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HyperJar launches cashback gift cards – how much could you earn?
Budgeting app HyperJar has launched a new feature that allows you to earn between 1% and 15% cashback by purchasing e-gift cards with more than 50 retailers.
In theory, this could be a great way to earn some extra cash on your everyday spending and Christmas shopping – but gift cards come with their own risks to be aware of.
Which? takes a closer look at how much you could make and the risks to be aware of, to find out whether HyperJar’s new feature is all it's hyped up to be.
What is HyperJar?
HyperJar is a budgeting app that has been around since 2019 and allows you to commit money you know you will spend at certain retailers into virtual jam jars managed via its app.
You can download the app for free and, once approved, you'll get a sort code and account number you can use to transfer money into your HyperJar account. You'll also get a prepaid card for spending that you can use abroad fee-free.
Once you've loaded money into your account, you can separate it into various virtual jars linked to goals, group-spending or specific retailers.
The app also has other budgeting features, such as shared spending, and you can set up accounts for kids to help them manage their pocket money.
- Find out more:best budgeting apps 2023
How does HyperJar cashback work?
HyperJar will now let you buy e-gift cards for more than 50 brands, including Adidas, Amazon, Currys, Costa Coffee, M&S and John Lewis.
Each retailer has its own cashback rate, varying between 1% and 15%. This will be paid immediately into your HyperJar account after you've bought the gift card, and can be used straight away.
Your e-gift card will be stored within your HyperJar app ready to use either in-store or online, depending on the retailer – just as you would with any regular e-gift card.
For example, if you buy a £100 M&S e-gift card via HyperJar, you’d earn £5 (5%) in instant cashback, which will go to your HyperJar account. You’ll then have the e-gift card within your app to spend on purchases at M&S, plus £5 to spend wherever you want.
How much could you earn?
To make the most of this feature, you should only spend what you would anyway – for example, your weekly shopping on essentials.
HyperJar had cashback offers with Asda, Boots, Iceland, M&S and Morrisons when we checked on 1 November.
Here’s how much you could earn if you bought a £100 e-gift card for the retailer via HyperJar as a one-off and every week for a month.
| Retailer | Cashback rate | Cashback on £100 gift card | Monthly cashback on £100 gift card a week |
|---|---|---|---|
| Asda | 3.5% | £3.50 | £14 |
| Boots | 3% | £3 | £12 |
| Morrisons | 3% | £3 | £12 |
| M&S | 5% | £5 | £20 |
| Iceland | 3% | £3 | £12 |
Which? analysis of cashback rates taken on 1 November 2023
What to watch out for
The retailers and cashback rates on offer are subject to change, so you might not be able to get a rate of 5% with M&S every week.
Also purchasing a gift card rather than spending with a debit or credit card has its drawbacks. Gift cards tend to have an expiry date and, if the retailer goes into administration and you don't receive your order, you may struggle to get your money back.
To shop safer, avoid putting large amounts on a gift card, and buy it just before you’re about to use it.
- Find out more: what are my rights with gift vouchers and cards?
Should you use it?
One of the main perks of using HyperJar’s new gift card feature is that the cashback is instant and uncapped.
With cashback credit cards you may have to wait until the end of the year to receive your cashback, and with some bank accounts that offer cashback such as the Chase Current Account, the cashback is capped at £15 a month.
However, some people might find the step of purchasing a gift card a bit onerous to unlock savings.
HyperJar is also app-only, so if you’re not comfortable using a mobile and paying with e-gift cards, it might not be for you.
You should also consider what you plan on buying with the gift card. If you're planning on buying anything worth more than £100, such as a new laptop, you get more protection if something goes wrong by paying with a credit card – thanks to Section 75.
- Find out more: Section 75 of the Consumer Credit Act
Other ways to earn cashback on your spending
If you don’t fancy setting up an account with HyperJar, here are some other ways to earn cashback:
Get up to 5% with a cashback credit card
Cashback credit cards reward customers with a set percentage of cashback every time they make a purchase.
By putting your everyday spending on the card, you could potentially earn hundreds of pounds a year. It's important to avoid spending more than you can afford to pay back at the end of the month, as the interest charges are likely to outweigh any rewards.
Which? analysts think two cashback credit cards from American Express, which pay 5% cashback in the first three months, stand out in this category and have been awarded Best Buys.
- Find out more:best cashback and reward credit cards 2023
Use cashback sites
Cashback sites pay you a cash reward when you follow links to buy goods or financial products at certain retailers.
Websites such as Quidco and TopCashback offer cashback on a variety of goods and services – from mobile phones to car insurance, and bank accounts to broadband.
TopCashback also offers a cashback gift card feature called TopGiftCards, which works in a similar way to HyperJar, so this may be an option if you prefer not to use an app.
You can currently get 2.5% on Morrisons, 1.6% on Asda and 4.75% at Marks and Spencer.
- Find out more:cashback sites explained
Get cashback with your bank account
Some bank accounts offer to pay cashback on monthly bills, and others will pay a monthly bonus if you meet certain conditions, such as using your debit card a certain number of times.
For example, the TSB Spend & Save Plus account has no monthly fee and offers £5 cashback when you make 20 debit card purchases in a month.
Some debit and credit card providers also offer their own cashback schemes. Lloyds Bank, for example, offers Everyday Offers with retailers including Avis, Boden and Sainsbury's.
You just need to select a cashback offer, and the next time you spend with that retailer and use your card you will earn cashback.
- Find out more:best bank accounts for cashback 2023
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