I love cashback. I save it all up and then take it out when I need to buy something or when I'm going on holiday. It's a nice bonus, but you need to be savvy, so you know what you're getting.
I recently applied for a new phone contract which gave me cash back (The Google Pixel 3, if you were wondering). However, what I didn't expect was the way the cashback would be paid back to me. That's why I've made this guide to help you if you encounter this in the future.
Cashback through Cashback Websites
It was my mum that introduced me into the world of cashback websites. I've written a whole article on using Topcashback (I've currently earned over £372! and counting).
This is where you sign-up to the website, search for the retailer you are going to shop at and click the cashback link. Your purchase is then verified and paid into your account. You have the option of saving up your cash back like I do and having it paid out at a time that suits you!
Cashback through Bank Accounts
Most high street lenders have created bank accounts that pay an amount of cashback on household bills when they are paid by direct debit. You use the account as normal, and then they will credit your account with the cashback. Some pay it directly into your bank account, and some hold it for you until you ask them to transfer it in.
This is great if you pay your household bills through your bank account and most providers will charge you a fee to hold the account. Make sure you check that you are earning more than the cost of the account or it might not be worth your time.
Cashback through Credit Cards
You can earn cashback through credit cards, the cashback is usually a percentage of what you spend on the card and can be paid either monthly or annually back into your account (depending on your card provider).
These can be a great way to earn extra cashback but only if you pay off the balance in full every month. If you don't pay off the balance in full, then you could start incurring interest on the balance which will end up costing you more money.
Cashback by Redemption
As I mentioned at the start, I recently got a new phone contract. I selected a deal that gave me, and on the website, it looked like it would be either paid to me or paid to the mobile phone network. After completing the purchase, I read the welcome pack and was quite annoyed that I hadn't read more into how the cashback was paid.
The cashback would be paid by redemption (Known as a 'rebate' in the US) meaning that I would have to pay full price for my phone contract per month.
Then I would have to submit my mobile phone bill to the online shop that I purchased the contract from at various months in my contract. The weird bit is that they will then send the cashback by cheque (Who uses cheque anymore it's 2019?!)
It's a little bit of a faff compared to the other methods of cashback, but if it's done by the rules they set out then it's money in your pocket!
Do you know of any other great ways to get cash back? Let me know in the comments or contact me here.