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Capital One boosts intro cashback deal to 5%

New credit card offer is great for big spenders

Capital One has increased the cashback paid on its World MasterCard credit card. The card now offers 5% cashback for the first month, higher rewards for big spenders and the removal of the annual fee.

5% cashback is paid on purchases for the first three months (capped at a £100). You can then earn 0.5% on subsequent purchases on spending up to £6,000, 1% on amounts between £6,000 and £10,000 and 1.25% on spending of £10,000 and above made within a year. Cashback is paid every January as a credit to your account. The previous £30 annual fee that applied to the card has now been scrapped.

How can I earn maximum cashback?

The table below compares how much cashback you would earn within your first year on the three best deals currently on the market. It takes into account the introductory offers on Amex and Capital One, as well as their 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 on £500 and £1000 spend over the first year
Card name APR Cashback earned on £500 monthly spend Cashback earned on £1000 monthly spend Customer score
American Express Platinum Cashback Card 19.9% £103 £173 69%
Capital One World MasterCard 19.9% £98 £160 70%
MBNA Amex Credit Card with Cashback 18.9% £90 £180 51%

The new Capital One deal is very similar to the cashback rewards offered on the American Express Platinum Cashback Card, even down to the 19.9% APR on the cards. However, the spending levels at which higher cashback kicks in are slightly more generous on the Amex card, with 1% cashback kicking in on amounts between £3,500 and £7,500 and 1.25% on amounts above £7,500.

It is worth noting, though, that with Amex no cashback is awarded if your total spending over the year is less than £3,000. There is also a £20 dormancy fee if the card is not used for a year.

Both American Express and Capital One scored well in our recent customer satisfaction survey and are Which? Recommended Providers whilst MBNA score a low 51%.

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 an excellent 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.

‘Both American Express and Capital One reward big spenders the most, whereas MBNA’s 1.5% cashback level is very good if you are likely to use it at major supermarkets and petrol stations. Choose a card that matches your spending habits.’

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.

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