Making the Most of Cashback - How do Cashback Sites Work?

Here at 1Plus1 Guarantor Loans we’ve explored how cashback works, how to make the most - and what to avoid.

Cashback sites are a well-kept secret here, yet they’re a very simple way to earn cash every year without having to do much.

Here, we share those secrets!

What’s it about?

Cashback sites pay you cash for clicking through them before going on to another site to buy something.

As example as a simple explanation, if you were going to buy something from Amazon, but were directed to Amazon via a cashback website – rather than going direct - the cashback site would pay you back a percentage of your spend. If the offer was 10%, and you spent £40, you’d get £4 back.

Different cashback sites have their own rules and rates and may only apply to certain items, or you may need to have earned a certain amount of cashback before you can withdraw the funds.

Cashback sites don’t give away free money - they only offer some of your own money back on purchases you’ve already made

Which sites are best for cashback?

There’s a number of cashback sites to choose from, each with their own advantages. Here’s our top picks:

• TopCashback is one of the big boys and frequently comes out on top in price-comparison charts. Benefits include a free membership automatically enrolling you (this can be turned off at any time) in a trial of their premium membership when you sign up. They also offer a 25% bonus if you  take your earnings as a gift card instead of cash, valid at places including Amazon, Gap, and M&S.
• Quidco - competes with TopCashback to provide the best deals. So, if you’re making a big purchase, check both for the best price.
• OhMyDosh - is free to use. They also offer rewards for completing surveys, playing online games, and will enter you in prize draws for shopping at certain retailers.
• Swagbucks - like OhMyDosh, you can choose to be paid by gift cards or have it paid directly into your Paypal account.

Current Account Cashback Rewards

The banks all want to provide the best current accounts. It’s almost worth switching banks just to get the various rewards, perks, and benefits being offered.

Now the high-street bankers have gone one step further and are offering cashback rewards to compete with the sites mentioned above - on top of the cashback you could be offered simply for swapping banks. As well as providing cashback with online retailers, they can also offer cashback on monthly bills.

Each bank offers something slightly different. The best deals are usually offered to the premium current accounts. Which roundup the banks offering the best cashback rewards. Check out before deciding if it’s worth switching.

Stay safe with cashback sites

Be careful! It is easy to get carried away.

Don’t forget - cashback sites don’t offer free money. You only get some of your own money back on purchases you’ve already made. If you’re getting 10% back on a £50 purchase, you’ve still spent £45.

Don’t use it as an easy excuse to justify overspending. If you weren’t going to buy something originally, it shouldn’t be the reason to buy it now.

You should still shop around for the best deals and avoid spending money simply because cashback is on offer. Think of cashback as a bonus alongside your normal shopping.

Cashback sites don’t require any change in lifestyle or shopping habits - they just need a bit of forward thinking before making a purchase. Suddenly you could be a few pounds better off, and over the year, it all makes sense. Win win.