American Express has replaced its tiered cashback deal with a new standard cashback rate of 1.25% on all spending. The card also now has an annual fee of £25.
The new Amex Platinum Cashback Credit Card offers a 2.5% introductory cashback level on all spend over the first three months (up to a maximum of £100), after which you earn a standard 1.25% cashback on all spending.
If you spend £10,001 within the year, you will be eligible to receive one month at the increased 2.5% cashback level the following year. The card charges an APR of 14% on purchases and also has a £25 annual fee, so is only suitable for high spenders. You’ll need to spend at least £2,000 a year just to earn enough cashback to cover the annual fee.
Which cashback card offers the best deal to match my spending habit?
The table below compares how much cashback you would earn within your first year on the three best cashback credit card deals currently on the market. It takes into account the introductory offers on Amex and Capital One, as well as any tiered cashback levels. The MBNA American Express credit card pays cashback at a higher 1.5% rate at most major supermarkets and petrol stations, while the cashback level on all other purchases is 0.75%. We have used the 1.5% rate in our calculations.
|Comparison of cashback earned based on different monthly credit card expenditure|
|Card name||Purchase APR (%)||Annual Fee||Intro Cashback deal||Cashback earned on £500 monthly spend||Cashback earned on £1000 monthly spend||Cashback earned on £1500 monthly spend||Cashback earned on £2000 monthly spend||Customer score|
|American Express Platinum Cashback Card||14%||£25||2.5%a||£69||£163||£256||£350||69%|
|Capital One World MasterCard||19.9%||no||5%b||£98||£160||£214||£270||70%|
|MBNA Amex Credit Card with Cashback||18.9%||no||n/a||£90c||£180c||£270c||£360c||51%|
- For the first three months up to a maximum £100. If you spend £10,001+ within the year you are eligible for the 2.5% cashback for the first three months of year two as well
- For the first three months up to a maximum of £100
- Assuming you earn cashback at 1.5% shopping at the selected major supermarkets and petrol stations. Spending elsewhere earns cashback at 0.75%
Choose a cashback credit card that matches the way you’ll use it
Which? credit card expert Bobby Nicholls commented: ‘These credit cards can earn you a good level of cashback simply for using them for everyday purchases. However, they are only suitable for people who pay off their bill in full each month, otherwise the high APRs will soon wipe out the cashback you’ve earned.’
Get the best credit card for your needs
If you need advice to help you choose the best credit card for your needs, read the free Which? guide to choosing a credit card. Once you know the best type of card for you, check out Which? Best Rate credit cards to find the most competitive deal available today, whether it’s a cashback card, a card for borrowing or the longest 0% deal on balance transfers.