s move to cap the amount customers can earn on their cashback spending is the second blow in 12 months for loyal 123 credit cardholders who were just last year hit with a hike in monthly fees. Yet, this change is perhaps not unexpected and follows a long line of credit card providers that have slashed their customer rewards recently, including American Express and Marks & Spencer.
“When it comes to credit card providers, loyalty doesn’t always pay. If you’re a Santander 123 customer the maximum you can now earn in cashback is £6 per month, after the monthly fee is deducted. To earn this £6, you will need to spend £300 on food shopping, £150 at department stores and £100 on travel each month.
“If you’re unhappy with the change to your account, it’s worth shopping around to see if there’s a credit card deal which better meets your needs. Pay close attention to the terms and conditions, this all important small print will lay out what you need to do to reap the rewards. As ever, where possible, make sure you pay off your balance in full each month – failure to do so could see the interest you pay outweigh the monthly cashback you earn.”
| Credit card | APR | Annual Fee |
Rewards
| | Tesco Bank Clubcard Credit Card | 5.9% | No fee | · Earn 1 Clubcard point for every £4 spent (£4 minimum) in Tesco and 1 point for every £8 spent (£8 minimum) elsewhere. | | British Airways American Express® Credit Card | 22.9% | No fee | · Earn 1 Avios for every £1 you spend.
· Earn 9,000 bonus Avios when you spend £1,000 in your first three months of Card membership.
| | American Express® Platinum Cashback Credit Card | 22.9% | No fee | · Get 5% cashback up to £100 cashback for your first 3 months of card membership.
· Plus earn 3% cashback up to £15 on all purchases from Amazon.co.uk in your first 3 months of card membership
· After first three months:
o Spend £0 to £5,000 and receive 0.5% cashback on all purchases
o Spend over £5,001 and receive 1% cashback on all purchases
|
Find out how you could save over £1,000 a year with Uswitch here.
FOR MORE INFORMATION
Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR
Notes to editors
Previously the Santander 123 credit card had no cap on the amount of cashback which could be paid out for spending at the supermarket or in department stores. Cardholders could earn 1 per cent cashback on supermarket spending and 2 per cent at department shops with no cap, but from February next year the cashback will only be available on a maximum spend of £300 and £150 respectively per month. Three per cent cashback will still be available on spending on travel, on spending of up to a maximum of £100 per month, a reduction from £300 per month. This means customers will now be able to earn a maximum of £3 per category, or £9 per month from the card, which has a monthly fee of £3. The new caps for cashback will already be applied to those who signed up to the card after September 15 while the cap will be introduced from February for those who had a card before this date.
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